Record labels, management & publishing: what's the difference?

The music industry can be perceived as confusing and difficult to understand for those who have not been established for a long time. It is an industry that is in the process of healing after a long period of upheaval, such as illegal downloading, which has meant that the major labels that were once numerous in quantity are now only a handful. Today, there are instead many smaller publishers, record companies and management. And this development has had both disadvantages and many advantages for today's music creators.

Music publishing: 

Generally speaking, a music publisher has two main tasks: one is to manage the administration of musical works, i.e. to ensure that your published songs are played in public and that you (and the publisher) receive your rightful remuneration according to the extent and forum in which the songs are performed. The second task is to ensure that the songwriters signed to the publisher receive the support they need to maximize their potential. Examples of how a publisher should assist its songwriters are:

• Paying out advances

• Provide creative feedback on songwriters' works

• Being able to place the songs correctly (e.g. pitching songs to record companies)

• Putting together co-writes between songwriters (and artists)

Record companies:

A record label is basically responsible for its signed bands and artists. As a rule, a record label should provide its artists with help and support to make them as successful as possible. The record company is usually responsible for costs such as music videos, phonogram publishing, PR, marketing and production costs. A record company is usually also the responsible publisher of phonograms (sound carriers) and, depending on the agreement, usually pays the costs of the music video, marketing, PR and production.

Management:

A management is a company consisting of one or more managers. A manager in the music industry mainly works to help their artist(s) on their path to success. It is also becoming more common for a manager to have signed songwriters and producers that he or she helps. Usually, a manager's remuneration consists of a royalty share from the signed artist, songwriter or producer, and depending on the agreement, the percentage can be between 15-25% of the revenue (Management agreements tend to be quite different). What you pay for then is that the manager will put together the signed in co-writes, book any gigs, pitch songs to publishers, record companies and artists. A good manager should help their music creators to have more time to focus on the music.

360-deal:

A 360 company is a combined record company, publishing house and management in one - hence the name "360". If an artist has signed a 360 deal, it means that the other party (the company) in that agreement takes care of everything mentioned in the article. There are many advantages but also many disadvantages to a 360 deal. For example, it can be good, provided you are happy with the agreement as a whole, that everyone in the company is in close contact with each other and in some cases you can negotiate higher percentage royalties for yourself.

However, there is a major drawback to a 360 agreement. A manager, for example, is paid by your royalty partly to be close to you and to help you solve hectic situations. In the event of a dispute between you and your record company, your manager will not be able to help you much because your manager is then linked to the record company. In other words, you are on your own if there is a conflict of interest between you and the other party.