In some of my past articles I have spoken on what some of the differences are if you were to sign to a major record label, an independent record label, a production company or a publishing company. Each of them operates a little differently, as each of them has a different aspect of music and a different type of artist they work with. As I have spoken about in previous articles, major record labels are looking to sign the already developed artist, the one who has hundreds of thousands or millions of followers and that has an already established buzz around their music. The independent record label is looking to sign the up and coming artist, one that they see as having potential, one that is primed to become a star but is still in need of some development. The production company is looking to work with producers and younger artists, ones that are in need of full development, but have the potential to become great, and producers that can work with these artists as well as sell tracks to other artists. The publishing company is looking to work with songwriters and music producers, ones that can create tracks for different genres to sell to established artists and tracks that the company can sync in television and movies. So, what is the actual difference between these companies?
Major record labels or “internationals” are large companies often under the control of a corporate umbrella called a “music group.” They operate their own distribution and publishing companies. Major record labels are also heavily funded. They have big financial budgets for marketing, production, touring, and more. They also have a large network of connections and influence in the music industry.
The big three major record labels are Sony Music Entertainment, Universal Music Group, and Warner Music Group. All other major record labels are “sub-labels” owned by either of the big three.
Independent record labels are small companies called indie or boutique labels. They are generally not affiliated with or funded by the three major records labels. (although some if not most of these independent labels have distribution through at least on of the major record labels) However, these indie labels can work with other smaller companies for distribution and publishing. Many consider boutique and indie labels as artist-friendly, as they offer many other benefits that may be more important to the artist. However, they don’t have the funding for artists that major labels can provide.
Most music production companies are independent, as very few are owned or operated by record labels or parent companies. Many production companies do not own recording studios either, leveraging their business finances by outsourcing recording, manufacturing and distribution functions to contracted companies. The primary function of a production company is to locate artists and facilitate the recording, manufacturing and distribution of musical product.
A music publisher is fundamentally responsible for licensing and administering the composition copyrights of songwriters. Publishers vary in sizes: some are small, independent boutique firms and some are branches of multinational corporations.
Music publishers offer a variety of services. Typically, they are responsible for securing the placement of songs in the publisher’s catalogue where royalties and other revenue will be generated. These revenue streams range from royalties obtained through the licensing of compositions for the purposes of sound recording, to digital streaming and synchronization in film, commercials, or television. Publishers interact regularly with collection agencies such as the Harry Fox Agency and Music Reports for mechanicals, and ASCAP, BMI, and SESAC for performances in order to properly collect royalties. Typically, record labels maintain close relationships with music publishers, as publishers control the compositions being recorded by the artists signed to their rosters.
As I have talked about at length in a variety of my previous articles, the point of a record label is to make money, regardless of the expense it takes on the artist. I am sure most label representatives will say otherwise, and be quick to argue this point with me, but it is clear not only by their actions, but by the stories told from artists who have been signed by different major labels, their sole priority is the bottom line. (because as we know this is the music business)They are going to sign and work with artists that they feel can bring in the most amount of money as fast as possible. Once an artist has reached the point where they are no longer producing at a certain level, or the level deemed suitable by the label, that artist will be shelved or dropped and the label will move on to the next artist that is going to take their place and generate the same amount of income. (generally this is an artist that is close to or almost an exact replica of the artist they have dropped or shelved because these major label are tuned to what the most popular sound is at the moment) Never forget that before anything else (yes that means creativity and creative integrity) that this is a business and the artists (as well as the people in the industry that are not at the top running the industry) will be treated as such, meaning the commodity they are. If you don’t produce, they will find someone that will.
An independent record label serves one of two purposes. The first being completely independent of the major record labels, generally run by a current or former artist, writer or producer, with the intention of finding and developing talent. The second, is being affiliated with a major record label for the purpose of finding talent that can be indirectly signed to this major label. By being signed to an independent label that is affiliated with a major it means that while the artist is technically signed to the independent label, ultimately they are under the umbrella of the major label, and when push comes to shove, the major label has final say over what happens with the artist and how the artist can operate. Independent label that are associated with major labels (meaning usually the artist that has signed with the major label has created their own label under the umbrella of the major label) are used as “proving grounds” for developing artists. If the artist signed to the independent label proves worthy, the major label will sign them. If not, they are not technically signed to the major label, they are signed to the artist’s label that is associated with the major label, so no harm no foul. (at least in the eyes of the major label, because the fault and expense goes towards the artist that signed that artist to their label, not the major label) If the independent label is truly an independent label with no affiliation to a major (other than maybe distribution) they will operate in a way that is more towards the artist and their development, than to the terms of a major label. Meaning, they will find and develop up and coming talent they see potential in, rather than scooping up artists for a money play as the major labels do. For these labels it is about the artist and their creative integrity, of course they want to generate profit just like any other business or company, but their focus is on the artist, their music and their career, not solely on the profit margin of the artist.
A production company can be considered an independent label, but in most cases is not considered a label at all. As the name states, the production company serves the purpose of producing records. Generally they will find emerging talent to work with and begin the process of creating records for this artist. Generally this artist is in the beginning stages of their career and still has a vast amount of development that they need to go through before being ready to be a full fledged artist and release music. (think 1501 and Megan Thee Stallion) The production company will work with this artist to get them ready musically, mentally and physically to be an artist, all with the hopes of getting this artist signed to a major record company. The second aspect of the production company is in regard to music producers. For this purpose the company can be comprised of music producers (not necessarily signing artists or working with artists directly) that create music (beats, instruments, compositions, etc.) that they then pitch and sell to outside artists. In this case, the production company can have specific artists they work with, they can have artist that they sign to work specifically and directly with the producers, but it is not always the case, as the music producers that make up the production company are working to create music that can be sold to already established major artists for placement purposes. A “true” production company may not have any artists signed to them at all, and may strictly work with music producers solely for the purpose of pitching their beats to labels and artists.
A publishing company will generally work more with music producers and songwriters instead of directly working with artists. A publishing company is looking to pitch, sell and shop records to major record labels, television shows, video games and movies. They will sign songwriters and producers with the sole purpose of taking the songs and tracks these writers and producers create and placing them with major artists on their albums, or to be used in television and film. A publishing company is less worried about releasing the music of an artist, because they are focused on working with catalogs of music they can continually be placed in other mediums for residual income. That being said, in some cases publishing companies will sign artists that are actual artists rather than a writer or producer for development purposes. In this instance, similar to and independent label or a production company, the artist is still in their development phase and is not yet ready to be signed by a major record label. The publishing company (mostly due to their connection with major producers and writers) will develop the artist, place them with the right producers and writers in hopes of getting the artist signed to a major label. In the process of development, the publishing company will attempt to get this artists placements in other mediums, and if the artists is also a writer, they will shop their songs for placement on already established artists.
As an artist you have the option (of course only if one of these companies is interested in signing and working with you) to sign with any one, or sometimes multiple of these companies. (because in most cases an artist can sign with a label and a publishing company, as these two companies generally work in tandem but in separate field of the music industry) Each company, as you can see, serves a different purpose and can help an artist in different aspects of their career and artistry. Where every artist wants to sign with one of the major record labels, because they see this as the end all be all of the music industry and the holy grail of being an artist, sometimes signing with one of the smaller companies can be more beneficial for you as an artist. It is all going to depend on where you are in your career when these companies come calling, and which situation is best for you at the current moment, and your career going forward.
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