Real value from record labels


Nikola Iliev aka Nickarth is the co-founder/CEO of Cafe De Anatolia (record label and media news company).

Record labels have played a vital role in the music industry for decades, providing artists with the resources, support and exposure needed to succeed in a highly competitive field. While the music industry has undergone significant changes in recent years, record labels remain a vital part of the ecosystem and provide a range of benefits to artists, including marketing support, legal advice and access to industry connections. In this article, I will explore the true value of record labels and why they remain an important and essential part of the music industry today.


The main functions of record labels

Production and recording: Labels provide access to resources and expertise that enable artists to create high-quality recordings. They have relationships with top producers, engineers and studios, enabling artists to create professional sounding music that can compete in the marketplace. Labels may also provide in-house studios, equipment, and technical support.

Distribution: Record labels have built relationships with distributors and retailers, getting their music to stores, streaming services and listeners around the world. This can be a critical advantage for artists who may not have the resources or connections to self-distribute their music. They handle physical and digital distribution, negotiate deals, coordinate production, ship and manage digital distribution platforms.

Record labels can also provide artists with valuable insights and data on how their music is performing. This may include information about sales, streaming numbers, and fan demographics. By analyzing this data, record labels can help artists make informed decisions about future releases, tours, and other aspects of their careers. In addition, labels can reach international markets and have often built relationships with distributors and retailers around the world, making it easier for artists to reach global audiences.

financing: Record labels provide financial support and cover the costs of recording, mixing, mastering, marketing and touring. Record labels can also offer advances on future royalties, allowing an artist to focus on making their music instead of worrying about how to pay the bills. With this financial support, an artist can invest in his career and take his music to the next level.

Marketing and promotion: Labels leverage their relationships with media outlets, streaming services and other industry professionals to promote artists and promote their music to a wider audience. Their marketing teams can create and execute targeted marketing campaigns through channels such as social media, radio and streaming services. In addition, record labels often have access to promotional opportunities that may not be available to independent artists, such as placement on popular playlists or radio shows.

Record labels can work with artists to develop their brand and image by designing album artwork and developing a cohesive social media strategy. Developing a strong brand and image helps artists connect more effectively with their fans and build a loyal following.

Legal support: Finally, labels can assist with contract negotiations, copyright and licensing agreements, including royalty rates, distribution and ownership of masters. These contracts can be complicated, and record label legal teams are adept at negotiating the best possible terms for their artists. This can ensure that the artist receives fair compensation for his work and that his rights are protected. They can also register copyrights and ensure proper licensing is obtained for the use of their music in various media, as well as provide guidance on sampling, remixing and other forms of music production where copyright issues may arise.

Challenges for the record label industry

As with most things in life, there are both pros and cons to working with a record label. While some artists experience drawbacks such as giving up creative control or conflicts over ownership and royalties, many still believe that the benefits of partnering with a label outweigh the risks.

In today’s digital age, music industry leaders face both exciting opportunities and daunting challenges. As a musician and industry insider, I believe that embracing technology is critical to success. Keeping up with the latest developments and digital platforms is essential to expand reach and connect with fans.

Personally, I have witnessed the power of social media, streaming services and digital marketing tools in promoting my label’s work and connecting with our audience. Moreover, it is crucial to harness the potential of data and analytics. By delving into the insights of the public, leaders can make informed decisions and tailor their strategies accordingly. I personally used data to better understand my fanbase and fine-tune my approach, resulting in more targeted and effective campaigns.

Diversifying revenue streams is another essential adjustment. The landscape of the music industry has changed and relying solely on album sales is no longer sustainable. Leaders should explore alternative sources of income such as streaming services, licensing, merchandise sales and live performances. We (my record label) have personally expanded our revenue streams by taking advantage of these opportunities, enabling financial stability and creative freedom.

The protection of intellectual property is a top priority in the digital age. Copyright infringement and piracy are a major threat to artists. Leaders must prioritize legal action and technological solutions to secure their jobs.

Finally, networks and partnerships can open doors to new markets, collaborations and growth opportunities. Staying agile and innovative is essential. The music industry is constantly evolving and leaders must adapt to changing trends and consumer preferences. I’ve found that embracing innovation and experimenting with new ideas, technologies and business models keeps me and my record label ahead of the curve and fuels our artistic growth.


Working with a record label allows artists to access resources, support and connections that can help them achieve their career aspirations and succeed in a highly competitive industry.

As someone who works in the music industry and runs a thriving record label, it is my responsibility to recognize gifted artists and guide them to success with the help of a record label. Ultimately, the decision to work with a record label is a personal one that requires careful consideration of both the potential drawbacks and the benefits. Business Council is the leading growth and networking organization for entrepreneurs and leaders. Am I eligible?