The three big records labels in the United States are “Universal (Interscope, Republic, Capitol, etc.), Sony (Columbia, RCA, Epic, etc.), and Warner (Atlantic, Warner, Elektra, etc.).” (p. 114) However, even behind those big three record labels, are small independent distribution companies that support their smaller artists. With these big three record labels in the U.S., we cannot but help think about how powerful they are and how much the artists under these labels have it “easy” because of the amount of the support they receive from these large firms. Despite that, are these labels really needed for artists? Do the artists really benefit from these record labels?
Record companies were the gateway to success because it took a “large organization (and a lot of money) to manufacture and ship records to stores (you needed manufacturing plants, warehouses, sales forces, shipping people, freight charges, financial controls, etc.)” (p.123) With the power that these record labels held, artists have no choice but to try their hardest to sign with these labels so that they would succeed to the fullest. These labels held so much power that artists who were signed with smaller companies, could not even get their music known because of how much support these artists in bigger labels had. Independent artists were always put to the back, not getting the recognition they deserved especially because record labels “paid retailers a lot of money to position their product prominently in the stores,” (p.124), causing these smaller artists to be hidden from the public.
However, despite all these powerful factors that these record labels hold, times have changed. Although these big three companies still hold the most power in the music industry, the music industry is not the same as it was a few years ago. Smaller artists are able to put themselves out there and receive recognition, just as much as bigger artists are. That “superstar” era of major artists, like Justin Bieber, Drake, etc., is long gone because of how different the industry and even music fans have become. Music fans evolved to seeing these “superstar” artists as humans, just like everyone else, and craving that natural version of the artist. Fans still look up to their favorite artists as perfect and ideal, however, they love to see their favorite artist’s natural and genuine personality.
So, if the era of superstars is slowly disappearing, is it really that important to be signed to these big three record labels? Small artists who are signed with independent companies have been able to receive the acknowledgement that they deserve. Record labels may be great for marketing your music to become a big artist, however, once you sign a contract with a big label, you lose your freedom and control of everything that you had control of before you signed with a label. Not only that but you are also giving up “a chunk of your income from both record and non-record areas.” (p. 125). The era of getting recognition by these large record labels has passed and now, even if you are a niche and small artist, there are plenty of ways to receive recognition. There are ways to build your fan base on your own because of how powerful social media has become and there are even “virtual” record companies that have successfully helped artists get their name out there. So, in the end, there are pros and cons with signing with a record label, but if you are a small artist and you have the power to be successful on your own, there is really no point in signing with a record label.
Citations
PASSMAN, D. S. (2023). All You Need to Know About the Music Business. SIMON & SCHUSTER. (Chapter 7)