Why Are Artists Creating Their Own Labels to Release Music?

In recent years, there has been a notable shift in the music industry: a growing number of artists are deciding to release their own music under their own record labels instead of relying on traditional major labels. This trend, which began with independent artists, now includes big names in music who seek to have greater control over their careers and creations. But what motivates artists to take this step?

In this blog, we explore the reasons behind this trend and the benefits artists gain by creating their own record labels.

Creative Control and Ownership of Recordings

One of the main reasons artists are creating their own labels is to have greater creative control over their music. Under traditional contracts with major labels, artists often have to give up control of their recordings, which means the label decides when and how songs are released, what songs are included on an album, and even the artistic direction the artist should follow.

By creating their own label, artists can make all the decisions related to their music. This allows them to experiment with their sound, release music whenever they want, and maintain the artistic integrity of their work.

Intellectual Property

In addition to creative control, having their own label also allows artists to own their recordings. In a traditional contract, the label typically owns the master recordings, which means it controls how those recordings are used and receives the majority of the royalties generated by them. By owning their own label, the artist retains the rights to their recordings, allowing them to receive a greater share of the profits and decide how their music is exploited.

Financial Freedom and Greater Revenue Share

Another key reason to create their own label is the financial freedom it brings. When artists release music through their own label, they don't have to share profits with a traditional record label. This means that, while they may face higher upfront costs in producing and distributing their music, they can, in the long run, receive a larger share of the royalties and other income generated by their music.

Moreover, by owning their recordings and not having to meet the conditions imposed by a label, artists can explore different revenue streams. They can negotiate licensing, synchronization, and distribution deals more favorably, ensuring that most of the money generated by their music returns to their pockets.

Notable Examples

Karol G is a recent example of an artist who has opted for this route. With her label Bichota Records, Karol G has taken control of her music career, maintaining a collaborative relationship with Interscope but without giving up the rights to her recordings. This has allowed her to maximize her income and have the freedom to direct her career on her own terms.

Innovation in Distribution and Marketing

Creating their own record label also offers artists the opportunity to innovate in how they distribute and market their music. Streaming platforms and social media have democratized music distribution, allowing artists to reach their fans directly without the need for intermediaries. Having their own label allows artists to explore new marketing and distribution strategies that may be more aligned with their vision and the expectations of their fans.

Direct Marketing Strategies

With their own label, artists can implement direct marketing strategies, such as social media campaigns, surprise releases, or strategic collaborations, which may be more difficult to achieve under a major label. This flexibility allows artists to maintain a closer connection with their audience and quickly respond to market trends.

Diversification and Brand Expansion

Finally, having their own record label also allows artists to diversify their activities and expand their brand. A personal label is not only a platform for releasing music but can also become a vehicle for other creative and business projects. Artists can sign other talents, launch special projects, or even explore other areas such as fashion, film, or digital content production.

Creating New Businesses:

Artists like Rauw Alejandro have used their label, Los Sensei, not only to release their music but also to support and promote other artists. This not only diversifies their income sources but also allows them to have a broader impact on the music industry by helping other artists achieve success.

Conclusion

The creation of personal record labels is a trend that is redefining the music industry. Artists are increasingly seeking to have full control over their music, finances, and the direction of their careers. This allows them to maintain artistic integrity, maximize their income, and explore new opportunities in an ever-evolving music market. As more artists take this path, we are likely to see a continued transformation in the way music is created, distributed, and consumed.