It's time to take a look at the music industry. If you're a performing musician, it's important to know how each element in the industry functions. Following is a brief description of some key players and movers and shakers in the music industry.

Major Record Labels

Universal Music Group, Sony Music Entertainment, EMI Group, Warner Brothers Music, and BMG Entertainment are collectively known as the Big Five record labels. These are massive, global corporations, and each company has several subsidiaries. Most of the CDs and records you own were probably released by one of these music conglomerates.

Getting signed to a major label is increasingly difficult. However, if your band is selling a lot of CDs, charting in an industry magazine, and playing to large audiences in established clubs, you just might see an A&R (artist & repertoire) representative scouting you out. But beware: always seek the counsel of an entertainment lawyer before signing any contracts with record labels.

Independent Record Labels

Independent record labels are becoming more and more influential since they often break new artists. Some indie labels are becoming so successful they have even become substantial corporations. Despite their independence, major labels still tend to distribute music released by indie labels. For example, Universal Music distributes albums by the well-known jazz label ECM. Nonetheless, indie labels have become a practical solution for musicians looking to break into the scene. More and more musicians are creating their own indie labels too.

Clubs

Clubs give musicians a chance to strut their stuff in front of an audience. You get gigs at clubs by convincing owners, promoters, and/or booking agents that you have some audience draw. Compensation at clubs varies greatly. If you're well established, you can usually ask for monetary guarantees. If you're a newcomer or an unknown artist, you might get paid a percentage of the entrance fee. This is usually called “the door.” No matter what the situation, it's very important to promote your event. If you can't put butts in seats, you won't get asked back.

Promoters and Booking Agents

Promoters and booking agents come in all shapes and sizes. Some are aboveboard professionals; others can be shady spin doctors. Both are in the business of making money for themselves, but they do help bands get work and help to spread the word about concerts through their various promotional ideas and schemes. Often, promoters and bookers put together package deals to sell a concert to the public. For example, they might hire three, four, or five bands to play one after another at a given venue. Even if the bands don't have a big draw, the rotating crowds keep the ticket and bar sales up. Festivals work the same way only on a larger scale.