Record Labels: Then, Now, and What's to Come
Record labels come and go but the history of them can shed light on their uncertain future.

Once the guardians of the music industry, record labels have been forced to change. The world is ever-changing, and everyone must either change with or be consumed by it. Music isn’t left out of this wind of change and every member of the industry from producer to distributor must adapt or risk extinction. In this article, I’ll explore the history of record labels, how things have changed, and what we can look forward to in the future.

Will record labels continue to be relevant, or is their time past? What must they do to stay relevant in our day and age? Let’s talk about it.

Then…

Financial support

For most upcoming artists, the cost of producing and distributing music is too much to bear alone. Back in the day when artists had to produce CDs, these costs were even higher. Record labels helped to solve that problem by giving artists an advance to be repaid once the project was ready for distribution. So, for many artists, success wouldn't be possible without the financial support of the record labels.

Some artists signed without knowing exactly what was involved, while others understood exactly what they were getting into and considered it a necessary evil. So one of the reasons why record labels were the gatekeepers of the industry was their financial muscle.

Tech support

It's one thing to sing beautifully, and a completely different thing to make music. The work that goes into music production usually takes several professionals to do properly. Upcoming artists usually have to do everything by themselves. From graphic design to mixing and mastering, it takes several processes for a record to be ready. Record labels provide all that.

Record labels provide their artists with a full team to work with. Some artists don't even write their music. All they have to do is show up and do what they do best. All the other processes will be handled by professionals. This meant artists signed to labels even made the highest quality music and were miles ahead of everyone else.

Distribution

Again, things were different decades ago. Distribution was a completely different ballgame in the age of CDs. To cover only the United States, one would have to spend an insane amount of money. The only people with arms long enough to reach not just across the United States but the entire world were the record labels. This meant upcoming artists could only hope to conquer their hometown, while signed artists had the world at their feet.

So true success in the music industry was almost impossible but at the peak of their powers, things changed.

Now…

Streaming platforms

Of the many things that changed, two have especially hurt the popularity of record labels. One of them is the advent of streaming platforms. People no longer had to go to stores to buy CDs of their favorite artists. Today, almost nobody buys CDs, and those who do are more after the vintage feeling than anything else.

So it's easier than ever to distribute music. If nothing else, it costs way less to upload music to digital platforms. This has rendered one of the biggest advantages of record labels obsolete and unnecessary.

Social media

Another massive advantage of being signed was the extensive reach they had. The arrival of social media has quenched that almost entirely. The world has become a much smaller place because people in different places can interact without meeting face to face. So an artist can interact with potential fans anywhere in the world.

One of either streaming platform or social media would've been bad enough, but the combination is terrible. An artist can now upload their music to a streaming platform, and then share the link with fans all over the world. All this with a few clicks too.

Adaptation

Record labels have suffered as a result of these two changes. Some have even said the era of record labels is over. I wouldn't go that far, but record labels as our parents know them are dead and gone. Many artists still need the financial, legal, and technical support offered by the record labels. They can still reach a wider audience.

But it's no longer a given. If you work hard and smart enough, artists can build an audience and grow their careers without the help of the label. So they must find new niches if they're to remain dominant members of the music industry.

The Future…

Flexibility

Record labels have struggled to stay relevant with all this technological advancement, but this is only the beginning. The world never stops turning, technology keeps improving, and the music industry keeps changing. Record labels will have to change if they want to stay relevant or they might risk losing business.

Record labels will have to become more flexible. They can no longer own the artists, so they have to partner with them. We might even come to see artists signing different deals with different labels on different parts of the music process. One label can handle production while another handles distribution. This would've sounded crazy decades ago, but here we are.

Artist-centric

Record labels must understand that they no longer hold all the power. More and more, artists are taking control of their music careers. Where it was easy to convince artists that success without them was impossible many years ago, labels must now dig deep to find ways to attract artists and convince them why signing is good for their careers.

Events and Culture

Record labels have long been content to stay in the shadows while enjoying the massive financial rewards of their investments, the artists. With the world changing, however, they might have to come out more and engage the fans directly. One great way to do this is to create events and tap into culture. Imagine an event like Coachella being hosted by a single record label.

That endears them to the fans and ensures they still have something to offer artists, a massive audience, at least.

Final Thoughts

Times have changed. Times are changing. It's inevitable. So, instead of fighting it, everyone must accept it and adapt to it. Or be left behind. Every day, we're faced with choices that will shape our futures. Record labels have plenty to think about in this regard.

How can they regain their former status? Will they adapt or fight? One thing I know, artists have never been in a better position to succeed.