Who Run The Music Industry?

If you are an aspiring artist and just taking your first steps in the world of music, or dreaming of a musical career, then you should have a good understanding of the structure of the music industry itself and understand who controls what in it.

The coveted and loud name of a musical organization is a label. Some artists dream of becoming residents of some production center and believe that this is the key to their success and popularity. Others think that a music label is a bunch of moneybags who just want to steal from young and naive musicians.

The category of giants of the global music industry includes the three largest and richest labels – Warner Music Group, Sony Music and Universal Music Group. These three companies own 70% of the global music industry market. Each of these labels has a huge number of contracts with world-class artists, has a large team of professionals around the world and includes popular genre labels.

Middle Labels – This category includes small independent labels, both international and local. Such labels, as a rule, are created by artists who at one time became popular and decided to create a music company on their good name. These are, for example, Black Star, Gas tank, Malfa and so on.

Also included in this category are labels, which are essentially big centers of music publishing. And in the same category there are international labels that exist only due to a couple of successful contracts with top musicians. For example, Effective Records, Spinnin Records, Nitron Music and others.

There are also dwarf labels in the industry. As a rule, these are labels of a local or regional level, which do not have top artists, do not have a large team, and generally have little to do but enthusiasm.

Labels are commercial enterprises whose main task is to generate profits. For them, music is just a business, you should not flatter yourself about creativity.

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In fact, in the global music industry, numbers, codes, and algorithms rule the ball. A producer is a person who makes sure that the system works properly. This is what it looks like on the surface. And yet people play an important role in the music industry. Those who are at the helm today, on whose authoritative opinion the fate of artists depend, determine the direction of development and trends of the future.

The fact is that in this way any label of the big three makes musical investments, that is, out of 1000 new young musicians, one becomes a new megastar and brings even more income to the label. At the same time, the label’s investment system is built in such a way that the remaining 999 also generate income, just on a much smaller scale.

And let’s not forget that the world of music today is dominated by music streaming services, which generate four out of five dollars of income for the entire music industry. And not only the income of labels and artists depends on the policy of streaming platforms, but also the further directions of the development of the music world as a whole.

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