Inside the Structure of a Record Label

Many upcoming artists dream of the day they get signed to a record label that has the resources to push and invest in their music. Although having a record deal is no guarantee of success, it increases the chances, so long as it is the right label for the artist and the music. That being said, many artists are understandably unaware of how record labels are structured, as artists focus more on their craft and not the business side of the music.

However, record labels are structured to focus on both (the creative and business side), and knowing how a label should be structured is essential. The knowledge may help an artist in identifying a record label that does not have a proper structure and may not be a label that may adequately exploit the artist and his craft. The system may differ from label to label, but there are specific departments and organisations which every label will have.

1.            The Artist and Repertoire Department (A&R)

  This department can be regarded as the factory – where the products (i.e., artists) are manufactured or made. They are charged with discovering new talents to be commercially exploited by the label. As a result of this, they are always on the lookout for new talents. In times past, they were always at shows, looking out for unsigned talents. Nowadays, whilst they still do this, they also scout the internet for new talents. As an artist, you should always create content showcasing your skill, as you never know who is watching.

 They also are in charge of choosing and assisting collaborators on a song, such as producers, session musicians, feature artists etc., and also in the music selection that will be released. They offer creative input to assist the direction of the song by the artist. Lastly, they act as the liaison between the artist and the label. They are the bridge between music/creativity and business/commerce. In some labels, the A&Rs also offer artist development to the artist, whilst some labels have a different department solely for that.

2.            Legal and Business Affairs

Here, the business/commercial side of music is dealt with. This department is tasked with ensuring the label has the money needed to run its operations and to look for ways for the label to gain more money and reduce costs. They deal with bookkeeping, negotiation of contracts, finance, estimation of the business, etc. They also deal with partnership opportunities between brands and the label or the artists.

 Also, the legal arm deals with all contracts and commercial agreements the label gets into, e.g., album clearance, licensing deals, recording agreements etc. This must be gotten right, as the label makes money from the exploitation of the intellectual property of its artists. If said intellectual property is not well protected, it inhibits exploitation of same and makes it harder for the label and artist to see returns.

3.            Marketing Department

The goal of this department is to exploit the products of the artists. No matter how great a song/album is, if it is not well marketed, people will not know about it. The marketing not only lets you know about the artist’s songs/albums but also creates strategies to get the public interested in the artist and their products, i.e., the songs/albums. They coordinate the plans for promotion, sales, and publicity.

The marketing team is usually involved in determining the songs that are released, as they are the ones who understand the customer’s interests and what the consumers would usually like to hear. They utilise data available from DSPs and the likes to identify target demographics and then come up with strategies to exploit the interest of the demography in the artist.

4.            Publicity

This department handles the way the public views the artist of the label. They are responsible for getting the word out about the artists, which will improve and better their image and reputation in the eyes of the public. They do this through newspaper articles, blogs, radio and television interviews, etc. They also arrange for photoshoots to convey the desired message and create an image of the artist to the public.

The ultimate goal is to increase public awareness of the artist & everything that surrounds them. They look for opportunities with the press and media (including social media platforms) to achieve this. Keeping the artist in the public’s mind increases their popularity, which can improve the exploitation of their intellectual property rights.

Other departments which may feature in a record label include the accounting department (which sometimes is merged with the business department), which deals with royalty collections, handling the finances etc. There is also the new media department (which is recent), sales, art development, artist development, etc.

Some of the above departments are not stand-alone in some labels (depending on the staff and financial strength of the label) and are merged with other departments. For example, the artist development may be combined with the A&R team, while the art development team may be integrated with the publicity department.

As the world evolves, innovation and technology bring about new opportunities for the exploitation of artists and their intellectual property. As such, this will lead to businesses reacting to these new opportunities. This has been seen even in record labels, where labels now have new departments such as New Media, which deals with innovations created from technology, such as streaming platforms, NFTs, etc.

In conclusion, an artist is better off at a record label with the appropriate know-how, workforce, and skill to properly exploit the artist and his intellectual property.

Inside the structure of a record label

Lastly, stay up to date with all you need to know about African music at S.O.A., right here.