Independent “indie” Music Record Labels:
Pros:
- Artists Get The Rights To Their Music: This is a vast benefit of signing a contract with an indie label. By being allowed to keep the rights to the music, artists have the option to do what they would like once the song has been recorded. With the growth in exposure of independent artists, opportunities of a hit single being reused for commercial use (movie, TV and video game soundtracks) is increasing.
- They Sign an Artist Because They ACTUALLY Love Their Music, Believe In the Music and the Brand: Indie music labels are smaller companies who are not pressured by a board of directors to sign a specific sound or promote a specific look just for success on the charts. Typically when you are sign a contract with an indie label, they trust that your brand will sell, and work to promote you, not an image that they create for you.
- Close Personal Relationships: Independent record labels tend to have much smaller artist rosters than the larger, major record labels. This allows an artist to get the attention he/she needs.
- Pro-Artist Contracts: Although some of the bigger indie labels use contracts that are close to those of the major record labels, they are usually less complex. The indie label contracts are known to be more artist-friendly, giving the artist more money for their work through either profit-sharing programs or simply a larger royalty percentage than given by the major labels.
Cons:
- Lack of Funds: This is a common problem for independent labels, being that they do range so greatly in size and success is funds. A lack of funding means a smaller budget for recording, production of packaging and distribution costs. Not to mention, tour support, merchandise and etc.
Major Music Record Labels:
Pros:
- Excessive Amounts Of Funds: Major labels have far greater amounts of funds at their disposal than indie record labels do. This extra money means that the major labels will be able to fund high-quality production, packaging, global physical distribution as well as digital distribution through the major online outlets, world tours, and music video shoots.
- Networking and Connections: major labels have made lots of connections in their many decades of being around. Their even deeper pockets allow them to get their foot in the door to most media outlets.
- Size and Reputation: Obviously size can make a significant difference when dealing with the biggest names in music. It may be harder for some of the smaller indie labels to influence, say, Rolling Stone magazine to do a review of their newest artist’s debut album. Yet, due to the size and reputation of the major record labels, Rolling Stone would be more willing to do a review of a new artist knowing that it opens up doors to get the interview from a big name later down the line.
Cons:
- Must Fight For Attention: major labels do sign many artists, but much of what is signed quickly gets turned over. If your music doesn’t get taken in by an audience immediately, you may find yourself having a hard time getting any attention from the label. If this happens, you may find yourself spending more time in a battle for attention than working to further your career.
- A Lack of Creative control and royalties: Being that major label record companies are a business, they will likely do everything they can do profit as greatly as possibly from their investment in you, your music and your brand. Not only does this mean the possibilities of small royalties, but it means the artist does not get to keep the rights or even the creative control over the music.
Pokovsky 