Back to the Basics

For decades, the record label model seemed fixed: discover artists, sign them, release music, and repeat. That formula, perfected during the mid-20th century, shaped how generations of indie labels thought they had to operate.

But when we zoom out, history tells us something different. The earliest record labels weren’t “music-first” businesses at all. Columbia, Victor, and Edison were companies that made machines—gramophones, cylinders, and discs. Music came second, primarily as a way to sell more hardware.

In other words, labels weren’t just about music. They were about building a business around music.

The Old Model We All Imitated

The version of the record label most of us know is rooted in the 1960s–2000s:

• Sign undiscovered talent

• Develop them into hitmakers

• Release records, sell tickets, sell merch

• Repeat the cycle

This model became the template for small indie labels, too. We looked at the majors and thought, this is how it’s done.

And while this approach worked for a long time, it was never the only way.

The Industry Was Never Stable

Think about it: the music industry has never stood still for longer than a decade.

• 1920s: cylinders → discs

• 1950s: 45s in jukeboxes

• 1960s–70s: iconic LPs

• 1980s: pop stars and cassettes

• 1990s: CDs

• 2000s: Napster and MP3s

• 2010s: streaming

The idea of a single, unchanging business model? It never really existed. Change has always been the constant.

Enter the New Record Label Model

So what does the new model look like today?

It’s not about abandoning music—it’s about building around music. Labels still sign and release artists, but the healthiest, most sustainable labels also create secondary products, services, or communities that expand their impact.

Some examples I’ve seen:

• Merch + Products: HITide Recordings with standout merch, Inner Ocean selling cassette players and sample packs.

• Print + Publishing: Labels that publish zines, books, or posters alongside records.

• Hybrid Businesses: Coffee shops, record stores, and YouTube channels that evolve into labels.

• Studios & Services: Labels that double as recording studios, offering services to artists and generating revenue beyond releases.

• Cause-Driven Models: Labels built around social justice, environmental impact, or supporting underrepresented artists.

This diversity isn’t a distraction—it’s resilience.

Why This Matters for Indie Labels

Major labels aren’t really doing this. They’re focused on massive stars who act, appear in commercials, or headline festivals. Indie labels, on the other hand, can be more flexible, more personal, and more experimental.

When you build a label around your passions—whether it’s coffee, design, education, or technology—you:

• Strengthen your connection with fans

• Diversify your revenue streams

• Create a more sustainable business

• Keep yourself creatively energized

A Permission Slip for Indie Label Owners

If you’ve ever felt like your label doesn’t fit into the traditional mold, here’s your permission slip: stop trying.

You don’t need to chase algorithms or force yourself into someone else’s playbook. Start with what excites you. Maybe it’s music software, vintage gear, zines, artist residencies, or film. Build something real around those passions, with music as part of the bigger picture.

Because at the end of the day:

“Today’s record labels are arts businesses. They’re creative companies. And in many cases, music isn’t the only product—or even the main one.”