Record labels play a huge role in the music industry. They not only produce the songs they also discover new talents keeping the industry running.
After they sign a deal with a musician, they take care of all the aspects of their music like, production, record manufacturing, distributing, marketing, enforcing copyright, and all.
The origin of record labels
Record labels are in existence for a very long time. It all started with records. In old days, people had no access to music at home. They could only enjoy live performances. After the invention of record players people could listen to their favorite music anytime they want at home.
In 1904, Victor Talking-Machine Company made a deal with an artist, and thus the first record deal was made. The artist was paid $4000 per song and $0.40 for every sale. Soon many record labels were established the music industry flourished along with them.
As the companies wanted to display their names alongside the artists on the records, they are known literally as record labels since then.
The big record labels:
The biggest record labels in the world are mostly owned by big companies with different other businesses. Some companies truly focus on music and make immense progress in the music biz. But many times, the companies cannot carry on with the music aspect of their business due to other engagements and sell off the label and everything that comes with it. That is why you may see a lot of changes in the name and their business styles among record labels.
Currently, there are only three big record labels in the United States. The number is so low due to various mergers of companies over the years.
The big 3s
The three big companies are Universal Music Group, Warner Music Group, and Sony Music Entertainment. These three controls most of the music market in the States right now.
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Universal Music Group
Universal Music Group or UMG Recordings Inc is an American company with most of the shares now owned by French media corporation Vivendi. PUBG-famed Chinese company Tencent also owns some shares. They have numerous labels and brands under their roof. They have business in more than 40 countries outside the US. The most popular record labels in the country come under their umbrella. They are:
- Def Jam Recordings
- Interscope Geffen A&M
- Republic Records
- Universal Music Group Nashville
- Universal Music Publishing Group
- Universal Music Enterprises
- Universal Music Latin Entertainment
- Spinefarm Records
- Capitol Music Group
- Verve Label Group
- Island Records
- Polygram Entertainment
- Fame House
Universal Music Group is the biggest music company in the world. They have the largest number of artists signed with them.
The company was founded as Decca Records in 1934. In 1939 it branched out and in 1962 it merged with MCA. Japanese company Matsushita Electric bought MCA in 1990. In just five years most of the shares were bought by Seagram and they renamed the label Universal Studios, Inc. the music section of the company was named Universal Music Group.
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Warner Music Group
Warner Music Group is also a big music company with many successful labels under its brand. The most popular ones are:
- Warner Records
- Electra Records
- Atlantic Records
The company has headquarters in New York City. They were available for trading on the New York Stock Exchange from 2005 to 2011. Access Industries purchased the company in 2020 and it became a public company again.
Warner Brothers film studio established Warner Music Group when one of their actors, Tab Hunter reached number one spot with his song. He was signed with Warner Brothers for his acting but for his music, he was signed with Dot Records, owned by their rival studio Paramount Pictures.
Warner Brothers then decided to open a record label as well to keep Hunter solely under their roof. They bought Frank Sinatra’s Reprise Records and stepped into the music biz. The label has gone through many ownership changes like others and secured its place in the big 3 with successful deals.
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Sony Music Entertainment
The record label is a part of Sony Music Group with many successful and well-known labels under it. These labels are:
- Columbia
- Epic
- Arista Nashville
- Arista
- RCA
- RCA Records Label Nashville
Sony Music Group comes under Sony Corporation of America that is in partnership with Sony Music Holdings, Inc. and Sony Entertainment, owned by the Japanese giant Sony.
It was founded as American Record Corporation in 1929. After Columbia Broadcasting System acquired it in 1938, it was named Columbia Recording Corporation. After reorganization, it was renamed CBS Records in 1968. Sony bought the company 20 years later. After 1991, it was renamed Sony BMG and it finally became Sony Music after Sony purchased Bertelsmann Music Group.
Other significant record labels
There are many successful and popular record labels operating in the country and most of them are owned by the big 3. Here are the most important ones:
RCA Records
RCA Records falls under Sony Music Entertainment. It is the second oldest record company in the US. They cover different genres like R&B, jazz, pop, rock, classical. Hip hop, EDM, and many more. The biggest name that has worked with the label are Elvis Presley, Justin Timberlake, Britney Spears, David Bowie, Alicia Keys, Buddy Guy, Dave Matthews Band, and many more.
Interscope
Interscope is owned by UMG. It mostly covers hip hop and rap but now has branched out to pop, dance, alternative, and more. It was previously owned by Warner Music Group but they cut ties after some controversies. Some of the most iconic artists of the record are Eminem, Dr. Dre, Kendrick Lamar, Lady Gaga, Madonna, Maroon 5, Gwen Stefani, U, Selena Gomez, Billie Eilish, and more.
Def Jam Recordings
Def Jam primarily works with hip hop and urban music. Rick Rubin and Russell Simmons founded it and now UMG owns it. Their best artists are LL Cool J, Beastie Boys, Rihanna, Kanye West, Lady Gaga, and more.
Island Records
Island Records was founded in 1959 specializing in jazz music. UMG now owns the label. It was quite popular in the indie music scene in the 1980s and contributed a lot to the progressive music scene. The memorable musicians who have worked with the label ate Bob Marley, Amy Winehouse, Janet Jackson, Queen, Iggy Azalea Justin Bieber, Cat Stevens, and Tracy Bonham to name a few.
Atlantic Records
Founded in 1947, it mostly covered R&B, soul, and jazz music. The label worked with legends like Led Zeppelin, Otis Redding, Crosby Stills Nash & Young, Ray Charles, Aretha Franklin, Roberta Flack, and many more.
Virgin Records
Founded in 1972, Virgin Records is now owned by UMG. The biggest names worked with the label are XTC, Sex Pistols, Public Image LTD, Rolling Stones, Paula Abdul, the Spice Girls, and many more.
Independent labels
Not all record labels are owned by the big 3. There are many small and independent labels, that have achieved great success in the American music industry. These labels are more artist-friendly and offer better royalty pay compared to the big 3.