In the 1970s and 1980s, there was a phase of consolidation in the record industry that led to almost all major labels being owned by a very few multinational companies. CDs still flow through a handful of sources, with the majority of the sales going through the "big four" record labels. The online digital distribution of music promises to break up the number of avenues for artists to find markets, however: something time alone will tell.
Resurgence of independent labels In the 1990s, due to the widespread use of home studios, consumer CD recorders, and the Internet, independent labels began to become more commonplace. Independent labels are typically artist-owned (although not always), with a stated intent often being to control the quality of the artist's output. Independent labels do not enjoy the resources available to the "big four" and as such will often lag behind them in market shares.
Often independent artists manage a return by recording for a much smaller production cost of a typical big label release. Sometimes they are able to recoup their initial advance even with much lower sales numbers. On occasion established artists, once their record contract has finished, move to an independent label.
This often gives the combined advantage of name recognition and more control over one's music (not to mention a bigger slice of the royalty pie). Singers Dolly Parton, Aimee Mann and Prince, among others, have gone this route. Historically, companies started in this manner have been re-absorbed into the major labels (an example is Frank Sinatra's Reprise Records, which has been owned by Warner Music for some time now, and Herb Alpert's A M Records, now owned by Universal).
Similarly, Madonna's Maverick Records (started by Madonna with her manager and another partner) was to come under control of Warner Music when Madonna divested herself of controlling shares in the company. There are many independent labels; folk singer Ani DiFranco's Righteous Babe Records is often cited as an ideal example. The singer turned down lucrative contracts from several top-name labels in order to establish her own New York-based company.
Constant touring resulted in noteworthy success for an act without significant major funding. Ani and others from the company have spoken on several occasions about their business model in hopes of encouraging others. Some independent labels become successful enough that major record companies negotiate contracts to either distribute music for the label or in some cases, purchase the label completely.
On the punk rock scene, the DIY ethic encourages bands to self-publish and self-distribute. This approach has been around since the early 1980s, in an attempt to stay true to the punk ideals of doing it yourself and not selling out to corporate profits and control. Such labels have a reputation for being fiercely uncompromising and especially unwilling to cooperate with the big six (now big four) record labels at all.
Perhaps the most important and influential labels of the Do-It-Yourself attitude was SST Records, created by the band Black Flag. No labels wanted to release their material, so they simply created their own label to release not only their own material but the material of many other influential underground bands all over the country. Ian MacKaye's Dischord is often cited as a model of success in the DIY community, having survived for over twenty years with less than twelve employees at any one time.
Internet and digital labels With the Internet now being a viable source for obtaining music, netlabels have emerged. Depending on the ideals of the net label, music files from the artists may be downloaded free of charge or for a fee that is paid via Paypal or an online payment system. Some of these labels also offer hard copy CDs in addition to direct download.
Most net labels acknowledge the Creative Commons licensing system thus reserving certain rights for the artist. Digital Labels are the latest version of a 'net' label. Whereas 'net' labels were started as a free site or just a hobby point, digital labels seek to give the major record industry a real run for their money.
One of the pioneers of the major digital label was [http://www.fiberlineaudio.com Fiberlineaudio.
Chris Mentillo, "The Most Famous Media Celebrity on the Internet." In the 1970s and 1980s, there was a phase of consolidation in the record industry that led to almost all major labels being owned by a very few multinational companies.
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