Record label

"Big Three" music labels

A record label or record company is a brand or trademark of music recordings and music videos, or the company that owns it. Sometimes, a record label is also a publishing company that manages such brands and trademarks, coordinates the production, manufacture, distribution, marketing, promotion, and enforcement of copyright for sound recordings and music videos, while also conducting talent scouting and development of new artists, artist financing and maintaining contracts with recording artists and their managers. The term "record label" derives from the circular label in the center of a vinyl record which prominently displays the manufacturer's name, along with other information.

Within the mainstream music industry, recording artists have traditionally been reliant upon record labels to broaden their consumer base, market their albums, and promote their singles on streaming services, radio, and television. Record labels also provide publicists, who assist performers in gaining positive media coverage, and arrange for their merchandise to be available via stores and other media outlets.

Record labels may be small, localized and "independent" ("indie"), or they may be part of a large international media group, or somewhere in between. The Association of Independent Music (AIM) defines a "major" as "a multinational company which (together with the companies in its group) has more than 5% of the world market(s) for the sale of records or music videos". As of 2012^[update], only three labels are "major labels": Sony Music, Universal Music Group, and Warner Music Group. In 2014, AIM estimated that the majors had a collective global market share of some 65–70%.

Record labels are often under the control of a corporate umbrella organization called a "music group". A music group is usually affiliated to an international conglomerate "holding 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. Record companies (manufacturers, distributors, and labels) may also constitute 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.

From 1929 to 1998, there were six major record labels, known as the Big Six:

PolyGram was merged into Universal Music Group (UMG) in 1999, leaving the remaining record labels to be known as the Big Five.

In 2004, Sony and BMG agreed to a joint venture and merged their recorded music division to create the Sony BMG label (which would be renamed Sony Music Entertainment after a 2008 merger); BMG kept its music publishing division separate from Sony BMG and later sold BMG Music Publishing to UMG. In 2007, the remaining record labels—then known as the Big Four—controlled about 70% of the world music market, and about 80% of the United States music market.