Record companies

There are dozens of record companies operating in the Netherlands. Many of these record companies have different labels and are focussing on specific genres. Most of the record companies are affiliated with the Dutch Association of Producers and Importers of Image and Sound Carriers (Nederlandse Vereniging van Producenten en Importeurs van beeld- en geluidsdragers, NVPI).

Majors and independents

Three globally operating record companies largely control the market. These multinationals have developed into groups with countless production branches and subsidiaries. For example, Universal is also the owner of Universal Studios. These record companies, together with their subsidiaries, focus on pop, jazz and classical music.

In addition to the three majors, there are many independent labels. These range from large to small. At these record companies you will find alternative and innovative music. For pop music you go to Pias Rough Trade, CNR, Epitaph, Excelsior, V2 Records and the smaller Supertracks and Unexpected Records. The larger Dutch Challenge Records focuses on classical music, jazz and pop. Labels such as Zennez Records, Trytone and Dox Records focus specifically on jazz music. And Channel Classics specifically on classical music.

The independent labels are united under a sub-platform of the NVIP in the Stichting Onafhankelijke Muziekproducenten (Independent Music Producers Foundation, STOMP). The independent labels often outsource the distribution of the albums to the major labels. It also regularly occurs that the majors take over an independent if that label or an artist on the label is successful.

Record contracts

Agreements with a record company are laid down in a record contract. You often sign for a specific period: mostly for one album with an option on the following record. Depending on the contract, the record company will possibly receive part of your copyrights and revenue from merchandise and live shows. The extent to which it makes sense to agree to this depends on your personal situation and the efforts that the record company is going to make. That is why you should always seek the support of a specialised lawyer when negotiating a record contract.

Deals
There are various deals possible with a record company. These are the most common deals:

  • Artist deal: the label will own your masters, but the record company will pay for the recording costs and everything else related to the production. They will therefore also be the master rights owner. To put it simply, you will no longer be the owner of your own music. The label will take care of distribution and promotion further.
  • Licensing deal: the label will take care of distribution and promotion. The band will pay for the recording costs themselves and will own their masters.
  • Distribution deal: the label will ensure that the record is in the shops. The band will pay for the recording costs themselves, will own their masters and take care of the promotion themselves.

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Copyright

Tasks of a label

A label ensures that your music is available in the various online shops. Examples include streaming platforms (DSPs or Digital Service Providers), such as Spotify, Apple Music and Deezer. Other examples include download platforms, such as iTunes and Google Play, although they are generally considered less important than the DSPs. Depending on the agreements that you make with the record company, you can launch your music simultaneously worldwide, or follow a strategy per country.

There are independent companies that can help with the online distribution of your music without a record company, so-called ‘aggregators’. Examples include Tunecore, CD Baby or Distrokid. In that case, you pay a fixed amount per stream or per year.

Distributors and wholesalers take care of the physical distribution of records. Anyone who released an album independently must look themselves for a distributor, wholesalers and/or record shops that want to purchase the album or take it on consignment. The industry association for record dealers is the Nederlandse Vereniging van Entertainment Retailers (Netherlands Association of Entertainment Retailers, NVER).

Employees
The Artist & Repertoire manager (A&R manager) plays an important role within a record company. He/she is a talent scout who signs band and gives them concrete guidance during the entire process from the recordings until the release of an album.

Marketing and promotion
A plugger ensure that the music gets to the radio and TV stations after it is released and pitches the music to the playlist compilers from the streaming platforms. The PR department arranges interviews and reviews in newspapers, blogs and magazines. The content department takes care of the social media strategy in consultation with the artist and tries to reach or increase the target audience in the optimal way on the basis of the underlying data.

The product manager or brand manager oversees the entire process of distribution, marketing and promotion. Independent labels, and artists who self-release an album, often make use of freelance pluggers and promotional staff.

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Marketing

Publicity