From the course: An Insider's Guide to Today's Music Biz: 7 Record Labels

Labels are different

- The first thing you need to know about labels is this: not all labels are created equal. They come in all different sizes and shapes. At the top level, there are the big three major labels, Universal, Warner's, and Sony, that have huge rosters, huge staff, huge resources, and offices around the world to help them distribute and market their music. In addition to those major labels, you have what are known as independent labels. Unlike those major labels, they're typically owned and run by the founders of the company. In many cases, these independent labels have relationships with the major companies for certain services like marketing, radio promotion, or distribution. In some cases, they're true standalone operations. Labels have different approaches to signing talent. Some sign talent across all genres. Some focus on a particular genre like punk rock, or hip hop, or jazz, or country, or heavy metal. The majors typically sign in every genre. Then there are the little mom and pop labels out there that are fueled more by passion than real resources and really aren't much of a factor in the real music business. No matter whether you're a major label, an indie label, or some kid in a dorm room that started a label, you're going to need four key elements to be successful in the record business. You'll need experience, you'll need expertise, you'll need infrastructure, and finally, you're going to need lots of money to be successful. Without that, you don't have a chance.

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