Record Labels Vs. Music Groups

Hello All Bloggers & Readers Alike,

The inspiration for this week’s topic is derived from assignment research (Not everyone goes on Wiki and just site the references at the bottom of the web page.) This month, my degree program coordinator adjusted Intro to Marketing in my schedule, and I am ever so grateful, because that’s the entire reason I began this blog. Last week in the course, we had to options for choosing market research for an established company between entertainment types. Needless to say, I chose a Record Company to research. Of course I did.

However, to my surprise many, many writers, editors and journalists did not understand the difference or separate concepts between a Record Label (hereinafter “Label”) and Music Group...

It made me think to an upcoming meeting topic of the band I manage – the difference between my company and what we do, and other companies and what they do. As Band Management, I am the Managing Member and President of an Entertainment Consulting company to which this band is signed. It’s in the title, we consult, but we are still mistaken as a label or music group or arts collective, and the list goes on.

Hopefully, this article will set the record straight between the two, Labels and Music Groups, and more students will have more proper references to research they conduct (and more writers will have a better understanding of what they write.)

To begin, different Artists and Bands can be signed to different recording labels, but be apart of the same music group. For example: Rick Ross and Wale, American rappers/lyricists, are signed to the different Recording Labels, but apart of the same Music Group. Rick Ross is signed to Def Jam Recordings and Wale is signed to Warner Bros Records, but they are both apart of Maybach Music Group (Just an example, this is not the only case.)

What is a “Record Label?”

According to About.com Music Careers, a Record Label is recognized as a company that manufactures and distributes recorded music and promotes said music (either directly or indirectly). It should be noted, there are different types of labels: Major and Independent.

Major Record Labels are large corporations owned by a parent company, like Sony or Universal. Major labels are primarily recognized as the Big Four – Sony, Universal Music Group (UMG), Electric and Musical Industries (EMI) and Warner Music Group (WMG). Combined, these four companies make up about 75% of the American music market depending on the year.

It should also be noted that Artist could sign to the central label or a subsidiary label to have staff and manage financial decisions. (McDonalds, 2012) For example, Kanye West signed to Roc-A-Fella Records. Roc-A-Fella records is a subsidiary of Def Jam Recordings, which is apart of Island Def Jam Music Group (IDJMG) and essentially Universal Music Group – of whom Seagram’s is the parent company of. In respect, major labels have a "complex" hierarchal structure, which differs from label to label. Sometimes, distribution is offered to independent labels through major labels.

Independent Record Labels (Indie Labels or "Indies") are companies without a corporate backing. Just because labels don’t have a corporate backing, does not mean they produce music of any less quality than Major Record Labels. Actually, if you need extra motivation, Indies are Number 2 in Gross Revenue under Universal Music Group and over Sony/BMG. (Cole, 2012) 

I say: the tip to drive an independent label’s success is finding one niche in Artist services and continually market and develop that niche as the label grows.

Hey, Wiz Khalifa and Mac Miller are currently apart of an independent label, Rostrum Records – A label that focuses on Artist Development. 

However, just because you are a indie label, don't mean your company is a music group, or vice versa.

So, What’s a “Music Group?”

The Free Dictionary recognizes a music group as nothing more than an organization of musicians who perform together. Could it really be that simple? Maybe. But how would you explain Universal Music Group and other large non-recording label corporations? Pulling from many different sources (and not-so-common sense), here’s my definition of Music Group: an organization of individual Artists, Bands and Recording Labels that exuberate qualities in Artist Services, Management, Song Publishing, Distribution and Corporate Affairs. With this definition, it would make sense that people from two different labels, with two different parent companies, to collaborate as a music group and not have any legal disputes with song royalties, publishing rights, etc.

Although I have all this information, I still can’t figure out if Kanye West’s G.O.O.D. Music is Recording Label or Music Group or neither. Maybe if we can catch an interview…

Read. Converse. Enjoy.

Cherry

References:

Artists. (2012). Island Def Jam. Retrieved from: http://www.islanddefjam.com/artists/default.aspx?labelID=74

Artists. (2012). Warner Bros. Records. Retrieved from: http://www.warnerbrosrecords.com/#/artists?page=9&ajax=1

Cole, M. Major Labels See Decline In Global Market Share As Independents Grow. (2012, May 4). Complex Media. Retrieved from: http://www.complex.com/music/2012/05/major-labels-see-decline-in-global-market-share-as-independents-grow

Interscope Records. (2012). Universal Music Group. Retrieved from: http://beta.interscope.com/#!/interscope/all

McDonald, H. Big Four Record Labels. (2012). About.com. Retrieved from: http://musicians.about.com/od/musicindustrybasics/g/BigFour.htm

McDonald, H. What Is A Label. (2012). About.com. Retrieved from: http://musicians.about.com/od/ip/g/recordlabel.htm

Musical Group. (n.d.). Farlex, Inc. Retrieved from: http://www.thefreedictionary.com/musical+group

Rostrum. (2012). Rostrum. Retrieved from: http://www.rostrumrecords.com/