EDM Record Labels: All You Should Know Before You Sign Up

Record labels have traditionally played a pivotal role in artists’ music careers. Essentially, a record label is a company, large or small, that specializes in manufacturing, distributing, and promoting the recordings of its affiliated artists. Depending on the label’s size, its scope of expertise can extend well beyond these core activities.

Large recording companies, including the major labels Universal Music Group (UMG), Sony Music, and Warner Music Group (WMG), often operate as publishing companies managing brands and trademarks. They also serve as financial powerhouses funding artists’ productions and as talent scouts seeking new stars.

Overall, we can distinguish between three main types of record labels: major labels, subsidiaries of major labels, and independent labels, which can be further divided into large independent labels and small indie labels. Before we fully dive into EDM labels, let’s briefly explore these different types.

As previously mentioned, this group refers to the music industry's ‘Big Three’: UMG, Sony Music, and WMG. These labels have been known for their rather controlling nature, wielding power over artists’ works, earnings, and careers.

Typically, major labels own the master recordings and all associated sound recording rights of their artists’ works, paying them a percentage of the net sales, also known as royalties. This means that artists signed with major labels usually do not own the rights to their works. However, the specifics depend on the type of deal made between the label and the artist. There are also so-called 360 deals, where the label takes a percentage of everything the artist is involved in, including merch, tours, movies, books, etc.

Despite these conditions, joining a major label remains a significant milestone for many artists, as it is often seen as a marker of success and provides access to extensive opportunities and resources.

Subsidiary labels are often smaller, previously independent labels that have been acquired by one of the major labels. These subsidiaries often retain a level of independence or at least appear to do so publicly. Therefore, it is crucial to thoroughly research any label you’re considering to understand its structure and affiliations.

Subsidiaries that maintain some degree of their independent nature can offer numerous promotional opportunities while allowing artists greater control over their work.

Generally, all labels that operate without the funding or distribution of the ‘Big Three’ can be considered independent, regardless of their size. This category includes a wide range of companies, from small start-ups to large, complex corporations.

However, the term ‘independent label’ can have different interpretations. While some define it strictly by corporate structure and size, others use it to describe any label that releases non-commercial music, regardless of its corporate setup.

Indie labels are generally seen as more artist-friendly than major labels and their subsidiaries. They are also known for fostering closer relationships with affiliated artists and offering more care and personalized support.

Large indie labels can be great marketing forces, providing artists with more creative freedom and control. However, these labels are less common, selective, and more difficult to sign with, often requiring artists to be well-established in their careers and have a substantial following. Small independent labels operate more like small businesses. They have less influence, reach, and marketing power but can still significantly push your music, especially if you’re an emerging artist.

Over the past twenty years, the EDM record label scene has expanded significantly, creating a highly competitive yet accessible environment for artists. Many prominent electronic artists founded successful EDM labels, small and large, some of which remain independent today. Notable independent EDM labels include:

• mau5trap — established by Deadmau5,

• Mad Decent — established by Diplo,

• Armada Music — established by Armin van Buuren,

• Monstercat

• Underground Resistance — founded by Mike Banks and Jeff Mills

• Tresor Records

There are also prominent EDM labels owned by the ‘Big Three’:

• Spinnin’ Records — owned by WB,

• Astralwerks — owned by UMG,

• Ultra Music — owned by Sony Music, etc.

Beyond that, there are hundreds, if not thousands, of smaller independent EDM labels that allow predominantly up-and-coming artists to grow their careers.

Let’s start with the positives. Being signed to a label offers numerous benefits, and the extent of these benefits often depends on the label’s size. For one, it can be easier to get your music heard.

Labels typically have valuable pre-existing relationships — whether with curators, tastemakers, promoters, or other relevant actors — that can help enhance your reach and exposure and attract the attention of your target audience. Generally speaking, the larger and more prominent the label, the more opportunities to promote and boost your music and career are presented to you. The relationships also come with the much-needed expertise on how to navigate one’s career in the music industry.

