Independent record label facts for kids

Kids Encyclopedia Facts

An independent record label (often called an indie label) is a company that releases music without being owned or funded by the really big music companies. Think of them as small or medium-sized businesses in the music world.

These indie labels and the artists they work with often join groups in their own countries. These groups then connect with a bigger international group called the Worldwide Independent Network (WIN).

Many indie labels started by focusing on specific types of music, like jazz music. Some even helped launch famous artists who were new and different, like Elvis Presley when he first started. Indie labels release all sorts of music, including rock, soul, R&B, jazz, blues, gospel, reggae, hip hop, and world music. Music from indie labels is often called indie music.

What are Independent Labels?

Independent record labels are smaller companies that create and share music. They are not connected to or funded by the three biggest music companies, often called "major labels."

Even though indie labels produce about 66% of all music titles, they only make about 20% of the sales. Many artists start their careers with indie labels, hoping to become more famous and maybe sign with a major label later.

It's not always easy to tell the difference between a major and an indie label. A major label usually has its own way of distributing music. Some successful indie labels might work with major labels for distribution or licensing. Major labels sometimes even buy parts of independent labels.

Also, some labels are started by famous artists who are already with major labels. These are sometimes called "vanity labels." They are often still owned by the major label and help established artists find and promote new talent.

According to the Association of Independent Music, a "major" company is a huge international company that sells more than 5% of all records or music videos worldwide. The current major labels are Sony, Warner Music (WMG), and the Universal Music Group (UMG). If a major label owns more than half of a company, that company is usually seen as being controlled by the major.

History of Indie Labels

Independent labels have often been the first to discover new music styles. This started after World War II in the United States. When artists had problems with major labels, many smaller labels appeared. These labels focused on country, jazz, and blues.

Sun Records was very important for rock 'n' roll and country music. They worked with artists like Elvis Presley, Johnny Cash, and Jerry Lee Lewis. These indie labels usually aimed for a smaller, dedicated audience. They didn't rely on selling millions of copies. This gave artists more freedom to try new things and be creative.

The Early Days (1940s–1960s)

In the late 1940s and 1950s, the American music business changed a lot. More people started their own recording studios and labels. Many realized that the first label to release a song gets paid for every record sold.

Jazz musicians were among the first to create their own labels. Over the years, many new labels were started by people who knew the music business well. In the 1940s and 1950s, R&B indie labels like Savoy, Apollo, King, and Vee-Jay Records were founded. In the 1960s, rock label Elektra and R&B labels like Motown and Stax Records released many popular songs and albums.

In the United Kingdom, major labels like EMI and Decca were very powerful in the 1950s and 1960s. Smaller labels found it hard to succeed. But some British producers started their own indie labels, like Triumph Records and Immediate Records. Chrysalis Records was one of the most successful indie labels from that time. Even famous bands like the Beatles (Apple Records) and the Rolling Stones (Rolling Stones Records) started their own labels. However, these often didn't do well commercially or were bought by major labels.

Punk and Pub Rock (1970s)

Many people believe the punk rock movement was a big turning point for indie labels. Punk's "do-it-yourself" attitude led to many new independent labels. Punk fanzines (fan magazines) and indie labels were key to this DIY spirit. However, some argue that punk bands still relied on existing companies to make their records.

The early 1970s pub rock scene also played a role. Labels like Chiswick Records and Stiff Records emerged. Stiff Records was known for its funny slogans and unusual releases. It even released the UK's first punk single, "New Rose" by The Damned, in 1976.

In the United States, indie labels like Beserkley found success. Another important thing for indie labels was having their own distribution. This meant their records could be included in the UK Indie Chart. Labels like Industrial and Factory kept full independence.

Compilations, Post-Punk, and Indie Music (1980s)

By the late 1970s, independent distribution companies like Pinnacle and Spartan were helping indie labels. This meant they didn't need major labels to get their music into stores. "The Cartel," a group of companies like Rough Trade Records, also helped small labels get their music to shops across the country.

