What Do Record Labels Do? Understanding Their Role in an Artist’s Career

The Role of Record Labels in the Music Industry

Record labels have historically been central to the music industry, providing artists with resources and support to create, promote, and distribute their music. However, the role of a record label has evolved, and the necessity of signing with one is no longer a given for every artist. This article aims to objectively explore what a record label does, allowing artists to make informed decisions about whether working with a label aligns with their career goals. It's important to note that there are differences between major and independent labels, which you can read up on here Major vs. Independent Record Labels: Understanding the Key Differences.

1. A&R (Artists and Repertoire)

A&R is one of the most recognized functions of a record label, focusing on discovering and developing new talent.

  • Talent Scouting and Artist Development: A&R representatives are tasked with finding new artists who show potential. They often attend live shows, scour online platforms, and network within the industry to discover emerging talent. Once an artist is signed, A&R helps shape their artistic direction, offering guidance on sound, style, and branding.

  • Creative Guidance: A&R teams work closely with artists to refine their music. This could involve offering suggestions on song arrangements, helping to choose the right tracks for an album, or connecting artists with producers who complement their style.

  • Project Management: A&R also manages the production process, coordinating studio time, producers, and session musicians. They ensure that the recording process stays on schedule and that the final product meets the label’s standards.

2. Music Production and Financing

One of the key roles of a record label is to finance the production of music, but the level of support can vary depending on the deal.

  • Funding the Recording Process: Recording music professionally can be expensive, and many labels provide the necessary funds for studio time, producers, mixing, and mastering. This financial backing allows artists to focus on their creative work without the immediate burden of production costs.

  • Access to Professional Studios and Producers: Labels often have relationships with high-quality studios and experienced producers. This access can elevate the quality of the music, helping it stand out in a competitive market.

  • Creative Input and Collaboration: While labels may provide creative input during production, the extent of this involvement can vary. Some labels might take a hands-on approach, while others might give the artist more creative freedom. This is often defined by the specific terms of the contract.

3. Marketing and Promotion

Promoting an artist's work is one of the most critical functions of a record label, though the scope of these efforts can differ widely.

  • Creating a Marketing Strategy: Labels typically develop marketing plans tailored to each release. This can include everything from social media campaigns to press outreach, all aimed at maximizing the visibility of the artist’s work.

  • Public Relations and Media Outreach: A key aspect of a label’s role is managing an artist’s public image. Labels arrange interviews, press releases, and public appearances, helping to build and maintain the artist’s brand in the media.

  • Social Media and Digital Campaigns: In today’s digital-first music landscape, labels use social media and digital platforms extensively to promote their artists. They may manage the artist’s social media presence, create content, and run targeted ad campaigns to boost engagement.

  • Radio Promotion: Securing radio play remains a valuable tool for reaching a broader audience. Labels often have connections with radio stations and can help get an artist’s music into regular rotation. However, the level of radio promotion support can vary based on the label and the specific deal.

4. Distribution and Sales

Getting music to listeners is a core function of record labels, and they have established networks to ensure this happens efficiently.

  • Physical and Digital Distribution: Labels handle the logistics of distributing music across various platforms, including streaming services, online stores, and physical formats like CDs and vinyl. They ensure that the music is available where fans are looking for it.

  • Pitching to DSP Editors: One advantage labels offer is their established relationships with Digital Service Providers (DSPs) like Spotify, Apple Music, and Amazon Music. Labels can pitch tracks to DSP editors, increasing the likelihood of being featured on prominent playlists, which can significantly boost an artist’s visibility. However, it’s important to note that not all labels may provide the same level of support in this area, and the outcomes can vary.

  • Monetization Strategies: Labels assist with monetizing music through royalties, licensing, and sync opportunities. They manage the complex process of collecting and distributing earnings, which can be particularly challenging for independent artists to navigate on their own.

5. Tour Support and Booking

Supporting an artist’s live performances is another area where labels might be involved, though the extent of this support can depend on the deal.

  • Planning and Funding Tours: Some labels provide financial backing for tours, covering costs like travel, accommodations, and production expenses.

  • Booking Agents and Venues: Labels may work with booking agents to secure performance opportunities for their artists. These connections can help artists play in better venues and potentially open for larger acts, expanding their reach.

  • Tour Promotion: Labels often assist with promoting tours, including creating promotional materials, managing ticket sales, and marketing the events to ensure high attendance. Again, the level of involvement can vary, and not all labels will offer comprehensive tour support.

6. Legal and Contractual Support

Navigating the legal landscape of the music industry can be complex, and labels often provide valuable legal and contractual support.

  • Contract Negotiation: Labels negotiate contracts with artists, producers, and other stakeholders. They work to ensure that agreements are legally sound and that the interests of all parties are protected.

  • Rights Management: Managing the rights to an artist’s music is crucial. Labels help protect intellectual property and ensure that artists receive the royalties and other payments they are entitled to. This includes registering the music with rights organizations and handling licensing agreements.

  • Dispute Resolution: If legal disputes arise, labels often have the resources to manage these issues. They work to resolve conflicts while ensuring compliance with industry regulations, providing a layer of security for the artist.

7. The Value of Record Labels

Record labels offer a range of services that can significantly impact an artist’s career, from funding and production to marketing and distribution. However, it’s important to recognize that not all labels offer the same level of support in every area, and the specifics often depend on the terms of the contract.

While labels can provide valuable resources and industry connections, artists should carefully consider whether signing with a label aligns with their goals and needs. The decision to work with a label is not one-size-fits-all, and it’s crucial to weigh the benefits against the potential trade-offs, such as sharing revenue and creative control. If you think signing to a label is something for you, read How to Get Signed to a Record Label in 2024 for tips on making that dream come true.


Key Takeaways:

  1. A&R and Artist Development: Labels scout and develop talent, providing creative guidance and managing music production.

  2. Music Production and Financing: Labels fund recording sessions and provide access to top-tier studios and producers.

  3. Marketing and Promotion: Labels create marketing strategies, manage PR, run digital campaigns, and secure radio play.

  4. Distribution and Sales: Labels ensure that music is widely distributed across physical and digital platforms and manage monetization.

  5. Tour Support and Booking: Labels assist with planning, funding, and promoting tours, securing performance opportunities.

  6. Legal and Contractual Support: Labels handle contract negotiations, rights management, and legal disputes.


Crate is here to support you through every step of your journey. We’d love to hear what challenges you’re facing and how we can help—whether it’s with social media strategies or other aspects of your music career. GET IN TOUCH

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How to Get Signed to a Record Label in 2024 – And Should You?