Bigger labels not only have extensive contacts but also the budgets to finance your music career and promote your work. Major labels often provide artists with so-called advance payments, enabling them to pursue their careers and achieve success.

Additionally, we should not forget that record labels may also provide artists with recording, production, and distribution solutions. In essence, record labels, regardless of size and type, aim to open doors to opportunities, possibilities, and solutions that artists might struggle to access on their own.

Ironically, the benefits of signing with a label also come with drawbacks. Generally, the more a label offers, the more it demands in return — this is especially true for major labels and can also apply to larger independent ones. The opportunities and financial support provided by labels are not for free. The cost of a label’s services often extends beyond the deal you sign.

Signing with a label may require you to give up ownership of your art and/or agree to share a portion of your revenue. This can give the label significant control over your earnings and creative decisions. In the worst-case scenario, your creative freedom may be compromised, with the label dictating your artistic direction.

That said, it’s important to note that this isn’t the case for every label or label type. Small indie labels typically prioritize their relationships with affiliated artists, offering more artistic control and artist-friendly contracts that don’t necessarily require giving up rights. On the downside, indie labels may have less influence in the music industry, thus providing less exposure and fewer opportunities.

Ultimately, when deciding whether to sign with a label, it’s crucial to consider your needs, desires, values, and the potential risks and sacrifices involved.

One may wonder: Is signing with a label the only path to success? The answer is: absolutely not. It all comes down to your goals and what drives you to seek a label’s services. Additionally, it’s important to assess the options available to you.

Signing with a prominent label with dreams of becoming a globally known EDM artist is an admirable goal but may be challenging to achieve (though not impossible). The competition between artists is intense, and you need substantial artistic leverage to catch the attention of a label, especially a major one.

Several alternative solutions can, to a certain extent, offer the expertise, opportunities, and even financial support labels provide. For promotional purposes, various marketing and PR agencies focus on music — some of them specifically on electronic music — and can help you market your music to reach your target audience.

For example, you can check out the UK-based agency The Everyday Agency, which specializes in electronic music marketing, or the Berlin-based music promotions company Guerilla Music Promotion. These days, marketing companies typically offer remote services, meaning you can work with them regardless of your location.

If you need guidance, industry consultation professionals or agencies can help you navigate your electronic music career. Consider agencies like Compass Music, Tunetrax, AV Music Store, or Berlin Music Pool for music consultation services. Additionally, music communities, like the iMusician Community Forum, provide a platform for industry experts and fellow artists to provide feedback and career tips.

Nowadays, many distributors have expanded their services beyond digital distribution, offering additional perks and opportunities to help artists advance their electronic music careers. With a digital distributor like iMusician, you can promote your music and artist brand, aim for editorial playlist placements, master your release with Instant Mastering, and track your performance with the Music Analytics tool.

The core distribution services remain crucial for the success of the artists, too. With iMusician, you can distribute your electronic music release to all major music services, such as Spotify, Amazon Music, Apple Music, or Deezer, as well as electronic-specialized stores, like Beatport or Traxsource.

When it comes to securing finances for your career, there are several avenues you can explore. You could consider taking a business loan from a bank and other financial institution, apply for music grants through various art grant programs, opt for crowdfunding or even seek a sponsor or investor. For more detailed insights on this topic, check out our article on music funding for independent artists!

You’ve weighed all the pros and cons and decided to pursue a contract with an EDM label. So, what’s next? Let’s explore the steps!

The suitability of a record label strongly depends on the current stage of your music career. If you’re an emerging EDM artist, approaching large indie or major labels may not yield much success. Instead, you should consider targeting smaller independent labels for your releases.

Here are some strategies to find the perfect record label:

• Look to your influences: Research the record labels your favorite electronic music artists were associated with in the early days of their careers.

• Use specialized websites: Explore sites like BeatStats, which lists Beatport labels for each electronic music genre, along with their current label chart positions, and BeatStats monthly chart positions. Sites like Labelsbase and 1001Tracklist, featuring global DJ radio shows, can also be valuable resources.

