Record Labels’ New Approach
For the longest time, the whole music recording industry was dominated by four major labels, eating up to 70 percent of the whole music sales. As of 2005, independent labels only share 28.4 percent of total market sales share. However, with the advent of Internet piracy and file-swapping, sales of these labels, even the four giants, continue to decline for eight years now. This has posed a big challenge to the musicians and record labels as they used to rely on CD sales to make money from music.
Because of this very unfortunate reality, musicians opt for the now common and widespread 360 contracts. In a 360 contract, record labels gain sales percentages not just on record sales, but also on all activities of the artists, which would include endorsements, concerts, and soundtrack deals. Apparently, 360 deals are very beneficial to budding artists as record labels act more of a manager who takes care of the career of the said artists. The record label commits to promote the artists for a long haul and supports them to find new opportunities. It is really difficult to search for open doors and windows when one is just starting out a career in music. With the experience and wide client base of record labels, it would be much easier to establish one’s name in the music scene. So if you are planning to enter the music industry and succeed in the long run, consider partnering up with a major label now.
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