A record label is a chartered corporate entity whose main focus is turning an art form (i.e music) into a money making machine primarily in the music industry but can venture in other fields via the use of a 360 deal signed with an artist.
So it lies in the best interest for a record label to take care of their investment which is the “artist” with the end goal of promoting and marketing the artist while at the same time expecting a reasonable return on investment (ROI).
However, a record label can only put up with the mandate to finance and promote an artist to a reasonable extent without exposing themselves too much to any financial risk.
That is, if a record label fails to address the issue of risk management in making contractual provisions to the artist’s needs. Then the end result can have the similarity of polishing a turd whereby the record label continues to push an artist that is constantly failing to make waves and not building a loyal fan base.
You can think of major records labels as huge multinational companies which have their tentacles in almost every aspect of the music industry whether it’s from a record company division or a music publishing division, you name it.
Nonetheless the following is a list of notable major record labels in the music industry:
- Sony Entertainment Music (i.e Sony Music)
- Warner Music Group (i.e WMG)
- Universal Music Group i.e UMG)
- How to Start a Record Label in South Africa
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- How Music Publishing Works in South Africa