In the past, record labels managed much of the administrative workload for artists, including drafting and executing agreements with collaborators such as producers, mixers, featured artists, and session musicians. Today, that support has dwindled, leaving artists to navigate these complexities on their own.
This shift is not arbitrary. It reflects deeper trends in the music industry. Let’s explore why this is happening and how platforms like Songpact can step in to fill the gap.
1. Reduced Margins in a Changing Industry
The music industry has transformed dramatically over the past ten years. Streaming now dominates revenues, and independent distribution models have become the norm. Labels must offer competitive deals to stay relevant, inevitably resulting in thinner profit margins.
To offset declining margins, labels are cutting back on services. Particularly those that don’t directly generate revenue. Handling collaborator agreements, which are time-consuming and labour-intensive, has been deprioritised.
2. Flat or Declining Headcount
Labels and artist services companies are operating leaner than ever. Major label groups are consolidating at an unprecedented scale, further reducing staffing levels. For example, Universal Music Group has streamlined its operations, consolidating its frontline labels. Similarly, Warner Music Group recently merged Parlophone into Warner Records.
These consolidations have left in-house legal and business affairs teams increasingly overstretched, especially as the number of creative collaborators on a single record has grown significantly in recent years. As a result, labour-intensive and time-consuming tasks, such as managing contributor contracts, are often delayed, left incomplete, or passed onto artists. This shift places an additional administrative burden on artists, forcing them to navigate complex agreements themselves.
3. Shift from Copyright Assignment to Licensing
The way labels and distributors work with artists has also evolved. Historically, labels required artists to assign their copyrights, making the label responsible for handling contributor agreements.
Now, many deals are structured as licences, where artists retain ownership of their work and grant the label or distributor limited rights to exploit it. While this gives artists greater control, it also shifts the responsibility for managing legal agreements directly onto their shoulders.
The Challenge for Artists and Their Teams
These industry changes leave artists and their teams to tackle complex legal and administrative tasks, often without the resources or expertise to do so efficiently. This can lead to:
- Missed Deadlines: Caused by incomplete or unclear contracts.
- Slow or No Royalty Payments: Delays in finalising agreements can lead to payment issues down the line.
- Financial Risks: Disputes over ownership or royalties that could have been avoided with proper agreements in place.
- Relationship Strain: Misunderstandings between collaborators due to a lack of transparency or formal documentation.
How Songpact Can Help
Songpact empowers artists and collaborators to take control of their agreements in a simple, affordable, and effective way:
- For Artists: Quickly create, customise, and sign contracts without needing expensive legal advice.
- For Collaborators: Establish clear terms upfront, avoid misunderstandings, maintain strong relationships, and ensure payments are handled efficiently.
- For Labels: Work with artists who have a clean chain of title for their music, reducing delays, takedown requests, and legal risks without burdening your team.
The Future of Music Contracts
As the music industry continues to evolve, the need for streamlined administrative solutions will only grow. Artists, collaborators, and labels require tools that simplify the paperwork while protecting their rights.
Songpact delivers that solution, enabling you to focus on what you do best: creating, supporting, and sharing great music.
Ready to take control of your music agreements? Sign up for Songpact today.