Independent record labels operate with smaller budgets than major record labels that are owned by large conglomerates. They help artists raise awareness and get noticed by bigger record companies. Independent labels usually create and distribute CDs themselves by hand, while major labels can mass produce and distribute more widely. Some independent labels sign agreements with major labels for support with international distribution and licensing. Major labels also sometimes acquire independent labels or form partnerships with artists who start their own independent labels.

1. Zayd Hillawi
Institutional context
An independent recording label is a label that operates without the funding from bigger
major record labels. A major record label is much bigger than an independent record label
as it is run by a much richer company. Some labels are owned by large conglomerates, such
as Universal Music Group being linked to Universal studios. Warner Bros. Records is another
example of a major record label that is owned by a large conglomerate. Independent
recording labels usually operate on smaller budgets in comparison with the bigger record
companies. Many artists start from independent labels in order to raise awareness for them
and help get attracted by bigger record companies in order to make themselves bigger in
the world and release singles in a professional way. Independent labels usually put out their
own CD’s creating them by hand. They don’t have the financial power if you compare them
to the big record companies to have CD’s created in a faster way and also handed out faster
to the shops in order to promote it and make money from it.
Some independent record labels, in particular those with successful performing artists, sign
dual-release agreements (and make other deals) with major labels and may rely to some
extent on international licensing deals, distribution agreements, and other arrangements
with major record labels. Major labels may also wholly or partially acquire independent
labels. Some independent labels are started by major artists as well to help discover and
promote potential music stars. Some of these labels are owned by parent companies
though, as the music artist that founded them is signed by a major label themselves.
Independent labels don’t have the resources compared to the major records so they won’t
be able to distribute too many of the CD’s and they would need to use the internet for users
to purchase the songs, unlike major record labels who usually use all music shops and
internet sites to sell their artists CD’s, merchandise and so on.