Major and Independent Record Labels

The Main Differences Between Major and Independent Record Labels

One of the biggest differences between the two is that firstly the major labels will make their client (artist) give them the rights for their music as part of their contract. Therefore, leaving all the work to the label company. The Independent Record Label company's however will reach to an agreement with the artist through a contract to supply their funds and support them but wont actually get the rights for their music. With the rights, the artist is then free to sell any music in any amount he/she likes. For example; Radio, Soundtracks, Films, and TV. The major labels will offer a lot more money more often than not to have this extra power with their client which is why so many prefer to sign in a Major Label because it will make them "rich and famous".

Artists that sign with Major Record Labels earn around 15% royalty on their own music however artist that sign with Independent Labels earn between 40% - 75%.


The Big 3
The main 3 record labels are Universal Muisc Group, Sony Musis Entertainment, EMI and Warner music group. All 3 are USA based and take roughly 25% of the music industry market. EMI is a subsidary of the Universal Music Group.

Independent Labels

M.A.S Records, Mad Decent and XL Recordings are all independant compamies, these 4 companies control much smaller amounts of artists but the buisness itself still works in a similar way to the Big 3.