Independent record labels edit
An independent record label is one that. Independent labels generally have greater creative freedom, at the cost of smaller budgets and personnel.[1] Independent labels are often able to support artists in more specialized styles of music,[2]
Distribution edit
There are a few ways an independent label may go about distributing its music.[2] Some independent labels are owned by major labels, who carry out the distribution for them.[2] Other labels instead go through independent distributors.[2]
Contracts edit
An advance is a pre-payment of royalties from the label for the artist to record the album; it is paid back through the album's royalties.[3] Independent labels generally give out much smaller advances than major labels, if any.[3][2] Additionally, some independent labels will cover an album's recording costs instead of proving a set dollar amount as an advance.[2] One advantage of smaller advances is that artists have less to pay back, and therefore can begin to profit quicker.[2]
Independent record labels edit
Some independent labels distribute their own product while others distribute via a major label. Independents may be owned by a major label who then distribute for them.[2]
Contracts edit
Independent label contracts typically resemble contracts offered by major labels because they have similar legal liabilities to define before representing an artist. There are differences, however, usually with regards to less advances, lower studio costs, lower royalties, but fewer album options. Due to financial constraints, independents typically spend much less on marketing and promotion than major labels. But with lower royalties rates typically paid to artists and lower production and promotion costs, independent labels generally can turn a profit off lower volumes of sales than a major label can.
Although not common,[4] there have been instances of profit-sharing deals with independent labels in which an act can get as much as 40–50% of the net profits. In this type of contract, the net gain after all expenses have been taken out are divided between the label and artist by a negotiated percentage. However, deals in this form can take longer for an artist to gain any profits, if at all, since all expenses – such as recording, manufacturing, publicity and marketing, music videos, etc., are also taken into account. Only if an independent artist becomes vastly popular are deals of this type more advantageous.
Independent labels rely heavily on personal networking, or "word of mouth", to expose their acts.[5] Independent labels tend to avoid high budget marketing tactics, which usually does not fall in the budget of an independent label. This of course contributes to the overall lower production cost, and may help the artist to receive royalties sooner, if warranted. Major labels tend to watch indie label artists and gauge their success, and may offer to sign acts from independents when their contract is up. The major may also request to buy the contract of the act from the independent label before the contract is up, giving the independent label a hefty financial payment if they choose to sell the contract.
Differences between independent and major labels edit
Many acts choose to go from an independent label to a major label if given the opportunity, as major labels have considerably more power and financial means to promote and distribute products, sometimes increasing the chances of greater success.[6] Some acts, however, may choose not to go to a major label if given the opportunity, as independence generally offers more freedom.[6]
Major label advances are generally much larger than independent labels can offer. Some smaller independent labels offer no advance at all; just recording cost, album packaging, and artwork, which is also recoupable. If an artist gets no advance at all, they owe their record company less money, thus allowing them to start receiving royalty checks earlier; that is, if sales warrant any royalty checks at all.[7]
A successful independent label with a strong musical reputation can be very appealing to a major label. Major labels look at independent labels to stay current with the ever-changing music scene.[8]
Independent labels tend to be more open creatively, however, an independent label that is creatively productive is not necessarily financially lucrative. Independent labels are often operations of one, two, or only half a dozen people, with almost no outside assistance and run out of tiny offices.[9]
Many current artists use their own resources to produce, record, market and release music through Spotify, SoundCloud, and other streaming platforms with social media in a direct, do-it-yourself manner allowing creative distribution.[10] There is the potential for artists to gain large numbers of streams on Spotify if their music are included in certain popular playlists.[11]
References edit
- ^ Hunt, El (2019-07-02). "How to run a small independent record label". NME. Retrieved 2024-05-21.
- ^ a b c d e f g h Friends, Stacey. "Independent Labels: What's the Deal?". Performer. Performer Mag. Retrieved April 13, 2008.
- ^ a b Kellogg n.d., Advances and Recording Budgets.
- ^ News, B. (Jul 7, 2006). "EMI and new music label plan profit-sharing deal with artists". The New York Times.|
- ^ Morris, C. (Aug 25, 2001). "Beating the indie odds?: Label entrepreneurs make a go in tough market". Billboard. Vol. 113, no. 1. p. 80.
- ^ a b Agnew, Harriet (17 February 2018). "France's indie music labels find their voice". Financial Times. Retrieved 2018-02-22.
- ^ Ricci, Benjamin. "Independent Label vs. Major Label Contracts". Performer Mag. Retrieved 2016-09-16.
- ^ "Deals That Await Successful Independent Music Labels – Christopher Knab". Guitar9. 2016-08-01. Retrieved 2016-09-16.
- ^ Barclay, Michael. "King Cobb Steelie Simply Rational". Exclaim.ca. Archived from the original on 2007-02-09. Retrieved 2016-09-16.
- ^ "Music Festival Blog | United States | Vibe with Ade". Music Festival Blog | United States | Vibe with Ade. 16 February 2018. Retrieved 2018-02-22.
- ^ Aguiar, Luis; Waldfogel, Joel (September 2021). "Platforms, Power, and Promotion: Evidence from Spotify Playlists*". The Journal of Industrial Economics. 69 (3): 653–691. doi:10.1111/joie.12263. ISSN 0022-1821. S2CID 215728062.
Sources edit
- Kellogg, John (n.d.). BerkleeX MB110x: Introduction to the Music Business (Massive open online course). edX.