Major Labels vs. Independent Distributors: Who to choose?
Domenyka Sarauz
2/8/18
Digital Distribution
With the creation of Napster, the music industry was going to witness an unprecedented change that shifted the structure of the industry entirely. The integration of technology and the internet caused music to be consumed digitally, rather than physically (which also meant the loss of major profits). This paved the way for music consumption today, which is dependent on major streaming platforms and digital sites online. This has caused distribution companies to offer more services, mainly concentrating on digital distribution and physical distribution has become secondary. Major Labels like SONY Music, Warner, Universal Music Group, have seen this radical change and have conformed to the changes. However, with the creation of the internet, artists no longer need a label to be successful and are able to choose from a variety of commitment with labels/distribution companies. Independent labels like The Orchard, Subpop, Ingroove allow for more liberty for the artists in their commitment with their labels. This era also called for the emergence of true independent distributors as well as self-managed music retailers, allowing for anyone who makes music to release it on major streaming platforms.
Throughout this radical change in the music industry, the major music labels have held their own and have changed to maximize profit. The major labels are known to have copious amounts of money, allowing them to do the most for the artist. The three largest music labels internationally are SONY Music, Warner Music Group, and Universal Music Group. They are media conglomerates, comprised of smaller labels and entertainment companies to own as much of the industry as they possibly can. For example, SONY Music is comprised of labels such as; Columbia Records, SONY Music Latin, RCA Records and EPIC Records. Some fo the most popular artists are signed to these major labels, like Bruno Mars, Kendrick Lamar, Beyonce, Adele, etc. These major labels sign artists on their labels and provide them with everything they need- from an advance on their album release, a budget to record their complete album from recording to mastering, marketing, promotion, merchandise, distribution services (physical and digital) and complete support from their label. However, this comes at a price- since the label acquires all rights of the artist’s music as well as creative control over the music the artist controls. This also means that the label takes a significant cut from royalties/sales over an artists’ music. If an artist were to cut ties with a label, that label would continue to own their music. Many artists sign with these major labels to receive the wide variety of benefits despite the label practically owning them. Since these labels are multimedia conglomerates, they produce millions in revenue and allowing them to have monetary freedom with the people they sign. However, independent labels allow more freedom for the artist and less responsibility for the label itself.
Three of the most popular independent labels are Sub Pop Records, The Orchard and Ingroove. Independent Music Labels can be more specific and cater to a specific type of audience or genre of music. For Sub Pop Records, they work with artists who make alternative rock/indie pop music. For independent labels, they mainly distribution services (physical and digital), merchandise, promotion as well as marketing services for the the artist’s music. Since these mainly tend to be distribution deals, the label does not own the artists music but receives a portion of royalties/revenue for the distribution. These artists’ tend to be less mainstream than artists signed to major labels and also allowing them full creative control of their music since independent labels do not give them extensive services like the major labels do. However, most independent labels are owned by a major label- extending the control and presence of the major music labels in the music industry. However, you still have to be signed to either a major or independent label and these labels have to choose to sign you. With true independent music distributor, anyone can release their music to retailers- for a price.
Two of the most popular music distributors are Tunecore and CD Baby. In the past, to have your music distributed to retailers, you must have been signed to a label to get your music into stores. However, since streaming is the dominant form of consumption, Tunecore and CD Baby make it possible for the beginning artist to distribute their music onto streaming platforms. Unlike the independent/major labels, these distributors do not offer any sort of marketing, promotion or merchandise deals for the artists. Artists can pay certain fees and prices to release their music on Spotify, Apple Music, etc. to be heard worldwide. This is perfect for beginning artists who want exposure and their music heard on streaming platforms but are not popular enough to be signed to a label. This also allows for an artist to be truly independent, have complete ownership of their music and not to be tied down to a label. The most relevant example is Chance the Rapper, who achieved extreme success without being signed to any label whatsoever. This allowed for him to receive the maximum revenue from his music and still have his music available with retailers. Bypassing streaming platforms, there are self-managed music retailers that do not need distributors to access their platform, where it’s completely controlled by the artist themselves. These retailers are Soundcloud and Bandcamp, where a user can upload their music directly to these platforms and have their music available to the listeners present on these platforms. Bandcamp is slightly more complex, where you can sell your music and connect directly with your fans, as well as physical distribution/merchandise. These retailers allow you to have more of the benefits that the labels offer but to have complete control over it while still owning your music. However, these platforms are relatively small compared to streaming services which causes artists to use a combination of both a true independent music retailer and a self-managed music retailer.
Personally, I really appreciate the fact that with true independent music distributors, you are allowed to own your music and receive the profits. However, I would love to be signed to a major music label due to the opportunities presented, as well as the convenience that comes with it. Many of the artists that I would love to collaborate with are signed under major music labels and this would give me the possibility of collaborating and meeting new artists under my own label. Not to mention, everything else would be taken care of and my primary obligation would to be create music that is meaningful to me and my fans. I feel that with such support I would really succeed in the music industry.
Overall, there are so many options for artists today to get their music out there, from international superstars to a local band to access these retailers which I think is extremely exciting and productive for the music industry.
