Major vs. Independent record labels

1. What are the differences between major and independent record companies?

Major record companies have lots of power over the music industry. For example, EMI. Major record companies are also different in that they normally have a parent company, so for example EMI's parent company is the Universal Music Group. This sets them apart from independent record companies as they do not have a parent company. A good example of an independent company is PWL.

There are big differences in major and independent record companies for the type of contracts artists sign. The biggest difference is that major record companies make the artist sign over the music to them within the contract. This doesn't happen in independent record companies, therefore meaning the artist keeps all the rights to their own music. With this, they can sell it off to who they like and think will benefit them, i.e. TV adverts and films.

A lot of it also boils down to money. Major record labels offer 10 - 15% of their artists royalty, whereas independent record labels offer 40 - 75% in royalty. Being signed to an independent company means that you have more to live off, whereas major record labels take most of the money for their own commission - since they have a big brand name it is not really argued with.

Major record labels are very professional and do not form strong relationships with fans of the band. This may make fans lose eventual interest in the band as they cannot form a close relationship through social media. For independent record labels they set up a bond with their fans, meaning they're more likely to go to their performances and buy merchandise of their artist because they enjoy what they're doing.

Technology has now helped independent artists as they have a much wider platform to promote their artists without spending anything or little at all, with Youtube and Soundcloud being prominent within the independent industry.

2. Who are the big three and who do they own?

The biggest three music record labels are Universal Music Group, Sony Music Entertainment, EMI and Warner music group. All are USA based and take up about 20 - 30% of the music industry market. EMI is actually a subsidiary of the Universal Music Group. Sony Music deal with EMI's publishing and WMG absorbed with Virgin Classic label.

3. Independent UK labels

The independent UK label North London was founded in 2005, with the two main artists being JME and Skepta. They are part of the grime genre which has since become a very popular industry for the youth of the UK. They started by appearing on pirate radio stations, names including Heat FM and Deja Vu FM. JME's hit album Famous? in 2008 is what brought light to the brothers JME and Skepta, with Skepta following suit with his new album Microphone Champion in 2009. Most recent releases with the label have been Skepta's Konnichiwa (2016) and Wiley's Godfather (2017).

With this, I will most likely sign my artist to an independent UK record label, like FatCat records. As the video will not be very high production and pop rock is not the most popular genre (but still big enough to gain a good amount of interest), I feel a record label like this would be most sutiable.