Although the music business changes with alarming speed, one thing remains constant: The record label's responsibility isto its artist's music production and to the marketing and sales of the music. Each label seeks out recording artists they feel will appeal to a wide audience, which, in return, will allow the label to sell a lot of music. The label then negotiates a recording contract with the particular artist. The contract outlines the artist's responsbilities to the record company as well as the company's responsibility to the artist, such as royalties. The label specializes in helping their artists develop the highest possible sales potential through marketing the artists and their music via the Internet, radio play, and television video networks and shows, and then selling their music through a vast array of audio and visual distribution outlets, such as Internet and iTunes and ring tones.
The record label-artist relationship is co-dependant. The reason an artist signs with a record label is three-fold:
1 - Firstly, the label advances the artist money to pay for recording their music, aswell as for album artwork and marketing campaigns such as videos and commercials. It may also go towards basic living expenses. It has become increasingly prevalent for the label to negotiate deals that involve merchandising.
2 - Secondly, an artist will sign to label due to their vast array of contacts in the music industry, as well as their know how in the business arena. Labels develop and market artists and act as a mentor.
3 - Thirdly, the label's prestige is an important factor. Record companies are reliant on artists putting out their albums and artists rely on them too. Labels exist only to promote the artists vision as long as that vision conforms to the label's goal of achieving financial gain through music sales.
Record Company's Role in the Video Project
Although creating music videos is a team process, each record company operates differently. While every department within a label has a specific role in the process of creating the music, certain departments are more involved in the video process than others. Every record company has an Artist & Repertoire department where its executives seek out new talent and sign them to a contract to record exclusively for their label. In return, the artist receives the guidance and financial backing of the A&R team, in addition to sharing in the profits the artist makes for the label. Some of this allows the artist to write, produce and record their music. Some A&R people get involved in the video process and some do not; it depends on the persons, the relationships and the label.
