Major labels have already showed indications of declining in the music industry, especially record industry. These once a gargantuan corporations has already crumbling.
There is an ongoing trend that many musicians no longer see major label as major as it used to be. Labels as such has taken hit from the development of the internet and its ever productive music downloads.
Many musicians and bands of musician now choose to produce their music without the assistance of major labels. As early as they can gather adequate capital to start production, the process may start right away. And the money can be from anybody, anywhere. Many of these musicians enters independent labels, indie.
So major music labels are now only clinging to its enormous network in the industry which has been established since the birth of the recording industry. And to those musicians, the real selling point of the labels is just the extensive distribution network.
Musicians know that distribution needs a really good management, and it is not easy to supply records to thousands of record store around the globe.
In sum up, music labels are receiving less production contract deals and taking more distribution deals instead. Many indie record labels have sprung up in the last few years, taking few artists each, producing quite a sum of albums.
Since indie labels usually do not have a vast network in distribution, they make deals with major labels concerning distribution of the records. Majors then distribute the records to many retail networks all around the globe. In exchange, majors usually have their own split of revenue of the record sales or other deals.
Many world-class artists once endorsed by major labels have left the the labels and set up smaller labels for themselves, or even joining quality indie labels.
In short, major labels are still on the top of the mountain, but the reign is crumbling fast. Now the labels are moving towards to becoming giant distributor agents, shrinking in business and of course profit. Making them smaller than ever.
By then, the reign of major labels will collapse and replaced by new players in the business. New names will be heard in the business, not the ones we hear nowadays. They are not going to be as gigantic as the ones before because the lesser role they play in the business as I predicted in this post, as live performances are regarded more than before.
We also have to realize that distribution business takes place in the internet, a threat in the physical record distribution business. This type of distribution can be done by almost everybody, as long as they are equipped the facility. Even a mediocre label can invest to build an internet music distribution application on the web. This will hit the major label even more.
As a result, the recording industry will not as huge or powerful as it is now. The trends are marching that way. Indeed, the recording industry will slowly consumed by the emerging music performance.
Again, I ask you to wait and see.
Here are the current major labels