The argument has been raging since the punk era of music in the late-1970s and early-1980s over whether bands actually need record labels in the modern era. The Guardian explains the argument has only grown over the years with more artists than ever looking to become independent and sell their own records to the public. In the era of downloads and bedroom studios, most artists look to create their own music as an independent as a way of proving to a record label they have the power to pull in fans. No matter what happens with an artist’s career, understanding what a record label does is something every artist should know and understand.
1. They own Copyright on the Recordings you Produce
Just how does an artist get paid? This is a difficult question to answer in the era of downloads and huge tours the work of a record label has had to change to make it worthwhile to artists. One of the ways an artist gets paid is through royalties paid to them by their record label for the recordings they make. When discussing royalties, you may not understand that you are being paid by a record company for your work. Benjy Grinberg Rostrum Records president and founder have looked to change the way music is owned and royalties paid for the work of his artists. Still, the basics of the record industry are that your music recordings will be owned by your label as copyright and they will pay you your share of the sales.
2. They Organize Publicity
One of the areas you may not have considered is how you are going to get a spot on a radio or TV show to bring your music to the attention of the world. The first step is to get signed by a record label to give you an experienced press officer. When you think about a press officer, you may think they simply handle press releases and any inquiries about your band, according to the BBC.
Most press officers in the record industry have worked with various companies and media organizations to give them the chance to become known to producers of TV and radio shows. Without an experienced press officer linked to a record label, you may struggle to get a spot on any major TV or radio show in the 21st-century.
3. You Work to their Terms
When you sign a contract with a record label, you will usually find yourself tied to the terms created by the record label that tends to favor them. This is particularly true of the major labels and larger independent labels who will want to have a say in almost every aspect of your life. Along with forcing you to accept the producer of their choice, they could force you to record music in a specific genre or style.
Balance Careers reports you may find yourself struggling to find the artist you wanted to be when you set out on your journey to record music. Benjy Grinberg Rostrum Records CEO has allowed the artists signed to his label to enjoy much creative freedom leading to his label becoming one of the most respected in the world.
4. 360 Deals are Available
Between 1999 and 2012, the arrival of the internet and the ability to download music directly to a mobile device changed the way the public consumes music. The evolution of the record labels of the world quickly began at the same time with most label leaders understanding they had to find new ways of funding their labels in the future. In 1999, the sales of recorded music generated over $14 billion falling to just over $7 billion in 2012. This fall has led to the development of what has been called 360 deals.
If your record label asks you to sign a 360 deal, you should take a look at the fine print of your contract. A 360 deal is a difficult and controversial new aspect of the recording industry because it allows the label to take a percentage of aspects of your career they have little interest in. A 360 deal will give a record label a percentage of every media appearance, advertising campaign fronted by you, and money made from fan groups. The use of 360 deals is an area that more artists want to avoid if they know what they are looking for in their contract.
