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L1What Does 'Making It' Mean? L2Industry Structure L3Revenue Streams L4Copyright & Sampling L5Career Exploration L6Sound Engineering Deep Dive L7Sound Engineering L8Music Marketing L9Music Entrepreneurship L10Bronx Music Scene L11Presentation Prep L12Career Presentations L13Assessment & Wrap-Up
Lesson 2: Industry Structure 1 / 6
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Industry Structure

Major vs. Indie Labels
Thursday, January 29, 2026 • Unit 3, Lesson 2 • Mr. Mbagwu
DO NOW5 Minutes • Index Card
05:00

The Big Decision

A record label offers you $500,000 to sign — but you have to give up ownership of your music forever.

Would you take the deal? Why or why not?
Write 2–3 sentences on your index card.

Major Labels vs. Independent Labels

MAJOR LABELS

Universal, Sony, Warner (The Big 3)

  • Resources: Large advances, big marketing budgets, global reach
  • Ownership: Label typically owns masters
  • Royalty Split: Artist gets 10–20%
  • Creative Control: Label often has final say
  • Contract: Long-term, multiple albums
VS

INDIE LABELS

EMPIRE, Rimas, 300 Entertainment

  • Resources: Smaller budgets, targeted marketing
  • Ownership: Artists often keep masters
  • Royalty Split: Artist gets 50–80%
  • Creative Control: Artist usually has more freedom
  • Contract: Often more flexible terms

Key Question: Would you rather have a bigger slice of a smaller pie, or a smaller slice of a bigger pie?

How EMPIRE Changed the Game

Founded 2010 in San Francisco by Ghazi Shami

EMPIRE is an independent label and distribution company that proved indies can compete at the highest level. They work with artists like Shaboozey, Kendrick Lamar (distribution), and many Bay Area artists.

EMPIRE gives artists higher royalty splits and lets them keep ownership of their masters — something major labels rarely offer.

EXIT TICKET5 Minutes
05:00

Your Decision

Scenario: You are a new artist with a viral TikTok hit.

A major label offers $1 million advance — but you give up your masters.
An indie label offers $50,000 — but you keep ownership.

Which do you choose and WHY? (3–4 sentences)

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Coming Up Next

Tomorrow: Revenue Streams

Where Does the Money Come From? • The Streaming Math

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