- A record label is a company that usually signs exclusive contracts with musicians to release and utilize musical recordings for profit.
- There are three types of record labels: major labels, major label affiliates (who have business deals with majors) and independent labels.
- From an artist's perspective, the record label should finance the recording and promotion, such as music videos, advertising and radio play of a musical release.
- One of the major responsibilities of a record label is to distribute music releases to stores.
- Musical artists generally receive a percentage on sales, called a royalty, usually after the related expenses accrued by the record label are recouped.
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