Record Label
In the music industry, a record label is a brand and a trademark associated with the marketing of music recordings and music videos. Most commonly, a record label is the company that manages such brands and trademarks, coordinates the production, manufacture, distribution, marketing and promotion, and enforcement of copyright protection of sound recordings and music videos; conducts talent scouting and development of new artists (“artists and repertoire” or A&R); and maintains contracts with recording artists and their managers. The term “record label” derives from the circular label in the center of a vinyl record which prominently displays the manufacturer’s name, along with other information.
Within the music industry, most recording artists have become increasingly reliant upon record labels to broaden their audience, market their albums, and be both promoted and heard on radio, television, with publicists that assist performers in positive media reports to market their merchandise, and make it available via stores and other media outlets. The Internet has increasingly been a way that some artists avoid costs and gain new audiences, as well as the use of videos in some cases, to sell their products.
Record labels may be small, localized, and “independent” (“indie”), or they may be part of a large international media group, or somewhere in between. The largest 4 record labels are called major labels. A sublabel is a label that is part of a larger record company, but it trades under a different name.
When a label is strictly a trademark or brand, not a company, then it is usually called an imprint, a term used for the same concept in the publishing industry. An imprint is sometimes marketed as being a project, unit, or division of a record label company, even though there is no legal business structure associated with the imprint.
Major labels 1988–1998 (Big Six)
1. Warner Music Group
2. EMI
3. Sony Music (known as CBS Records until January 1991 then known as Sony Music thereafter)
4. BMG Music
5. Universal Music Group
6. Polygram
Major labels 1998–2004 (Big Five)
1. Warner Music Group
2. EMI
3. Sony Music
4. BMG Music
5. Universal Music Group (Polygram absorbed into UMG)
Major labels 2004–2008 (Big Four)
1. Warner Music Group
2. EMI
3. Sony BMG (Sony and BMG joint-venture)
4. Universal Music Group
Major labels since 2009 (Big Four)
1. Sony Music Entertainment
2. EMI Group
3. Warner Music Group
4. Universal Music Group
Record labels are often under the control of a corporate umbrella organization called a music group. A music group is typically owned by an international conglomerate holding company, which often has non-music divisions as well. A music group controls and consists of music publishing companies, record (sound recording) manufacturers, record distributors, and record labels. As of 2005, the “big four” music groups control about 70% of the world music market, and about 80% of the United States music market. Record companies (manufacturers, distributors, and labels) may also comprise a record group which is, in turn, controlled by a music group. The constituent companies in a music group or record group are sometimes marketed as being divisions of the group.
Record companies and music publishers that are not under the control of the big four are generally considered to be independent (indie), even if they are large corporations with complex structures. The term indie label is sometimes used to refer to only those independent labels that adhere to an arbitrary, ill-defined criteria of corporate structure and size, and some consider an indie label to be almost any label that releases non-mainstream music, regardless of its corporate structure.