The UK Indie Chart started in 1980. It showed the best-selling songs from independent labels. This chart was important because many independent stores weren't counted in the main charts. The chart featured all kinds of music, from punk to reggae and pop. Even artists like Kylie Minogue and Jason Donovan appeared on the chart with songs from the independently distributed PWL label.

The UK Indie Chart gave a lot of attention to artists on independent labels. By the late 1980s, major labels saw the potential in indie music. They started working with indie music figures to launch their own indie-style labels. For example, WEA (Warner/Elektra/Atlantic) teamed up with Geoff Travis to launch Blanco y Negro. The word "alternative" became popular to describe artists, and "indie" often meant guitar-based rock and pop.

The rise of dance music in the mid-to-late 1980s also led to new labels. Companies like Warp and Coldcut's Ahead of Our Time were set up. In Italy, production teams created and released dance records under different names. Instead of making individual deals, Cappella's Gianfranco Bortolotti started Media Records. This company had many studios working almost non-stop on a huge number of dance records.

The dance music scene also helped indie labels that created TV-advertised compilation albums. StreetSounds was one of the first independent companies to have many hits in the UK album chart with dance music collections.

Dance Music, Britpop, and Alternative Rock (1990s)

In 1991, two important independent companies were founded: All Around the World (AATW) and the Ministry of Sound. AATW focused on singles and occasional compilation albums. The Ministry of Sound started as a nightclub but quickly moved into compilations with their Sessions series. Over the years, their album brands became so popular that major labels became interested. Sony took over Ministry of Sound's record company, and AATW partnered with Universal Music TV.

Also in 1991, Rough Trade Distribution went bankrupt. This caused many indie labels to close or be partly sold to major labels. For example, Factory Records had problems because its founder, Tony Wilson, believed "musicians own everything, the company owns nothing." This made it hard for the company to be taken over.

However, not all indie labels failed. Some failed because they tried to compete directly with major labels instead of sticking to their unique style. Savage Records, funded by a millionaire's son, tried to become a major American label. They spent a lot of money signing artists like David Bowie. But when the funding stopped, the label failed.

Meanwhile, Epitaph Records had great success in the US. In 1994, they released The Offspring's album Smash. This became the best-selling independent record of the 1990s, selling over 12 million copies worldwide.

In the UK, the indie chart was still a valuable way to promote music. During the Britpop era, some "fake indies" appeared. These were labels owned by major companies but distributed independently so they could qualify for the indie chart. Examples included Sleeper on BMG's Indolent Records.

Richard Branson sold his independent label, Virgin Records, in 1992. A few years later, he launched a "new Virgin Records" called V2 Music in 1996. This British independent label was joined by other V2 Records around the world.

Hip Hop and R&B (2000s)

MF DOOM, a pioneering artist in underground hip hop, helped bring attention to independent hip hop music.

In 2001, Daptone Records was founded in New York. This funk and soul label became known for artists like Sharon Jones and Charles Bradley. Many musicians from Daptone also played on Amy Winehouse's famous Back to Black album.

As the indie hip hop or underground hip hop scene grew, more independent labels for this genre appeared. MF Doom's album Madvillainy sold over 150,000 copies, making it Stones Throw Records' best-selling underground album.

In 2004, Telstar Records in the UK went bankrupt. Like Savage Records before it, Telstar didn't stick to its original focus (compilation albums) and tried to compete with bigger companies, which led to its downfall.

Heritage Acts and Re-issues (2010s)

In the 2010s, with platforms like Bandcamp and SoundCloud, some larger indie labels started to focus less on new artists. Instead, they bought back old music catalogs and worked with "heritage acts"—artists popular before the digital age.

For example, the new independent BMG acquired the catalogs of labels like Echo and Sanctuary. Cherry Red Records also focused on re-issuing older music through labels like 7T's Records (1970s music) and Cherry Pop (1980s pop).

