Abstract
The chief advantages of releasing Musician album with independent record labels are similar to the reasons for signing with major labels. Some independent labels have been so successful they have become subsidiaries of major recording labels, such as Def Jam, Aftermath, Maverick, and LaFace and Zomba. In a distribution-only deal, the record label will either contract directly with stores or deal with networks of independent distributors or both, selling to them at wholesale prices. A production company could have a deal with a record company that pays 14% to 18% of retail on records sold, depending in part on whether the recording costs are paid by the production company or advanced by the record company. Whether Net Profits Deals is a better deal for the artist will depend on the attitude and values of the people running the record company, how the term net income is defined, and, of course, the volume of sales and third-party license fees.
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