Pros and cons of independent & major record labels

Major Record Labels: PROS

• Major record labels such as the 'Big Three' are often conglomerates with huge amounts of money. This financial strength means they are able to invest in the artist and the production & promotion of their record without the need to recoup this investment.

• Majors are often able to get preferential deals on manufacturing & advertising amongst other costs.
• Their stature, as well as connections with other established corporations and outlets in the media industry means that the record label is easily able to advertise the artist through festival appearances, slots on TV shows and print ads in magazines and other publications.

Major Record Labels: CONS

• The biggest issue with majors is often the amount of control that they maintain over an artist and their work: for instance, the label will keep any rights to a particular song, and have full control over whether they sell it and who they sell it to. Meanwhile, multi-album deals often mean a loss of creative control.
• The enormous financial backing which major record labels provide can actually prove to be a negative, as the artist is indebted to a company who expect a return on their investment. As a result, artists are under huge pressure to deliver this for fear of losing their contract if they fail to do so.
• Majors have been accused of putting business before music, with many in large labels concentrating on money rather than a love of music.

Indie Record Labels: PROS

• The main positive of indie record labels is perhaps their respect for an artist's music, and they almost always sign artists as they are a fan of their music, rather than for commercial success. They are also usually able to work with whoever they want.
• Indies don't put the same degree of pressure on artists, and have much better working relationships between managers and artists due to far smaller staff numbers than majors.
• Deals with indie labels are far more beneficial for the artist, giving them creative control, freedom of expression and, often, a relatively simple profit-share agreement as opposed to complex long-term, multi-album contracts.

Indie Record Labels: CONS

• The biggest issue with indies, on the other hand, is without doubt money. Despite many indies being in the black, others are just staying afloat financially; lacking a large recording budget and unable to fund decent marketing.
• Smaller staff can be a negative aspect of indies, as there are fewer employees to deal with the multiple aspects of production and promotion required for an artist.
• Smaller staff often means informality, which - whilst being a positive in terms of working atmosphere - can potentially lead to disorganisation within the company.