record company

Article

July 6, 2022

A record company or record house, also known as a record label, record company or label, is a company that is dedicated to making music recordings, as well as its marketing and distribution. Some of these companies have their own recording studios and their own professionals, to search for the best sound in recording a music album as record producers. In addition, it is in charge of producing artists in any musical genre, launching new singers, providing what is necessary to promote them as music video production, uploading their music on streaming music platforms or digital stores, or failing that, manufacturing and distributing CDs, vinyl and cassettes (in countries where these formats are still profitable). They can also be in charge of giving promotion in radio, press, television and internet. Currently, the recording industry is changing its way of working due to unauthorized downloads on the Internet and the growing worldwide increase in CD and DVD piracy, to the point that it has made these promotional formats economically unfeasible in many countries (especially in second and third world countries), forcing record companies to implement new ways of selling and modifying artists' contracts to continue in the music market.

Record contracts

The contracts signed with the performers are generally to produce 2 or 3 musical works, if they have a good performance in the sale and promotion of their albums and singles, the contract is renewed as long as both parties agree. If for some reason the artist does not want to continue and decides to change the record company without their previous contract having expired, the record company proceeds to file a lawsuit alleging breach of contract, which is generally settled with the payment of a certain amount of money, forcing the artist to continue with the record company or the cancellation of the contract. Due to the worldwide decrease in the sale of record works, generated largely by piracy, record companies began to implement a new contract model called "360º Contract" which, unlike the conventional one, requires the artist to cede part of his profits, obtained by any activity in which he generates money; For example, if the artist performs a musical presentation, he must give a percentage of the profits to the record company; in exchange, the musical albums, singles or video clips produced by him become promotional objects fully financed by the label. The relationship between artists and record companies are not always good; sometimes, companies stop the publication of certain musical work considering it uncommercial or, sometimes, for reasons of censorship. There are also conflicts over profit sharing and who owns the rights to play songs.

Major Record Labels

Record companies are often controlled by international groups of companies owned by international holding companies. These groups of companies control publishing, recording, distribution and record companies. As of 2011, the three main groups of music companies (known as the Big Three) control 70% of the world record market and 80% of the US market.[1] Major stamps 1973-1988 RCA Records Columbia Records (CBS) MCA Records polygram EMI WEA (former Warner Bros. Records) Epic Records Island Records Sony Music Latin (popular in countries like Puerto Rico) Fonovisa Records (popular in Mexico) Major Labels 1988-1998 EMI Universal Music Group (former MCA Records) Sony Music (ex-CBS) Warner Bros. Records Polygram / Polydor BMG Music (ex-RCA and Ariola) major stamps