By definition, a major label is a company that is responsible for the manufacture, promotion and distribution of recordings. Such company’s include BMG, Universal Music and Sony. These firms own their own distribution networks. Independent labels are on the other hand are recording companies that work on a smaller scale and use distributors to publish their work.
When trying to publish any form of music, it is essential to have a working relationship with the media. Independent labels find it difficult to create the hype that is necessary for a new song. Major labels on the other hand are facing increases in costs because of expensive buyouts. Because of these reasons, many Major and Independent labels have chosen to work together.
Usually the independent labels work with Major labels by concentrating on artist development. This way small independent labels are able to scout out new trends and find new talent within niche markets.
Independent labels who work with Major labels are able to get their hands on funds that can help them to concentrate more on artist development and sourcing. Another added benefit is that these independent labels are able to use better more renowned distribution channels to publish their work. By using a Major label’s distribution, the chances of getting paid by distributors are higher, because the distributors have Major label backing.