In the music industry, a record label is a brand and a trademark associated with the marketing of sound recordings and music videos. A record label is also a company that manages such brands and trademarks; coordinates the production, manufacture, distribution, promotion, and enforcement of copyright protection of sound recordings and music videos; conducts A&R; and maintains contracts with recording artists and their managers. The term derives from and describes the round paper labels affixed to the center of gramophone records; such labels typically contain a trademarked logo and information about the sound recording and the companies involved in creating the product.
Terminology and business structure
When a label is strictly a trademark or brand, not a company, then it is sometimes called an imprint. An imprint is sometimes marketed as being a project or division of a label company, even though there is no legal business structure associated with the imprint. Sometimes an imprint is marketed as being a division of a label company's principal brand, rather than of the label company itself.
Record labels are often under the control of a corporate umbrella organization called a music group. A music group is typically owned by international conglomerateholding company, which often has non-music divisions as well. A music group controls and consists of music publishing companies, record (sound recording) manufacturers, record distributors, and record labels. As of 2005, the "big four" music groups control about 70% of the world music market, and about 80% of the United States music market. Record companies (manufacturers, distributors, and labels) may also comprise a record group which is, in turn, controlled by a music group. The constituent companies in a music group or record group are sometimes marketed as being divisions of the group.