After buying a large part of EMI, Warner Music had to sell off many of its music catalogs starting in 2013. This meant that the rights to albums by artists like Radiohead went to Beggars (XL Recordings). Other artists' catalogs were sold to independent labels like Domino and Cherry Red.

K-pop and Grime (2020s)

The Official Independent Singles Chart Top 50 looks very different now compared to 1990. Today, grime, dance, and K-Pop artists are more likely to be in the Top 10 than traditional indie bands. For example, in November 2020, KSI and Craig David were number one, and BTS was number two.

Some artists, like prog rock singer Fish, even choose not to sign up with the Official Charts Company. He self-funded and distributed his 2020 album Weltschmerz from his home in Scotland. This meant it didn't appear on the main charts, even though early sales showed it would have been number two.

In South Korea, K-pop company Big Hit Entertainment (now HYBE Corporation) had huge revenues in 2020. They even bought into another company, Pledis Entertainment. In October 2020, Big Hit Entertainment went public on the stock market, making its founder one of the richest people in Korea.

Worldwide Independent Network (WIN)

The Worldwide Independent Network (WIN) is a global group for the independent music industry. It was founded in 2006. WIN brings together independent music organizations from countries all over the world.

Alison Wenham led the UK's Association of Independent Music (AIM) for 17 years. During that time, she also helped start WIN in 2006 and was its CEO for two years. She was a key person in helping indie labels compete globally with bigger companies.

On July 4, 2008, WIN held "Independents Day." This was the first yearly worldwide celebration of independent music.

WIN Membership

As of August 2019, WIN had many member organizations. These included groups from the USA (A2IM), Canada (ADISQ, CIMA), UK (AIM), Australia (AIR), Germany (VUT), and many more countries.

The groups in countries with strong music markets are especially active. These include AIM (UK), A2IM (USA), AIR (Australia), CIMA (Canada), VUT (Germany), and IMPALA (Europe).

Industry Impact

In 2016, WIN's WINTEL report showed that the independent music sector made up 37.6% of the global market. This sector earned about $5.6 billion worldwide in 2015.

Indie Music Around the World (21st Century)

Australia

In Australia, the main group for independent music is the Australian Independent Record Labels Association, or AIR. It had about 350 members in 2019.

A 2017 report showed that indie labels made 30% of the money in the Australian music market. Also, 57% of indie money came from Australian artists. This placed Australia in the top 10 global indie music markets. The report valued the Australian recording industry at $399.4 million. Digital music sales (44%) had become bigger than physical sales (33%).

Finland

In 2017, Finland's indie market had the lowest share of the total music market, at only 16%.

South Korea

In 2017, South Korea's indie market had the highest share of the total music market, at 88%.

United Kingdom

In 2017, the UK indie market had a 23% share of the total music market.

United States

In 2017, the US indie market had a 34% share of the total music market.

Famous Indie Labels

Here are some notable independent record companies and their founders:

Savoy Records (US, 1942– )
Apollo Records (US, 1943– )
Sun Records (US, 1950– ); this was the first label to record Elvis Presley and other early rock 'n' roll stars.
Allied Artists Music Group (US, 1959– ); started by Allied Artists Pictures for movie soundtracks. It grew to include pop, rock, and heavy metal.
Arhoolie Records (US, 1960– ); founded by Chris Strachwitz, known for blues and zydeco music.
Major Minor Records (Northern Ireland/UK, 1966–2011); known for releasing "Je t'aime... moi non plus" by Jane Birkin and Serge Gainsbourg.
Pasha Records (US, 1976–1989); known for releasing Quiet Riot's popular albums like Metal Health.
Trojan Records (UK, 1968– ); known for reggae music.
Charisma Records (UK, 1969–1986); founded by band manager Tony Stratton-Smith.

