What Do Record Labels Do? An Overview of Record Label Roles and Responsibilities

Record labels are music companies that manage and promote the artists they sign. They handle the financial and legal aspects of music publishing, including copyrighting and trademarking. Labels earn money through music sales, streaming royalties, licensing deals, merchandise, and live event promotions.

Are you new to the topic and curious to find out what record labels do? Or are you considering launching your own label and wondering what the roles of a record label are and what record labels do? Either way, let’s explore the ten most common tasks of established labels!

Labels scout and recruit musicians who align with their brand, direction, and goals. A&R teams actively monitor various platforms to identify and approach emerging talent. They evaluate not only an artist’s current appeal but also their long-term potential to thrive and evolve. Even the most creative label concept will not succeed without a solid roster of dedicated artists.

Labels assist artists in their careers by helping them refine their image, style, and sound. They provide guidance on cover artwork, photoshoots, and music videos to help musicians build a cohesive brand. This field—commonly referred to as artist development—intersects with a label’s creative direction. By crafting a distinct visual and sonic identity, labels ensure that each artist resonates with their target audience.

To guarantee high-quality recordings, labels provide artists access to music producers, engineers, studios, and equipment. Throughout production, labels often oversee creative decisions to ensure the final sound aligns with both the artist’s vision and the label’s brand. Some labels work with in-house professionals at their own studios, while others finance the music production process. The approach strongly depends on the money available to the label.

Record labels handle the publishing of their artists’ music. Most labels prioritize releasing music on (major) streaming services to maximize reach and drive engagement with a global audience. To do so, they work with music distribution services like iMusician, which provide them with digital release plans tailored to their needs. Still, some labels also publish physical music products on CDs or vinyl, with the latter having experienced a revival over the years.

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In addition to assisting artists with producing music, labels support them with creating various types of content, including music videos, behind-the-scenes footage, flyers, posters, and social media posts. This content is valuable for building an artist’s image across multiple platforms, adding more personality to their public persona, and expanding the reach of their music.

Labels manage marketing and promotional campaigns to increase their artists' visibility within the industry and among music enthusiasts. Their efforts can include online, offline, and PR campaigns. Additionally, labels evaluate data on streaming, demographics, and fan behavior to fine-tune their strategies and make sure their campaigns resonate with different target audiences.

Another key role of a record label is managing all important legal aspects of music publishing. This includes setting up contracts, clearing samples, trademarking, and assisting artists in legal disputes, among other things. Besides maintaining compliance with industry regulations, labels also manage royalties and other forms of compensation for their artists. This can include securing music placements in films, shows, and advertisements.

When artists are ready to perform live, labels often step in to manage their shows and tours. This includes finding suitable venues, promoting shows, and taking care of security measures. Prominent, established labels usually delegate these tasks to other companies, such as booking agencies or security firms. In some genres, such as electronic music, labels organize raves or club nights instead of concerts.

Labels serve as the point of contact between artists and external parties, handling requests, negotiations, and inquiries. This allows artists to focus on their music instead of e-mails, DMs, and phone calls. In addition, labels advocate for their artists’ interests in media appearances, collaborations, and business opportunities. This way, they help them shape and protect their public image.