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RECORD COMPANY (RECORD LABEL)

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Also called a "label," it is an enterprise whose business activities may include:

1) Acquiring the rights to material (e.g., songs, master records, videos, etc.),
2) Locating and signing talent,
3) Securing mechanical licenses,
4) Producing master recordings,
5) Manufacturing end-user commercial recordings,
6) Releasing end-user commercial recordings,
7) Promotion,
8) Distribution,
9) Sub-publishing,
10) Publicity,
11) Public relations,
12) Accounting for royalties collected,
13) Reporting to the IRS on Form 1099--MISC certain royalties, independent contractor fees, salaries, commissions, interests, rents, pensions, medical assistance programs or health, accident, and sickness insurance programs, certain direct sales of consumer products for resale, and other compensations paid out. Each recipient is reported separately and the report must include the recipient's name, address, taxpayer identification number (social security number for sole proprietorships), and the total paid,
14) Paying the required employment and other taxes to the proper agencies, and
15) Distributing the proper royalty payments, accompanied by a royalty statement.

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:

Record companies with national and international distribution capabilities that are not as large as the majors.  See Cross-links: RECORD COMPANY under "Majors," and "National Record Company."
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Custom Label:
A small record company that handles only the recording (and sometimes the promotion) of a record, while contracting out the distribution.  See Cross-links: MINOR, DISTRIBUTION, RECORD COMPANY, RECORD DISTRIBUTOR, RECORD DISTRIBUTION, PROMOTION, PUBLICITY.
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Foreign Label:
The name of a record company, or the record company itself which is located in a foreign country.  See Cross-links: FOREIGN LYRIC WRITER.
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Majors:
Roughly speaking, the handful of top grossing record companies of the record industry. Or, more specifically, a record company that is owned by one of the major record distributors.

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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