Top artists like Drake and Kanye West choose major labels due to artist-friendly licensing deals. The evolving music industry landscape offers more flexibility and independence for artists. Learn about the dynamics, challenges, and benefits of working with major record labels.
Top artists leverage licensing deals with major labels for artist-friendly terms and services.
Competition in the music industry has driven major labels to offer more equitable licensing deals.
Deep dives
Licensing Deals with Major Record Labels and Artists
Artists like Drake, Kendrick Lamar, and J Cole have negotiated artist-friendly licensing deals with major record labels like Republic Records, TDE, and Roc Nation. These artists leverage their position to secure licensing agreements that provide distribution and label services. Distribution deals involve licensing music for a set term, while label services agreements offer additional support like radio promotion and marketing. The terms and advances in these deals are negotiable, with some artists like Taylor Swift having highly favorable arrangements that benefit both the artist and the record label.
Impact of Licensing Deals on Record Labels and Distributors
The competition in the music industry has driven major record labels to offer more equitable licensing deals to artists. Companies like Empire and major label-owned distributors have introduced agreements that allow artists to maintain ownership of their work. These licensing deals help maintain market share, attract talent, and provide services like marketing and resource investments. The evolving landscape sees distributors offering advances and label services, blurring the lines between traditional record labels and distribution companies.
Importance of Artist-Record Label Relationships and Financial Support
Established artists like Kanye West and Kendrick Lamar maintain relationships with major record labels due to the long-established rapport, financial support, and resources provided. Labels offer more than just funding for music production; they assist in merchandising, tour support, and legal protection. Labels' infrastructure and expertise in daily tasks like licensing, sample clearance, and partnerships create valuable support for artists. The complexity and demands of the music industry make labels a valuable partner for artists seeking success and financial security.
The biggest stars in the world, like Taylor Swift, Kendrick Lamar, and Drake, have all the leverage to go independent, but they continue to work with the major labels. A big reason why is that they sign licensing deals. These deals have shifted over time, and become much more artists friendly, especially for the superstars in the streaming era.
We break down the different types of deals, how they’ve shifted over time, and unique case studies like Brent Faiyaz, Kanye West, and more.
I’m joined by Brian “Z” Zisook from Audiomack, who is a wealth of knowledge on this topic.