AOB 5 - (Music Video) - Distribution and Ownership

The Big Three

These are the three major record labels, To be considered a major label you have to control 5% or more of the worlds music and video sales. The 'Big Three' control 70% of the worlds music market and 80% of the USA music market. Most of these companies are smaller branches of other big companies for example Sony BMG, Sony part owns this but also owns lots of other areas eg, manufacturing of electronics. These such companies will have a branch called the 'Music Group' this is the branch which controls the label and all the things that this involves. One of the reasons that a artist or band is to sign with a major label is because of the vast amount of money they have to spend on them. The contract which a major label offers will include the help with distributing and promotion of the artists music. this gives the artist/band a higher chance of fame and fortune. Like most contracts there are negatives because major labels take a huge amount of the profit, This is ok if the artist is more interested in the creative gain and not the financial. Labels also have quite a lot of creative control over the artist so they may not be able to follow the path they would like to take because if they are to go against what the label wants they could find them self being dropped. Major labels have a high turnover of artist, an if the artist doesn't do what the label wants they may find they get less attention, less money and less promotion so less interest from the public. Some of the artists owned by a Major Label start what is called a 'Vanity Label' this is parted owned by the major label but gives the artist more control over themselves.  This bridges the gap between major labels and independent labels. A vanity label is supported by a major label and will help with the promotion and distribution if it is needed. The vanity label will find fame trough its founder for example 'Apple Records' is founded by 'The Beatles'. These sort of labels benefit the artist and is parent label because both will gain money and popularity and also can both help each other.

Independent Labels are run completely without funding from a major label. Many new artist start on independent label because of the less corporate views it means that they can get noticed easier. Once a vanity label notices a act they like they can try and sign the act, this is the road to becoming a major star. A independant label wont be able to pump as much money into a band/artist as a vanity label or Major label but it dose mean that the band has full control over its creativity.