Indie Music Labels

Cooking Vinyl Australia (Australia, 2013– ); a partnership that Sony Music later invested in.
Mushroom (Australia, 1972– ); founded by Michael Gudinski.
Stiff Records (UK, 1976– ); founded by Dave Robinson and Jake Riviera, now owned by UMG.
Beggars Banquet (UK, 1977– ); founded by Martin Mills and Nick Austin.
Factory Records (UK, 1978–1992); founded by Tony Wilson and Alan Erasmus.
Mute Records (UK, 1978– ); founded by Daniel Miller.
Rough Trade (UK, 1978– ); founded by Geoff Travis.
Zoo Records (UK, 1978–1982); formed in Liverpool by Bill Drummond and David Balfe.
Postcard Records (UK, 1979– ); founded by Alan Horne.
4AD (UK, 1980– ); founded by Ivo Watts-Russell and Peter Kent.
Dischord Records (US, 1980– ); set up in Washington DC by members of a punk band.
Flying Nun Records (New Zealand, 1981– ); founded by Roger Shepherd.
Creation Records (UK, 1983–2000); founded by Alan McGee, Dick Green, and Joe Foster.
Go! Discs (UK, 1983–1996); now owned by UMG.
Play It Again Sam (Belgium, 1983– ); founded by Kenny Gates and Michel Lambot.
Food Records (UK, 1984–2000); became closely linked with Britpop music.
XL Recordings (UK, 1989– ); founded by Tim Palmer and Nick Halkes, originally a rave music label.
Warp (UK, 1989– ); originally a dance music label.
Heavenly Recordings (UK, 1990– ); founded by Jeff Barrett.
Domino (UK, 1993– ); founded by Laurence Bell and Jacqui Rice.
Infectious Music (UK, 1993– ); founded by Korda Marshall.
Fierce Panda (UK, 1994– ); founded by Simon Williams.
V2 Records Benelux (Belgium/The Netherlands, 1997– ); originally part of Richard Branson's V2 International group.
Eleven Seven (US, 2005– ); founded by Allen Kovac, now called Better Noise Music.
Red Bull Records (US, 2007– )
Wayfarer Records (US, 2007– ); founded by Dave Luxton.
Speedy Wunderground (UK, 2015– ); founded by producer Dan Carey.
So Fierce Music (Canada, 2020– ); known for working with LGBTQ+ artists.

Major-Minors

These labels existed before the punk era and became quite large by the 1980s. They often had a strong connection to a specific type of music (like prog or reggae) and were usually started by a well-known person. By the 1980s, they often focused on mainstream pop and had deals with major labels for distribution.

Island Records (Jamaica, 1959– ); now owned by UMG.
Motown (US, 1959–2005, 2011– ); now owned by UMG.
A&M Records (US, 1962−1999); founded by Herb Alpert and Jerry Moss, very successful, now owned by UMG.
Chrysalis Records (UK, 1968–2005, 2016– ); parts now owned by UMG and Blue Raincoat Music.
Virgin Records (UK, 1972– ); founded by Richard Branson, now owned by UMG.
I.R.S. Records (US, 1979–2013); known for college rock acts and an MTV show.
London Recordings (UK, 1980– ); a semi-independent label.
Jive Records (UK, 1981–2011); co-founded by Clive Calder, who sold its parent company to BMG.

Compilation and TV-Advertised Music Makers

These companies were known for creating albums with many different artists, often advertised on TV.

K-tel International
Stylus Music – known for Hit Mix albums.
Telstar Records – also owned dance record labels.
Ronco
Arcade Records
StreetSounds
DMG TV – owned by BBC Studios.
Pickwick – known for budget albums.
BMG – known for older music and back catalogs.

Dance Music Independents

R&S Records (Belgium, 1984– )
AATW (UK, 1991– )
Ministry of Sound (UK, 1991– ); started as a nightclub, then became a record label.
Skint (UK, 1995– ); known for big beat music.