Research on Record Labels

Major record labels are ones that own their own distribution channel. Major record labels produce mainly mainstream music. Record companies and music publishers that are not under the control of the big three are generally considered to be independent even if they are large corporations with complex structures. Independent record labels release non-mainstream music, regardless of its corporate structure. Independent record labels are record labels operating without the funding from major record labels. Many bands and artists begin on independent record labels. Some independent record labels, in particular those with successful performing artists, sign dual-release agreements and make other deals with major labels and may rely on international licensing deals, distribution agreements, and other arrangements with major record labels. 

The Big Three record labels are the three major records labels. They are:

•   Universal Music Group

•   Sony Music Entertainment

•   Warner Music Group

•      Universal Music Group:

Universal Music Group is an American multinational company. Its leading market share has proved that it is the largest company of the Big Four Record labels. On 12 November 2011, it was announced that EMI would sell its recorded music operations to Universal Music Group.

•       Sony Music Entertainment:

Sony Music Entertainment (SME) is the second-largest global recorded music company of the "big three" record companies and is controlled by Sony Corporation of America. In 2004 SME were a joint venture with Bertelsmann Music Group to form Sony BMG Music Entertainment.

·      Warner Music Group:

Warner Music Group (WMG) is a US-based business group and family of record labels. It is the largest American-owned music corporation, and it is the third largest in the recording industry and one of the big four record companies.

Examples of independent record labels are:

•   Big Up Records

•   Candid Records

•   Grand Central Records

•   Trend Records

Subsidiary Labels:

Artists who are signed to a Big Four record label are either signed to the central label or signed to a subsidiary label. A band may be signed to Sony, or they may be signed to the Sony subsidiary label Columbia Records. These subsidiary labels have their staff and usually sign their own artists and make most of their own financial decisions. However, the "main" company sets their overall budget and makes decisions like reducing staff at the subsidiary.