Types of record label

This is a post researching the different types of record label. This was researched so that we could start planning what kind of record label our band would be under and how the record label and the artist would work together.

Record labels may be small, localized, and "independent", or they may be part of a large international media group, or somewhere in between. As of 2012 there are only three labels that can be referred to as "major labels". A "sublabel" is a label that is part of a larger record company but trades under a different name.

Major Labels

Major labels since 2012 (Big Three)

1. Universal Music Group
2. Sony Music Entertainment
3. Warner Music Group

Record labels are often under the control of a corporate umbrella organization called a "music group", which is usually owned by an international conglomerate, which often has non-music divisions as well. A music group controls and consists of music publishing companies, record (sound recording) manufacturers, record distributors, and record labels.  Record companies (manufacturers, distributors, and labels) may also comprise a "record group" which is, in turn, controlled by a music group. The constituent companies in a music group or record group are sometimes marketed as being divisions of the group.


Independent
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. The term indie label is sometimes used to refer to only those independent labels that follow an independent criteria of corporate structure and size, and some consider an indie label to be almost any label that releases non-mainstream music, regardless of its corporate structure.


Vanity Labels

Vanity labels are labels that bear an imprint that gives the impression of an artist's ownership or control, but in fact represent a standard artist/label relationship. In such an arrangement, the artist will control nothing more than the usage of the name on the label, but may enjoy a greater say in the packaging of his or her work. However, not all labels dedicated to particular artists are completely superficial in origin. Many artists, early in their careers, create their own labels which are later bought out by a bigger company. If this is the case it can sometimes give the artist greater freedom than if they were signed directly to the big label. There are many examples of this kind of label, such as Nothing Records, owned by Trent Reznor of Nine Inch Nails; and Morning Records, owned by The Cooper Temple Clause, who were releasing EPs for years before the company was bought by RCA.