Overview of the Record labels industry Essay Example

career management allowing artists to spend more time creating music. Managers use their connections to facilitate an artist's ability to sign additional contracts with agents who arrange work, gigs, and record deals.

Contracts will be signed with publishers to publish sheet music, promote artist compositions, and collect royalty payments. Record labels will also require contracts. The function of record companies is to provide financial support for recording production, release, and promotion. Dominated by transnational corporations, record labels prioritize producing music that maximizes profit. The cost to manufacture and distribute a disc is approximately $2.

It is common for artists and songwriters to receive royalties ranging from one to two dollars per disc, while retailers typically add five dollars per disc, demonstrating how major record companies profit greatly. These companies not only record albums, but also distribute them, and have entered a phase of concentration and integration after the initial industrialization phase of mass recording for mass consumption. As a result, the record company market consists mainly of a few large-scale companies or multinational media conglomerates like Time Warner, Thorn-EMI, Sony, BMG, MCA and Polygram that engage in processes of mergers and takeovers, as well as horizontal and vertical integration.

Independent and alternative record labels exist in various countries alongside major companies. These labels differentiate themselves by operating through independent or localized networks of contacts, producers, and distributors. They typically offer short-term contracts and market more affordable services.

Cheaper and more efficient recording technologies have played a crucial role in the development of independent music labels. While these labels often struggle to balance commercial success with innovation, they excel at discovering and testing new talent. Independent labels

are able to cater to specific demands that major companies are unable to address, often specializing in certain music styles. For example, Warp Records focuses on innovative electronic music. The success and impact of record companies depend largely on their organization and size.

The structure and organization of Record Labels varies greatly between countries, depending on factors such as access to recording equipment, ownership of recording studios and companies, and how musicians can gain public exposure. However, regardless of location, a typical record company is structured with a managing director overseeing the overall operations of the various departments - Marketing, Promotions, Sales, Finance, and Artists and Repertoire (A;R). The primary role of the marketing department is to manage promotional activities, including budgeting and release planning.

Within the music industry, the marketing department has a range of responsibilities. These include overseeing product managers who organize the band's promotion strategy and manage their budget, with the exception of recording expenses. Additionally, this department allocates the artist's time, develops visuals, and establishes strategic partnerships. Essentially, their role involves creating and executing marketing strategies for artists and their products, as well as facilitating communication between management, A&R, and agents. In conjunction with this, the promotions department is responsible for securing free publicity through various media outlets such as radio, TV, press, and the internet.

Each media outlet has its own manager, such as a TV promotion manager responsible for promoting products through television or a radio promotion manager responsible for promoting products through radio. These various managers secure airplay (radio promotion), video play and television appearances (TV promotion), and press coverage (press promotion). All of them require significant networking skills within

their respective industries to succeed - knowing radio station music heads, radio producers, TV producers, playlist committees, journalists, magazine editors, and more. Additionally, they must possess exceptional sales abilities, business acumen (including knowledge of BCG Matrix, PEST, SWOT analysis, and business strategy), and highly-developed social skills.

The team works with various types of managers, including assistants and work experience people, who apply the company's policies on a daily basis. Their responsibilities include coordinating phone calls, managing the requests of pluggers, artists, and managers, and producing promotion materials like photo shoots, competition prizes, radio edits, and video commissioning. Typically, all departments such as TV, radio, press, and online promotion departments are developed alongside the marketing department. The Head of Promotion then oversees all the promotion managers and establishes the budget for the department. This individual is also responsible for reporting activities and results to the managing director (MD).

The person responsible for department results, often with influential connections, is the Head of Sales and their Sales department. Their responsibilities include setting and achieving sales targets through various strategies. The Finance department is headed by a Finance Manager who oversees the company's accounting and supervises the work of Accountants. Additionally, the A&R department focuses on searching for, signing, and developing artists.

Typically, this unit comprises several roles: a Parts Coordinator, A&R Scouts, A&R Assistants, A&R Managers and the Head of A&R. The Parts Coordinator's duties entail organizing recording and master tapes for easy retrieval. The A Scouts attend performances, review demos, scout for potential artists and present their findings to the A Manager. As their name suggests, the A Assistants aid and back up the A Managers.

The A;R

department is responsible for searching, signing, and developing bands. A;R managers decide on which acts to sign and develop strategies for them after they are signed. The head of A;R oversees these functions, along with the department's performance. They also help approve signings and collaborate with other departments to find the best strategies to adopt. The signing process can take weeks or months, as the band or artist must be scouted and assessed live, meeting them, seeing further performances, and letting the band meet with the rest of the company. The record's production and marketing costs must also be investigated before an offer can be made to the manager, after which a contract is negotiated with their lawyer before signing the deal.

When determining whether or not to sign an artist, various elements are evaluated including the quality of their music and its appeal. Additional factors such as star power, attractiveness, uniqueness and style, performance skills, future potential, and ultimately profitability are also taken into consideration by record companies.

Although the A;R process is generally consistent across countries and territories, differences may arise due to varying legislation, market conditions, industry size and population. Music is regarded as a commodity that requires marketing strategies to attract audiences to live performances or record sales. The significance of marketing is amplified by the potential for substantial profits generated by worldwide hits or successful artists.

Selling one's music is not the only concern, as selling a brand image is equally important. The role that Mass Media plays in conveying and promoting this image cannot be overlooked. The relationship between major labels and media outlets such as radio stations, TV channels,

and newspapers is a crucial aspect to consider. Marketing experts are employed by the music industry to constantly repackage recordings in order to make them seem fresh, exceptional, and modern. The associated costs are significant, which means that there are considerable risks involved, and therefore record labels try to minimise them whenever possible. Ultimately, musicians worldwide share the same goal of performing and recording their music.

In order to fund their recordings, artists require financial support, as the costs associated can be exorbitant. As a result, they must secure a contract with a record company and strive to obtain a fair agreement through negotiations. This dynamic creates a power balance between artists and record labels, and unfortunately, the music industry has a troubling history of disputes and abuses, often centered around copyright concerns.

Record labels hold significant power over musicians through contracts, which dictate album or single output and even impact content. The label's promise to record and release a record serves as a crucial aspect of the agreement for the artist. It's important to note that signing a contract also prohibits musicians from recording with other companies. Seeking legal counsel before entering into any agreements is highly recommended.

It is evident that the occurrence of this is in absurdly high measures. The copyright is the primary source of income in the music sector. Essentially, copyright refers to the right to reproduce. There are two variations of copyright available: publishing right (pertaining to the composition of music) via a publishing company and master right (pertaining to the sound recording of the song) via a record company.

It is apparent that large corporations with ownership over multiple copyrights are capable

of reaping double profits, a level of influence exclusive to these major companies. The United States Supreme Court determined in 1989 that if an agreement has not been established between the artist and the record label, the artist maintains the copyright. Accordingly, record companies generate revenue through royalties earned from copyrights, either mechanical (when copies are produced) or performance-based (when the recording is played or broadcasted).