Independent record labels are funded by the music artists and for the music artists; therefore, they do a better job of conveying the artist’s original ambitions for the given project than a major label would do. Independent labels have a secret weapon that keeps them alive among the major label’s ever growing success in the music industry. Music artists are much happier to work with an independent label because of the freedoms that come with it. Although both labels produce music and make money, they have very different approach to business.
The definition of independent and major record labels differs depending on who we would ask, but the practical difference between the two is that a major label owns a distribution channel. This is important because, along with marketing, distribution is the key to making money in the music industry. The Big Four record labels are Universal Music Group, Sony/ BMG Music, EMI Group, and Warner Music Group. These are what we would call major record labels. Independent record labels, or Indie labels as they are commonly referred to, are the biggest fear of the music industry. The rise of the program known as the Apple/ iTunes Music Store (AMS) has leveled the playing field for all record labels.
It would seem that indie labels would have a harder time distributing their music since they do not own a distribution channel, but in fact, they possess a much stronger tool than the major labels. This tool puts them at a greater advantage. Major record labels insist on putting a DRM protection on their digital audio files, which is supposed to help cut down on the piracy issue. The downside to this is that the DRM does not do what it was made to do. Copyright protection does not even put a dent in the known piracy issue. If anything, the DRM prevents the labels from distributing their music over the internet and more importantly, the iTunes music store, which is the central platform for music distribution today. As...