Recording Company

A recording company is another term for record labels, which deal in the management, manufacturing and distribution of recorded musical media such as CDs and music videos. If a band wishes to have their music available for general release then they will usually have to be signed by a recording company, who will then be responsible for releasing music they create. When an artist signs to a recording company they will usually agree to what is required of them, a new band will usually sign a one album deal, whereby they are obliged to release one album for the recording company to distribute.

A recording company will make most of it’s profit from the sale of albums and singles, and they will pay the artist royalties for each sale. A recording company can also supplement their income through promotion of their artists concerts and tours, although the cost of putting a band on the road is usually very expensive.

There are currently four major recording companies operating, however many independent, or ‘indie’ record labels also exist. An independent record label will usually aim to release music that is not popular in the mainstream, or has a particularly niche market. Fans of a particularly genre of music who are very enthusiastic will sometimes start an independent record company themselves. Many major labels actively seek out a successful independent record company with the intention of buying them out.

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