Why Are Record Labels Important for You in 2024?

The globalization of the music ecosystem gives artists new options to establish their presence, build a community of listeners, and have a powerful start to their careers. Today, most artists prefer self-promotion due to many tools and resources, especially when it comes to social media. However, record labels are still valuable and they made a significant impact on music promotion and musician’s career overall. If you wonder how cooperation with record labels would change your status on the global stage, check out our article. By analyzing several examples from the past and providing key metrics over the last few years, we will show you how record labels impact the promotion and strength of musician’s presence on the global stage. Moreover, you will see what record labels do musicians prefer today, and how it impacts.

Universal Music Group is considered the most powerful and the most reputable record label in the industry.

However, people often forget about a major element - a record label. Individuals forget about these companies, but in most cases, these formations are the ones that push creators to success. Simply put, record labels are brands responsible for music creation, distribution, and promotion. Record labels set contracts with artists and their managers to distribute their songs. Sometimes, they also search for new talents and give them a breakthrough push.  Still, are record labels so important today? Let's find out.

Here are key metrics showing how record labels impact the industry, making a difference and increasing the number of streams and global revenue.

How Record Labels Made the Difference in the Past

Back in the days, when recorded music was established, record labels worked as bridges between artists and the music industry. With their help, individuals received recording opportunities, were able to attend recording studios, and even provided inside about the music industry. Moreover, record labels created several recording technologies, delivering leading-edge equipment and revealing effective music production methods. Despite rapid technological progress, giants like Universal Music Group keep working with world stars like Kendrick Lamar and Selena Gomez, as well as working with rising stars. Record labels still provide value for musicians, helping artists with promotion and distribution. Despite the rising popularity of paid promotion services and multiple free promotion options (for example, via social media), people need record labels to make a name in the industry.

To have a better understanding of how record labels can change careers, let's have a look at some cases.

Taylor Swift's Story with Universal Music Group

In 2005, almost 20 years ago, when this company was named Big Machine Records, it signed Taylor Swift, who was a teenage singer. It wasn't just a mentorship. The record label invested in Taylor and helped her release her debut album. It hit several records, making her famous and helped her become who she is today. Their partnership ended in 2018, and now she is re-recording her old albums. This "remaster" only shapes her career, so the popularity level keeps growing. 

Dr.Dre and Interscope Records

One of the most famous rappers didn't achieve his popularity for nothing. He made it with N.W.A, but after that, his fame went down due to disputes with Death Row Records. Later, he founded Aftermath Entertainment, a subsidiary company of Interscope Records. This record company is associated with the new chapter of his career and symbolizes Dre's meeting with Eminem. Aftermath Entertainment signed Mr. Slim Shady in 1998, and both rappers' careers rose. The Interscope Records Label became famous, and Eminem became one of the most influential rappers with best-selling tracks and albums. Interscope Records also signed with 50 Cent and Kendrick Lamar, but today nobody would remember how these stars became who they are today.

Kanye West and Roc-A-Fella Records

Kanye West made a name in the industry as a successful music producer, but nobody recognized him as a rapper. Everything changed when he was signed by Roc-A-Fella Records, a hip-hop record label founded by Jay Z and Biggz in 1994. The company's name comes from an idiom meaning a rapper is dominating his opponent ("rocking a fella"). In the early years, Jay Z was the company's only artist, he didn't become famous immediately and earned his industry value slowly.

Later, in the early 2000s, especially after signing Kanye West, the company faced a big lift. West's first album was commercially successful, as he launched he successfully launched his rap career and became one of many personalities who changed modern music forever. "What I would do if I didn't win? I guess we never know."

The Financial Aspect of Record Labels

Record labels are not just about connections with industry professionals and promotion. These companies also provide financial aid as well as help musicians get on track and navigate through the music business. Success is impossible when you only have a huge amount of money. You must know how to distribute funds, organize music marketing strategies, and get heard on tier-1 streaming services. Besides direct financing, artists can sign sponsorship deals to become official representatives of the record label, promote merch, and use other opportunities to monetize to get additional income.

Why are Record Labels Important for Musicians?

Labels are companies not only for classic promotion. These are strong brands that push you to a new level and help you make more connections with top artists. Labels have established relationships with music-related media, radio stations, and other platforms that help musicians establish their presence. Moreover, a major label is an established brand recognized by artists and listeners. When people see that you release music under the label, they understand your weight in the whole industry. Such credibility opens doors for collaborations not just for mutual promotion but for mutual releases and even joint performances on big stages. Moreover, if a label helps an artist become recognizable, it's also a plus to a company, as more beginners will be willing to be signed.

If you are an independent artist still acting on your own without a record label, Artist Push is a powerful tool that will help you effectively promote your music and get it heard by a wider audience. It will be a solid step building a strong personal brand and making a name in the industry. Our approach will change the stats of music streaming on your profiles and help you get your tracks on the top spots of all charts. The power of social media may not be enough, especially if you are expanding your audience, so it's important to use organic paid promotion to get more streams, listeners, and engagement. The more visibility your content has, the better.