The term "record label" when referring to the Big Four is a misnomer, as they are actually corporate umbrella organizations
called holding company music business groups. A music group is a business group consisting of music related companies, that
is owned by an international conglomerate holding company, which often also has non-music divisions.
Each of the Big Four is a music group that controls all of its affilates
that include music music publishing companies, record (sound recording) manufacturers, record distributors and record labels. These holding companies have a huge network of affiliate
record labels in the down-line. A record label is a company that manages
sound recording-related brands & trademarks and coordinates the production, marketing, licensing and copyright
protection of sound recordings and videos; and maintains contracts with recording artists and their managers. Record
companies (manufacturers, distributors, and labels) may also comprise a record group which is, in turn, controlled by a music
group.
Sometimes it’s difficult to discern the difference between a Major Record Label, Major Label Affiliate and Indie
Label. It’s a major record label if the artist’s record label
contract reads like a multi-album,
major label deal; is long and has lots of nebulous language; its product is distributed
by one the “Big Four” major distributors or is funded by one of them.
It’s been possible for writer/artists to release independent recordings
for many years. The affordability of digital recording equipment and the marketing potential of the internet have done a lot
to level the playing field for indie artists.
