Types Of Labels | CULTUR:ED

Types of Record Labels isn’t the same as deals. Clear as day right? I think the key insight here is knowing that two different artists can have two different deals within same type of label. Based on valid, adequate factors concluded by two parties consciously.

1. Major Labels

• Big global companies with huge resources

• Often own your masters if you sign

• Offer: marketing, radio, playlist pitching, advances

• Examples:

• Universal Music Grouo

• Sony Music Entertainment

• Warner Music Group

• Pros: huge exposure

• Cons: less control, smaller % of royalties

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2. Independent Labels (Indie Labels)

• Smaller, flexible companies

• Often better contracts for ownership

• Offer: niche marketing, community support, branding help

• Examples:

• Domino Recording Company

• Sub Pop

• Pros: more control, personal attention

• Cons: smaller budget, slower growth

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3. DIY / Self-Releasing

• You act as your own label

• Keep 100% of masters and publishing

• Distribute via platforms like DistroKid, TuneCore, CD Baby

• Pros: total control, keep all money

• Cons: you handle everything: marketing, distribution, legal, promotion

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4. Label-Lite / Distribution Deals

• Companies that act like a mini-label

• Offer marketing support, playlist pitching, strategy

• Take 10–30% of revenue

• You keep your masters

• Examples:

• AWAL

• United Masters

• Pros: support without losing ownership

• Cons: smaller % of revenue than full DIY

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5. Specialty / Niche Labels

• Focus on a specific genre or scene

• Can be indie or major-affiliated

• Great for communities, underground credibility

• Examples:

• Ninja Tune

• HyperDub

Label Types & Deals:

1. Major Labels

Deals:

• Standard Record Deal (Traditional 360 deals common)

Ownership:

• Masters usually owned by the label

• Publishing can be separate (if you have a publisher)

Revenue:

• You get a royalty % of sales/streams (often 10–20%)

• Label keeps majority + recoups advances

• 360 deals: label also takes % of touring, merch, sponsorships

When it’s used:

• Established artists with proven fanbase or viral potential

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2. Independent Labels (Indie)

Deals:

• Standard Indie Record Deal

• Licensing Deal (label promotes & sells for a limited time)

Ownership:

• Often you keep masters, or label co-owns

• Publishing usually stays with songwriter

Revenue:

• Split depends on contract (often 50/50 or 60/40 favoring artist)

• Label recoups marketing costs if agreed

When it’s used:

• Early to mid-career artists, niche markets

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3. DIY / Self-Releasing

Deals:

• None — you’re your own label

Ownership:

• Masters: 100% yours

• Publishing: 100% yours

Revenue:

• You keep all money after distributor fees

• No advances, no recoupment

When it’s used:

• Artists who want full control or are building their fanbase

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4. Label-Lite / Distribution Deals

Deals:

• Distribution + Marketing Deal

• Sometimes called “label services” deal

Ownership:

• Masters: you keep them

• Publishing: you keep it

• Label-lite just takes a % of revenue

Revenue:

• Label-lite takes 10–30% of streaming and sales revenue

• You get the rest

When it’s used:

• Artists growing past DIY but not ready to sign major

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5. Specialty / Niche Labels

Deals:

• Licensing or mini-label deals, usually project-based

• Often very flexible

Ownership:

• Masters: shared or retained by artist

• Publishing: stays with songwriter

Revenue:

• Split negotiated depending on project

• Usually smaller amounts but more exposure in niche

When it’s used:

• Experimental genres, underground scenes, electronic, jazz, etc.

Important nuance

We don’t have the exact contracts — and in independent music, label terms vary a lot. But two things are very likely in this setup:

Most official label releases are label owned masters

The label controls those recordings and their distribution

Artists usually retain publishing rights

Songwriting income (performance and mechanical royalties) still goes to the writers/publishers unless they signed that away.

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