Record labels dominated the music world for decades. With massive budgets running into hundreds of millions, they controlled most of the market. This made it an absolute dream for most young artists to get picked up by a record label. It was almost synonymous with global fame and musical success.

The advent of social media and digital platforms has put a dent in the power wielded by these huge record labels. Once an insurmountable task, reaching an audience is easier now than it has ever been before. This begs the question: are record labels obsolete?

The answer to this question will depend greatly on you. To arrive at an accurate answer, however, we must first learn what record labels are all about. Only then can you say, for sure, whether it’s good for you or not.

So let’s take a look at the major record labels…

Major Record Labels

Record labels are companies that produce, promote, and distribute the music of artists signed to them. There are four top dogs: Universal Music, Warner, Sony, and EMI. These huge corporations have massive budgets behind them and are home to big artists like Eminem, Jay-Z, Rihanna, and plenty more than you probably know.

Apart from the flashy names, however, what do record labels do? How do they function? What do they give to artists that make them so desirable?

How Do Record Labels Work?

Record labels act as an investment bank for artists. They take a look at an artist and weigh their chances of blowing up and bringing in a huge audience that translates to profit. If they fancy the artist’s chances, they invest in their music careers.

They commit a huge budget and a team of writers, producers, and whoever else the artist needs to get their record out. Once the record is ready, they use their immense resources to promote it all over the world so that when it drops, it makes a huge bang.

Depending on the contract signed with the artist, the label will own all or part of the record. I won’t bore you with things like licensing and distribution contracts, but there’s always an agreement in place over how the profit will be shared.

Benefits

If you’re not already sold on record labels, here are some benefits of being signed to a major label:

1. They do all the promotion and distribution of your music.
2. They handle all your legal matters like lawsuits and taxes.
3. They provide worldwide reach.
4. You get a professional team to improve your music and personal brand.
5. You get instant credibility by being associated with a trusted name.

Cons

Hold your horses; don’t make a decision just yet. Here are some disadvantages that may provoke a second thoughts:

1. They own your music and can make decisions without consulting you.
2. You still have to fight with other new acts to keep the label on your side.
3. Nothing is permanent except the corporation. An exec who favored you might be gone all of a sudden and you’re left with someone who doesn’t care about you.
4. As the people in charge, they can dictate what kind of music you make, limiting your creative authority.
5. You must have built an audience for yourself already before the labels step in.

Now let’s look at the other side of the table, indie music.

Depending on how far you want to go and how quickly you want to get there may impact your decision on major vs indie label.

Independent Record Labels

Indie, or independent, musicians don’t have the massive resources offered by the major labels. Whether completely independent or part of a small company, indie artists are more likely to have a very niche audience without the global reach of the major labels.

The internet has made it easier to reach a wider audience, but the larger labels still have bigger budgets for ads and promotion online.

So how exactly does it work with independent artists or indie labels? What are the differences in operation between indie music and the major labels?

How Do Independent Record Labels Work?

Unlike the major labels, indie labels are privately funded. Social media and digital platforms have evened out the playing field a bit, but it’s hard to ignore the money gap. Indie labels are more likely to be tailored to a specific style or genre, and will only approach you if they enjoy and connect to your music as opposed to major labels that are just after sales.

This means you get more liberty and control over what kind of projects you’d like to do, your public image, and the revenue from any income you make. Some artists won’t even run with an indie label, going it alone. They get more control, but less funding. A higher share of the revenue, but less total revenue.

Benefits

Here are some benefits that could make you consider staying away from the major labels:

1. You get more creative control and can decide exactly what kind of music you’d like to make.
2. You get a bigger share of whatever revenue comes in.
3. You own your work and all the copyright.
4. Social media like Tiktok and Instagram, and digital platforms like Apple Music, Spotify, and Youtube make it easier to reach a bigger audience even without the funds.

Cons

Being an indie artist is no cakewalk, though. Here are some unpleasant things about it:

1. You have to work with a considerably smaller budget.
2. You have to do most of the legwork, not just make music.
3. You have to build your reputation from the ground. It’s very possible but takes much longer.
4. You have to learn all about building a music business from square one.

Examples You Might Want to Follow

Enough hypotheticals, let’s look at real-life artists you probably look up to. Every artist below has built a career worthy of praise and admiration.

Artists Signed To Major Record Labels

Let’s start with the shiny stars of the major labels.

Bruno Mars

You’ve probably heard his name before. Bruno Mars is a world renown star popular for his amazing vocals, top musical ability, and refreshing aura. Before all this, however, he was nothing but a lowly performer in Hawaii. He left the island for LA as a teenager fresh out of high school with his future ahead of him.

After several ups and down, Bruno Mars got his big break. His features in hits like Travie McCoy’s “Billionaire” caught the attention of Atlantic Records, a massive subsidiary of Warner. His subsequent album was a worldwide hit with songs like “Grenade” and “Just the way you are” earning him eight Grammy nominations.

Today, Bruno Mars has fifteen grammys from thirty-one nominations among many other awards. He’s a prime example of what record labels can do for you.

Rihanna

Another mega star, Rihanna burst onto the world stage as a teenager after she caught the eye of a certain Jay Z who was running Def Jam, a label owned by Universal Music, at the time. Rihanna eventually grew so big she acquired the rights to all her songs from the label. She has nine grammys from thirty-three nominations and has built her brand to the point of becoming a billionaire.

Artists on Indie Record Labels

The major labels are not the only route to success. These artists have proved this with their journeys:

Chance the Rapper

Having turned down offers from record labels several times, Chance the Rapper knows what it is to build a music brand. He hasn’t enjoyed the worldwide fame and recognition of either Bruno Mars or Rihanna, but he enjoys the freedom to do whatever he wants, however he wants it, whenever he wants.

He has also won three grammys out of a possible seven. If he can do it without the labels, why can’t you?

Lindsey Stirling

With over a billion, yes a billion, views on Youtube, Lindsey Stirling is another prime example of how to succeed without the major labels. She rose to fame by doing very well on the talent show, America’s Got Talent, and built her audience to these massive heights on Youtube. If you’re looking to forge your own path to success, she’s a great example to look up to.

Final Thoughts on Are Major Record Labels Obsolete

Both major record labels and independent music have some eye-catching benefits. They also have some unpleasant parts. Whatever you decide to do, remember that there’s never a single path to success. Weigh your options and go for whatever you believe is best for you. If you're set on going the indie artist route, there are indie music communities such as SharePro that can help you network within the music industry, or even sell your music directly to your fans.

There will be tough days, whether you’re in a label or all by yourself, but I’m rooting for you. I look forward to enjoying your music and celebrating your success. Cheers!

Independent VS Major Record Label