The big debate in music about whether or not to sign to a record label is one to pay close attention to as it could generally dictate the entire future of the global music industry. Chance the Rapper once tweeted saying ” “Also have some damn patience, all your favorite artists are locked up in deals and until they get out (and stay out) you wont see the realization of their full potential.” He is currently one of the most commercially successful male artist of this generation. So the question is, Can you attain success as a music artist without the backing of a major Record Label?
When we talk about major labels, there are only three in the world: Universal Music Group, Sony Music Entertainment & Warner Music Group. These three basically have ownership rights to a larger percentage of the world’s music. The companies have maintained dominance over the industry through direct ownership of subsidiary record labels, through which they offer recording deals. If you are signed directly or indirectly to any one of these three companies, you are no longer classified as an independent artist. In recent years we have seen growing interest from these labels, directed towards African music. A good example is when Universal bought majority stake in the Kenyan outfit AI Records, which is a music distribution company. The main aim of this deal for U.M.G. was to expand its music catalogue. Such huge record labels offer numerous resources and opportunities for an artist to explore within the music industry.
The huge marketing and promotional budgets together with a worldwide distribution network provide a chance for artists to make the most out of their music. There is however a flip side to this and it involves contractual agreements. Whatever is stipulated is usually leaning in favour of the record label i.e. you have to give them whatever they want or there is no deal. This is the so called “Slavery” that comes into play when you are signed by a major label as an upcoming artist.
Looking at it from the Kenyan context, we see a very different perspective. Since there is very little activity by the three major labels in our country, we have been left at the mercy of local independent record companies. We have mainly four types of record labels in Kenya:
1. Artist Formed Record Labels – These are recording studios set up by successful performing artists. These types of imprints are usually genre specific, i.e. the main artist signs upcoming artists doing the same music genre as him/her. A good example is Blu-Ink Corp formed by Khaligraph Jones to support upcoming Kenyan hip-hop artists.
2. Producer Formed Record Labels – As the name suggests, these are recording companies formed by famous or upcoming music producers. For example, Ennovator music founded by Tim Rimbui. Such record labels offer more value when it comes to production quality and they source their artists from various genres.
3. International Subsidiary Record Labels – A good example is Chocolate City, A Nigerian management and recording firm that signed Victoria Kimani as she was beginning to take off. Sony Music has also shown industry in the Kenyan recording industry severally signing artists like Redsan & Xstatic. International labels usually came with a specific agenda. For example, in Victoria’s case, the push was to increase popularity of Nigerian music in Kenya. Sony on the other hand wanted rebrand artists for international markets, which worked well with Redsan but not so for Xtatic. Such companies come with a lot of restrictions.
4. Investor Formed Record Labels – This is where the money talks. It usually involves a rich individual funding an artist(s) and producers to create music and generate more income. In Kenya, we have Taurus Music which houses Kagwe Mungai. It is part of Taurus Group, a media and entertainment company owned by a Nigerian. Such set ups are usually quite beneficial for the musicians as it gives them an opportunity to make music with creative freedom and flexible terms.
Looking at these four options, which one would you choose as a creative music artist. Where do you think you can get most value? In either setting, there has to be some contracts in place for business to take place. Is that agreement worth signing? I will give you a fact, one that is currently affecting the world of music right now. With streaming and social media, the playing field has been leveled. Look at it this way, Independent artists are competing with signed artists for streaming revenue and online following. While signed artists enjoy all the benefits that come with being in a label, e.g. touring, merchandise, distribution network and international reach, Independent artists enjoy the freedom to release their music at any time they wish to and retain full ownership of their music.
At the end of the day if you look at it, a popular independent artist rakes up more income per year compared to most artists signed in a major label who are struggling with debt and unreleased music. In todays age, if you believe in your self and your ability to create, all you have to do is share your content and watch the world accept you. The number of independent artists will always be more compared to those signed. The eco-system is totally shifting from mainstream media to digital streaming. In order to grow as an indie artist, all you need to do is learn digital marketing and how to manipulate streaming services.
What you need to do is grow your brand in order to gain leverage over the record labels. When they come knocking, you are in a position to negotiate your demands and not be sold into exploitative deals.
We shall expound more on record deals and the impact that streaming has had in another article. We shall also discuss more about the recording industry of Kenya and key players involved.
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Courtesy of Omni Music & Entertainment Group Limited – Kenya
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