Somewhat surprisingly, independent music labels collectively have led the major labels in total market share since 2017, which begs the question: why are artists signing with indies instead of major labels, which still claim the most money and clout? More money means bigger promotions for an artist’s record, along with bigger advances and signing bonuses for the artist. More clout means major labels have established connections throughout the industry to grease the wheels that help artists succeed.
In addition, because the major labels collectively still have most of the total market share, the economy of scale offers lower costs of production and distribution. Despite these advantages, things are changing and indies area gaining ground. Here are a few reasons why.
Artists Who Don’t Trust the Major Labels Now Have an Option
The major labels have a scurrilous reputation for luring artists to sign with big bonuses and then, once the artists are signed, lowballing them out of the royalties they earn from the music. It’s been estimated that the average musician in a band earns $23.40 for every $1000 the music earns. Artists have repeatedly sued the labels over royalty disputes, including James Taylor, Eminem, Kenny Rogers, George Clinton.
Once artists are wined, dined, and signed, their labels might turn their backs on them as they focus on other, more established stars. Especially if the music doesn’t sell as anticipated, the labels have been known to stop spending money on promotion, leaving the artists at the mercy of the label, with little recourse to promote their product. Until the rise of independent labels, artists had little choice because, with all their clout, the majors were practically the only game in town.
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