Independent label vs The Major labels. Pros and Cons!
Is there any point to be signed to a record label in today’s music landscape?
When it comes to getting a record deal, finding the right fit and structure with a label is crucial — but is an indie or a major record company a better overall fit for you?
Firstly, you will need to know the difference’s between a major and independent record label.
The common perception of a “record label” is one of the major record labels, located in London, Los Angeles or New York, which signs all of the major artists and bands.
These major record labels, including Sony, Warner, EMI, Capitol and Universal Records, are major corporations with hundreds of millions of dollars behind them to support projects they choose too.
This allows them to fully fund the biggest artists out there. In the eyes of emerging artists, a record deal with a major label was always the big prize to go after.
Bright lights and big city — sound familiar!
However, the major music industry is on life-support (or dead men walking) with the introduction of online social networks (Facebook, Twitter etc) and digital music retail stores such as iTunes & Amazon.
The fact that major releases are often leaked to the internet weeks before their release day.
Enter the Indie (short for Independent) record label.
What Makes a Record Label ‘Indie’?
Any music recording label that operates without the funding of the organizations of the major music labels is considered an indie (independent record label).
While major labels are global and operate their own publishing and distribution companies, indie labels work with other smaller companies, either in long-term partnerships or in smaller contractual relationships for their distribution and publishing needs.
The Indie Niche!
While indie labels can’t offer the kind of funding for artists that the major labels can, because of the benefits, indie label contracts are fast becoming a new goal for many artists — and a more realistic goal at that to be honest.
Indie labels offer many benefits that the Big labels can’t.
Because of all the upsides (and the fast trend toward social media and all digital platforms), indie labels have created a true niche for themselves in today's music industry climate.
The Pros of Working With an Indie Label
Indie labels generally have the freedom to work with whomever they like.
There’s no pressure like you’d find at major labels to sacrifice your tastes in favour of seeking chart success.
When you are signed to an indie label, in almost every instance it’s because the label is a huge fan of your music; that translates into dedication because they believe in what you’re doing as an artist and band.
Close Working Relationships
Because indie labels have smaller staffs and tighter rosters, musicians can more easily develop a close relationship with the people working on their record.
Although it’s not always the case that artists can pick up the phone and get an immediate answer, the odds of closer communication are greater than they are with a major label.
Artist-Friendly Deals
Some larger indie labels have relatively complex contracts, but smaller indies often do business on little more than a handshake and a profit split agreement.
You seldom find indie labels demanding any measure of creative control over their artists, and most indies don’t lock their artists into long-term, multi-album contract deals.
The Cons of Working With an Indie Label
Indie labels are not without their drawbacks.
Consider the following before you decide who you want to sign with.
Money!
While money is the top reason to sign with a major label, it definitely tops the list of negatives for indies.
While some indie labels are sitting pretty financially, most small operations are just trying to stay afloat.
They usually don’t have the finances to fund an all-out media blitz like the major labels, and they often have to get creative with promotion and PR ideas to stay ahead of the game.
They also can’t afford big advances, fancy packaging, large recording budgets, tour support, and other perks a major label has the funds to offer you.
With indie labels, you’ll usually have to remain financially invested in your own music career.
Size
Although the intimate size of indie labels has its upside in terms of closer and more accessible relationships, there is also a downside to being small.
Indies don’t have the purchasing power of major labels, and with a small roster, they have fewer strings to pull with the media.
Also, the smaller the label, the less influence, and power within the music industry and the press.
The Pros and Cons of signing to a major label!
Pros
- Larger promotional budgets
- More connections
- More clout and influence
- Can do business in bulk
Cons
- Resources spread among many acts
- Staff turnover
- Limited personal attention
- Limited negotiating leverage
Many dedicated music lovers work on the major label side of the music industry.
However, you will find not everyone who works at a major label loves music.
You’ll find a higher concentration of people who are in the business strictly for the money in major labels than you will at indie labels, and that sometimes ends up rubbing musicians up the wrong way.
There are good and bad points to sign with a major of an independent record label, and if you find your self in this situation…
Then look at the best way forward and seek advice from your professional team music industry attorney and account to help you navigate, so you are able to make an informed decision as an artist/band.
By Peter Moore
