Record labels have several key activities including talent development, artist marketing, handling legal aspects of music production, providing artist services, sales and distribution, and marketing and promotions. There are major labels that control most of the music market and independent labels that lack major distribution. Major labels have advantages of financing but independent labels can be more creative and responsive. The major labels examples are Universal, Sony, and Warner, while independent label examples are No Limit Records, Aftermath Records, and Fiction Records.

1. Record Labels
Structure and breakdown

2. Key Activities of a Record
Label
Talent development
Artist product marketing
Handling the legal aspects of producing music
Providing service to an artist
Sales and distribution
Marketing and promotions
Providing service to the distributors and retailers

3. Label types
The Majors: big distribution and dominant market share
The independent: these lack major distribution but they
can be large or small ‘major minors’
Sub labels and imprints: these are separate companies
or divisions distributed or owned by the major labels
Specialty labels: these focus on non main stream
distribution. For example, classical or gospel. They also
use non traditional distribution.

4. The Major Labels
Examples:
Universal Music Group -Which is a subsidiary of French
global telecom/ entertainment.
Sony Music Entertainment. This is a American based
company which is related to Japanese electronics.
Warner Music Group – Which is a US based and
publically traded
The major labels control approximately 70% of the music
market and 80-90% of the US music market.

5. Major music company
corporate structure
Corporate
conglomerate
(Corporation that has a
number of subordinate
companies or divisions)
Music Group Media – TV,
Telecom
Music Gas, water and
Record labels publishing Distribution other non music
company activities

6. Major Label Artists
Warner Bros
Universal Sony

7. Advantages of major labels
Well financed – so can afford better production,
distribution, marketing and manufacturing
They can offer artists ability, prestige and top production
resources.
BUT…
Until the 360 deals were introduced labels were unable to
gain any of the money that their artist made outside of
their music. For example, fragrance, ringtones, concert
revenues, merchandise sales.

8. The Independent Labels
Examples:
No Limit Records
Aftermath Records
Priority Records
Side One Dummy Records
Fiction Records
Way Out West

9. Advantages Of Independent
Labels
They're more creative – They can find more raw talent,
use creative development, marketing and financing
tactics. They can also build better brand loyalty amongst
fans.
They can build better regional connections through
publicity and sales
They are not restricted by long corporate approval
processes and can understand artists and trends faster.

10. Independent Label Artists
Jalapeno Records
Way Out West Close Harbor Records