Major labels such as Sony Music Entertainment own the majority of the global music market. They have significant financial resources that allow them to widely distribute, market, and sign new talent. However, major labels have a long corporate approval process. Independent labels like Roughtrade lack the distribution abilities of major labels but have more flexibility in their operations. They can be more creative in finding and developing new artists as well as adopting new media technologies. Roughtrade was founded in 1976 and helped launch the careers of influential punk bands in the late 1970s. It is now part of the Beggars Group and continues to specialize in genres like punk, indie pop, and post-punk.

1. Major’s Vs. Indie.
Jessika Rose Bloomfield and Calum Andrew Williams.

2. What is a major label?
• A major label is a record label which is dominant in the
industry.
• They own 75% of the worlds music and 80-90% of the US
market.
• There are three big record labels:
- Sony music entertainment.
- Vivendi Universal.
- Warner Music group.
EMI music group used to also be one of the big record labels but
has recently received lot’s of debt.

3. What is an ‘Indie’ label?
• An indie label is ‘independent’ they lack the ability of major
distribution.
• They are independently funded and not linked in with the ‘Big
Three’.
• The can range from home based hobby labels to actually quite high
profitable and successful large businesses.
• Although it can be an uphill struggle to get the music heard, as they
may not have the power of marketing.
• There are many independent record labels:
- Roughtrade.
- Domino.
- XL Recordings.
- Fools gold.
- Mad decent.

4. Advantages:
• Major label:
- Well financed – They have better access to money, therefore they
are better able to distribute, market and buy new talent.
- They are able to offer artists stability, advances and top production
resources.
• Independent:
- They are able to be more creative – find new talent, creative tactics
for marketing, build better brand loyalty.
- Speed – Not encumbered by long corporate approval process. Can
understand artists and trends faster.
- Make better and more creative use of new media technologies.
- Better regional connections.

5. Homework:
• Research one major and one minor label.
• Provide a history of the label , profile of their image/ style.
• Case studies of some of the artists they promote.
• Find out about their worth and how they made their money.

6. How do record labels make
money?
Music labels make money from the sales of CD’s and
merchandise. They get approximately 30% of the profit from CD
sales, whilst the artist only gets around 7%.
Many people believe that in the music industry the artist gets
the majority of money from record sales. This however, is not
the case. Let’s break it down for you. In the making of a CD here
are the key players and the percentage of sales that they get,
Artist (6.6%) Producer (2.2%) Songwriters (4.5%) Distributor
(22%) Manufacturing (5%) Retailer (30%) Record label (30%).

7. Major Label: Sony Music
Entertainment.
• The history:
Sony Music Entertainment was formerly known as CBS Records,
CBS was renamed in 1991. Sony merged with Bertelsmann
music group (BMG) to form Sony BMG. However, Sony
continued to run SME separately in Japan. In 2008 Sony bought
Bertelsmann’s 50% stake in Sony BMG to form SME Inc that then
became a wholey owned subsidiary of SME. In 2011 Doug
Morris, Former head of Warner music and Universal music
became chairman and CEO of SME.

8. Sony Music Entertainment
Profile:
Sony Music Entertainment is a major record label.
It is a Japanese run company.
They distribute: Latin, Country, Christian/Gospel, Classical and Dance/Electronic
Music
SME was founded by the renaming of CBS Music.
SME is one the four big companies.

9. Sony Music Entertainment
Case studies:
One of the artists that a subsidiary company of SME signs is
Avicii, A contemporary DJ and re-mixer well known particularly
for his song ‘Levels’ and also his work with Guetta on ‘Sunshine’
in 2012. His birth name is Tim Bergling, he is Swedish and has
been going since 2006.
Rock legends AC/DC, Aerosmith, Foo Fighters, Iron Maiden and
more are also signed to this record label. Gaining them a faithful
‘fan base’ over many generations.

10. Independent label:
Roughtrade.
The history:
Roughtrade began as the record shop Geoff Travis had opened in West London in
February 1976. ‘Paris Maquis’ by French punk rock band ‘Metal Urbaine’ was the
first song track released by Rough Trade and was swiftly followed that year by a
varied further eleven singles, many of which stand today as classics of their genre.
Reggae – reflecting the label’s location in the heart of the west Indian community –
punk and electronic music were presented. Cabaret Voltaire, Augustus Pablo, Swell
Maps, Electric Eels and Subway Sect were amongst the first artists to come from
Roughtrade. By the end of 1979, a number of bands now commonly associated
with Rough Trade had started to release records on the label, including Scritti Politti
and The Raincoats. Such was the label’s recognised importance that a television
programme the South Bank Show was devoted to it. When its first album, Stiff Little
Fingers’ ‘Inflammable Material’, was released later in the year, it became the first
independent record in history to sell over 100,000 copies and charted at number
14. Rough Trade grew far too large for its tiny premises. The growth of the label and
the success of its distribution arm, which by then distributed product by many
hundreds of independent record labels, meant that larger premises needed to be
found and in December 1980, the label and distribution moved to Blenheim
Crescent.

11. Rough Trade
Profile:
Rough Trade is an independent record label.
It is located in London, UK.
It was founded by Geoff Travis in 1978.
Rough trade specialises in genre’s such as: Punk,
indie pop and post punk.
The parent company of Rough Trade is ‘Beggars
group’

12. Rough Trade
Case studies:
On of the more famous bands signed by Rough Trade are ‘The
Libertines’. They shot to fame in 1997 and are still going today.
The Libertines played many gigs along side ‘The Strokes’, who
are also signed with Rough Trade records.
Many bands started out being signed with Rough Trade,
however through success have moved up to major labels, an
example of this is ‘The Smiths’ they then moved onto warner
bro’s.