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Also called a "label," it is an enterprise whose business activities may include:
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Record companies may be large (majors or
minors) or small. Small record companies have limited release
objectives and capabilities.
It is the business of the record company
to exploit the rights they acquire with the intention of making
a profit. As the proprietor of these rights they administer the
related business and financial aspects concerned.
The rights appropriated by the record company
from the artist are defined by written document. This document,
called a recording contract, contains many clauses because it
covers a wide range of agreement.
Record labels are best categorized by listing them with regard
to their major record distributors.
See Cross-links: MAJOR RECORD DISTRIBUTORS/MAJOR LABELS LIST,
RECORD COMPANY under "Custom Label," CORPORATION
under "Multinational,"PRODUCTION DEAL,
RECORD MANUFACTURER, RECORD OVERSHIPMENTS, RECORD DISTRIBUTOR,
RECORD RESERVES, CONTRACT--RECORDING
CONTRACT.
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A and R Person:
A person employed by a record company to
find new "artists and repertoire," i.e., performers,
composer/performers, and musical compositions. Often, the A and
R person is the record producer for one or more of the artists
he locates. He listens to CD demos (the majors receive over 200
demos per week) and follows up on tips or leads from constituents
and friends. He may also perform the job of matching new material
with company contracted artists and producers. In this capacity
he works closely with the music publisher. He is the music publisher's
contact for upcoming projects pursued by the label. See Cross-links: ARTIST,
PRODUCER.
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Big Independents:
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See Cross-links: MAJOR RECORD DISTRIBUTORS/MAJOR LABELS LIST,
CORPORATION under "Multinational,"
RECORD COMPANY under "Big Independents," "National
Record Company," "Minors," and "Small Independents."
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Minors:
Record companies that are smaller than
majors but maintain the capability to release, promote, and distribute
records on a national level. See Cross-links: RECORD
COMPANY under "Custom Label," "Majors," and
"Small Independents."
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National Record Company:
A record company that releases records
on a national level. It pays for records manufactured and distributed
and sometimes for recording and promotion. See Cross-links: COMPANY,
CORPORATION.
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Record Company Income:
Total receipts realized
by a record company from all income sources, e.g., from phonorecord,
multimedia and video sales, from the licensing of masters to record
clubs or film producers, from the merchandising of the artist,
from the manufacturing and distribution of other labels' products,
from publishing music, or from renting out their own recording
studio, etc.. See Cross-links: INCOME
under "Gross Income," ROYALTY,
TAX LAW.
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Small Independents:
Record companies, smaller than majors and
minors, that have limited release objectives, promotion capabilities,
and distribution facilities. See Cross-links: RECORD
COMPANY under "Custom Label," "Majors," and
"Minors."
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