• Leverage search engines: Use Google to find labels that match your needs. Simple searches can present options that fit your criteria.

• Draw inspiration from creative content: Dive into blog articles and YouTube videos that cover your niche in electronic music. These resources can provide valuable insights and recommendations.

• Research playlists and DJ mixes: Listen to playlists and DJ mixes that feature your style of music. This can help you discover labels you may not have heard of yet.

• Engage with the music community: Participate in the music community as much as you can. Building relationships and being seen as proactive in the community can potentially increase your chances of getting signed.

Here are a few recommendations for independent EDM record labels and labels that release electronic music:

• Spectrum Recordings — A UK-based record label that focuses on Deep/Chill/Tropical House.

• Embassy of Music — An independent Berlin-based record label releases a wide range of music from both established and up-and-coming artists.

• Rose Avenue — A US-based EDM record label established by an Australian alternative dance group RÜFÜS DU SOL

• Mars Alliance — An internationally-based record label dedicated to discovering, releasing, and promoting emerging artists

• Red Bull Records — A bigger independent record label with a team devoted to discovering new artists and accepting demos from anyone!

This is your moment to shine! Once you’ve found the label that feels right to you, it’s time to submit your demo. There are a few rules that are important to follow to increase your chances of getting signed.

• Ensure your demo is polished and of high quality.

• Carefully read the submission instructions on the label’s website and use their preferred method of contact. Some labels have a dedicated demo-submission platform, while others use a contact form or simply provide an email-address for submissions.

• Only submit music that aligns with the label’s sound and repertoire.

• Make it easy for the label’s A&R to listen. Make sure your links are not broken and that your demo can be easily downloaded.

If you’re currently in the process of preparing your demo and need some support, check out our article on how to make your first demo.

Now, we might be skipping a few steps here. Once you’ve submitted your demo, you will likely spend some time waiting for a response from the respective labels. Hopefully, you will eventually receive the answer you've been waiting for. After getting in proper contact with the label’s A&R team, you may be offered the opportunity to sign with the label.

Once you receive a record label contract, the situation can get quite tricky and daunting. Contracts can generally be complex and difficult to navigate, especially if you’re new to the game. While we can’t offer legal advice, we strongly recommend consulting a lawyer if you need to.

However, we can offer some tips on what to look out for when signing your contract. Here are a few important sections you may encounter in your contract.

Contract term

Contract term generally refers to the duration during which the artist is (usually exclusively) bound to the label. The contract term period typically ranges from 1-3 years for emerging artists, while for established and renowned musicians, it can be 5-15 years.

Sometimes, labels differentiate between the contact term and so-called exploitation period, the time during which the label has the right to distribute, market, sell, and profit from your work. Make sure to look for this information in your contract and agree with the terms of the exploitation period.

Be aware of clauses regarding copyright reversion. Some contracts may state that if the copyright isn’t requested back by the artist after the contract/exploitation term, the label will retain it. Watch out for this detail.

Royalty/revenue share

This section details the % of revenue you keep vs. the % of revenue that the label retains. It’s a standard practice for indie labels to offer a 40/60 50/50 split for (label/artist). Major labels or their subsidiaries often work on a 70/30 or even 85/15 split, with the majority kept by the label.

Territory

The territory section in the contract refers to all global areas your music will be commercially released in — meaning where the label will distribute, market and profit from your work. Typically, a contract will simply state ‘Universe’ to suggest that your music will be released worldwide.

However, some labels, though rarely, are focused on specific areas, which can be useful if you want to tackle a particular market.

Exclusivity

This part of the contract determines whether you’re able to release your work through any other record label. This, as you may have guessed it, is usually not possible, with labels typically operating on exclusive contracts.

Watch out for deals that stipulate ‘continuous exclusivity,’ as this means the label will retain exclusive rights to your music for the foreseeable future.

If you need more detailed information about what section you may come across in your record deal, check out our article on 5 terms to consider in a record label contract.