Editing Record label (section)

== Independent ==
{{Main|Independent record label}}

Record labels and music publishers that are not under the control of the big three are generally considered to be ''independent'' (''[[indie (music)|indie]]''), even if they are large corporations with complex structures. The term ''indie label'' is sometimes used to refer to only those independent labels that adhere to independent criteria of corporate structure and size, and some consider an indie label to be almost any label that releases non-mainstream music, regardless of its corporate structure.

Independent labels are often considered more artist-friendly. Though they may have less sales power, indie labels typically offer larger artist royalty with a 50% profit-share agreement, aka 50–50 deal, not uncommon.<ref>{{cite web|last=McDonald|first=Heather|date=20 November 2019|title=5 Lessons Big Record Labels Learned From Independents|url=https://www.thebalancecareers.com/top-lessons-big-labels-learned-from-independents-2460789|website=[[The Balance (website)|The Balance]]}}</ref> In addition, independent labels are often artist-owned (although not always), with a stated intent often being to control the quality of the artist's output. Independent labels usually do not enjoy the resources available to the "big three" and as such will often lag behind them in market shares. However, frequently independent artists manage a return by recording for a much smaller production cost of a typical big label release. Sometimes they are able to recoup their initial advance even with much lower sales numbers.

On occasion, established artists, once their record contract has finished, move to an independent label. This often gives the combined advantage of name recognition and more control over one's music along with a larger portion of royalty profits. Artists such as [[Dolly Parton]], [[Aimee Mann]], [[Prince (musician)|Prince]], [[Public Enemy (band)|Public Enemy]], among others, have done this. Historically, companies started in this manner have been re-absorbed into the major labels (two examples are American singer [[Frank Sinatra]]'s [[Reprise Records]], which has been owned by [[Warner Music Group]] for some time now, and musician [[Herb Alpert]]'s [[A&M Records]], now owned by Universal Music Group). Similarly, [[Madonna (entertainer)|Madonna]]'s Maverick Records (started by Madonna with her manager and another partner) was to come under control of Warner Music when Madonna [[divest]]ed herself of controlling shares in the company.

Some independent labels become successful enough that major record companies negotiate contracts to either distribute music for the label or in some cases, purchase the label completely, to the point where it functions as an imprint or sublabel.