It is the Record Labels job to create and distribute records.
In exchange for money Record Labels obtain the right to copy and
distribute an artist's record. The record company provides a recording
agreement for the artist to sign that states the terms of their
agreement. The Record Label obtains the exclusive right to reproduce
the artist's material in exchange for a cash advance and mechanical
royalties. There are many types of Record Labels and they all
have their benefits and disadvantages. There are Major Record
Labels, Mini Major Record Labels and Independent Record Labels.
The biggest Major Record Labels are Sony, Universal, WEA, and
BMG. Some of the other Major Record labels are Warner Bros. Records,
DreamWorks, RCA Records, MCA Records, Capital Records, Atlantic
Records, and Columbia Records. A Mini Major Record Label is a
company that affiliates with a major record label. How this works
is the Mini Major Record Label usually signs it own acts, promotes
its own artists, produces its own records and has the Major Record
Label distribute the records. The two Companies will split the
profits from this joint venture by a certain percentage, usually
in the favor of the Major Record Label. An example of a Mini-Major
Record Label is Geffen, Interscope Records, Black Ground Records,
Priority Records, Bad Boy Records and Maverick Records. Some examples
of Independent Record Labels are No Limit Records, Aftermath Records,
Priority Records, SideOneDummy Records & American Recordings.