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The boundaries between major and independent labels, and the definitions of each, differ from commentator to commentator. In practice, however, the traditional definition of a ‘major’ record label is one that owns its own distribution channel. Some independent record labels, in particular those with successful performing artists, sign dual-release agreements and make other deals with major labels and may rely to some extent on international licensing deals, distribution agreements, and other arrangements with major record labels. Major labels may also wholly or partially acquire independent labels.

Today, big music can seem like the only game in town and many newcomers think the only way into the industry is “getting signed”, getting a “recording contract” or “record deal“(ref The Music Business Has Changed What about You). Musicians working locally cheerfully call themselves unsigned, unpublished, semi-pro, amateur, etc. rather than what they are Indie Music Professionals. But these DIY and indie acts are in the music industry every bit as much as the majors. Maybe more so. Although mainstream TV and radio is dominated by major label acts. The mass and diversity of local acts puts the handful of bland national icons in perspective. There’s a lot more happening outside the media bubble. But the influence of big business gets attention, and it’s easy to forget that what’s happening in music isn’t what’s happening on MTV, Clear Channel, or on the charts.

Other nominally “independent” labels are started and sometimes run by major label artists but are still owned at least in part by the major label parent. These spin-off labels are also frequently referred to as vanity labels and are intended to appease established, powerful artists and/or to give them latitude in discovering and promoting new talent.

According to Association of Independent Music (AIM) A “major” is defined in AIM’s constitution as a multinational company which together with the companies in its group has more than 5% of the world market(s) for the sale of records (CD) and/or music videos. The majors are currently Sony BMG, Warner, EMI, and the Universal Music Group (which incorporates Polygram). If a major owns 50% or less of the total shares in your company, you would not (usually) be owned or controlled by that major.

1. Tadel

   October 17, 2011 at 8:19 AM

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