An extended quick overview of the Big 4 record labels. *Now with future tense!

This graph, taken from Wikipedia, shows the distribution of market shares within the music industry (in 2005, so this graph is slightly out of date). The common term for the five sectors of this distribution is the Big 4, consisting of Warner Music Group, Sony BMG, EMI Group and Universal Music Group, who together own 71.7% (according to the graph) of the shares in the industry. The remaining 28.3% of the shares are owned by other, much smaller, independent labels. 

In the industry, there is a form of partnership between the independents and the Big 4 (the majors). The independents often recruit new talent who show new ideas or genres. If successful, the artist, and therefore the label, will gain money and fame, and at this point, a major is likely to buy out the label. In this way, there is a form of synergy between between the independents and the majors - the independents are a source of new talent. Other record labels will find or produce bands with a similar style to this new success, so to gain profit from the new talent.

It is thought that the ever-expanding Online Age will destroy the music industry, with threats such as streaming and piracy, allowing instant access to music at nearly any time, with very little that the companies can do. I think this is possible, but more likely, the record companies will do as they have for over 200 years - evolve.

Computers and the Internet has changed everything - production, distribution, consumption, advertising - and everything else besides. Production can now be done at home with free software and a low-spec computer. Artists no longer even need a band to compose and record, it can be done alone, easily mixing tracks, or entirely recorded using sound bites. Due to this, recording studios are no longer needed for artists to record tracks, cutting the first of the record label's appealing features away. Next comes distribution. The Internet has made this possible for anyone at any time, with free uploading sites such as Youtube, Myspace for videos/music, as well as specialized sites such as "The 41" or "Band Camp" mainly for smaller bands. This is easy to do, and as a result of this, millions have set up accounts (http://www.myspace.com/tomkatband). The next step, which tends to be the greatest problem, is advertising. With so many small bands floating around, it is very hard to get one noticed, even if they shamelessly advertise their band everywhere they can. This has led to a rise in the number of concerts, as a way to get a band heard about. Indeed, concerts have risen in proportion to albums being sold falling.

Record labels can be considered a positive or negative depending on perspective. It can also vary a lot depending on various factors. For example, a band getting signed can be a great thing for a band, allowing them to reach new audiences, and hopefully then boost their audience through label-funded CD's or gigs. This can also be a good thing for the audience. However, some bands complain that their record label prevents them from complete creative control, such as choosing songs to go on an album, how the album is released and the marketing scheme of the band. However, the bigger the label, the less they can afford to risk, signing and marketing mainly bands of a similar genre to what is already popular, which many people argue prevents new music from hitting the mainstream. However, you can't really blame the labels for this behavior - its how they make their business work. Even if the current majors' buildings were all nuked and their business destroyed, other labels would strive to gain new bands and generate more money, and eventually would become more famous than others, allowing them to promote bands more heavily, making the most popular music. Personally, I find that piracy is a new way to finally escape this horrible, nihilistic view of the media, and allows another step in how media is distributed, marketed, and produced to be made in a new, more natural (at the moment) way.