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A record label is a brand created by companies that specialize in
manufacturing, distributing and promoting audio and video recordings, on various formats including compact discs, LPs, DVD-Audio, SACDs, and cassettes. The name
derives from the paper label at the center of an analog disc
record.
Most major record labels are owned by a few large multinational
companies that make up the almost all of the global recording
industry, although there is a recent resurgence in independent record labels.
Labels as brands
Recording companies often invest a lot of time and money in discovering new talent or developing the talent of artists already
under contract. The association of the brand with the artists helps define the image of both the brand and the artist.
In spite of the fact that both parties need each other to survive, the relationship between record labels and artists can, at
times, be a difficult one. Many artists have had albums altered or censored in some way by the labels before they are released --
songs being edited, artwork or titles being changed, etc. Record labels generally do this because they believe that the album
will sell better if the changes are made. Many times, the record label's decisions are correct ones, but this typically
frustrates the artist who feels that their artwork is being destroyed.
In the early days of the recording industry, record labels were absolutely necessary for the success of any artist. The first
goal of any new artist or band was to get signed to a contract as soon as possible. In the 1940s, 1950s and 1960s, many artists
were so desperate to sign a contract with a record company that they usually ended up signing a bad contract, sometimes giving
away the rights to their music in the process. It is a good idea for artists to hire an entertainment lawyer to look over any
contract before it is signed.
Industry consolidation
In the 1970s and 1980s, there was a phase of
consolidation in the record industry that led to almost all major labels being owned by a very few multinational companies, who
in turn were members of the RIAA.
See also: List of record labels
The resurgence of independent labels
In the 1990s, due to the widespread use of home studios, consumer CD recorders, and
the internet, independent labels began to become more commonplace. Independent labels are typically artist-owned (although not
always), with a focus usually on making good music and not necessarily on the business aspects of the industry or making lots of
money. Because of this, independent artists usually receive less radio play and sell fewer CDs than artists signed to major
labels. However, they usually have more control over the music and packaging of the released product.
Some independent labels become successful enough that major record companies negotiate contracts to either distribute music
for the label or in some cases, purchase the label completely.
On the punk rock scene, the DIY punk ethic encourages bands to self-publish and self-distribute. This approach has been around since the
early 1980s, in an attempt to stay true to the punk ideals of doing it yourself and not
selling out to corporate profits and control. Such labels have a reputation
for being fiercely uncompromising and especially unwilling to cooperate with the Big Five record labels at all.
See also: List of independent
record labels
The emergence of open-source labels
Main Article: Open source record
label
The new century brings the phenomena of the open-source or open-content record label. These are inspired by the free software
and open-source movement and the success of GNU/Linux.
Examples are
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