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Record Labels: Who are they?

I often get asked tons of questions about what the various people and companies do in the music industry. So I figure this is a great platform to let people know what roles are played in the music industry and why they are important.

The first role I would like to cover is the Record Label.

The official definition would be something long the lines of this...

    "A record label is a brand and a trademark associated with the marketing of music recordings and music videos. It is more commonly the company that manages such brands and trademarks; coordinates the production, manufacture, distribution, promotion, and enforcement of copyright protection of sound recordings and music videos; conducts A&R; and maintains contracts with recording artists and their managers." (Wikipedia.org)

Recording Label

So record labels do a lot towards making the career of an artist a success. Often your most experienced and successful music industry professionals are involved in the management of Record Labels. Record Labels have a huge wealth of knowledge and most importantly contacts and experience in their industry to ensure the success of the music they take on.

There is a general consensus that if you signup to a record label that the record label will take advantage of you and rip you off. I would like to disagree to this sentiment.

I believe that record labels provide a service of marketing and promotion to artists that sign up with them. Those record labels understand that high levels of promotion in the right area's generate album sales. Those album sales make the money for the band. The problem is that the record label has spent heavily into the artists promotion and needs to get their money back or they cannot afford to continue providing its excellent service to the music industry. It is a little more complicated than this but the concept is fairly simple to understand.

I am not saying that every record deal is a gift from above. Make sure that you have lawyers check your contract out before you sign anything. (We will cover the role of lawyers in a future article.) If you do sign a contract that is unfair and does not create a winning formula for all parties of the deal, then you could be in for a rough ride that is very difficult to jump off.

At the end of the day a great contract is one that benefits all parties concerned. Record Labels provide an invaluable service and are committed to the music industry. In South Africa especially we see a great level of commitment to promoting South African music from South African Record Label.

Written by Mike Saunders
Marketing and New Business Development at Sesalos PTY LTD

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