In this article, we have given comprehensive information about how Record Labels make money in Nigeria. Record Labels exist as businesses intended to make profit just as every other business entity. There are different Record Labels. Most of them are established to manage and promote secular artists while others are focusing on gospel music, yet, some of the Record Labels specialize in traditional music. jamb result
Whatever may be the focus of record labels, their goal is generally to make money, whether based in Nigeria or elsewhere in the world. They invest large sums of money in established and upcoming music artists in order to have a good return on their investment, which is to make money. Before we look at the ways Record Labels make money in Nigeria, let us look at what exactly a Record label is. Information guides Nigeria
What is a Record Label:
A record label, otherwise called Record Company according to Wikipedia, is a brand or Trademark of music recordings and music videos, of the company that owns it.
Below is a list of some popular Record Labels in Nigeria:
- Mavin Records: This Record Label is owned by Don Jazzy and has been in the recording business in Nigeria since 8 May, 2012.
- Kennis Music: Kennis Music is a household name in Nigerian Music industry founded by a popular Radio DJ Kenny Ogugbe in 1998.
- Edge Records: This record label is a Nigerian record label founded by Ibrahim Okulaja in 2005.
- Hypertek Digital: This is a record label founded by the famous recording Artiste 2Baba in 2013.
- Mo’Hits Records: Mo’Hits is a Nigerian Music recording company co-owned by D’banj and Don Jazzy founded in 2006. Mo’Hits specialises in Afobeat.
- Loveworld Records: This is a gospel and independent music recording company founded by the popular Televangelist, Pastor Chris Oyakhilome. Loveworld Records is an example of record labels that focuses on Gospel music. Record Labels Make Money
There are many more Record Labels in the country, but at this juncture, let us look at the requirements to start a Record Label in Nigeria.
A business plan will serve as a blueprint or road map to your activities as a Record Label. Your plan must cover important information, like a market research finding or feasibility study which will help you determine the nature and profitability of the business. NNPC recruitment
Establishing and running a music recording company in Nigeria is capital intensive. So you need a huge sum of money to buy equipment and run ads and promos that will attract artists to your studio.
You have to acquire modern and state-of-the-art equipment to set up your recording studio. If your equipment does not meet up with the standards of the time, you will find it difficult to convince artists to choose you as their Record Label.
You need to be well connected to be able to make it as a record label in Nigeria. That is why most of the record Labels listed above are owned and managed by established recording Artists themselves.
Read Also: 10 Best Skills to Make Money in Nigeria
Types of Record Labels
There are 2 types of Record Labels in Nigeria.
Major Record Labels:
A major Record Label is a music recording company with global reach. They are Record labels operated as multinational corporations with a universal coverage that are sometimes controlled by larger conglomerates. Examples of major Record Labels are the big three namely: Sony BMG, Universal Music Group and Warner Music Group.
2. Independence Record Labels:
These are record labels that operate outside the control of the larger music recording companies i.e. the big three listed above. They are popularly called Indie Record Labels who grow at their own pace and may have complex structures as well.
How Record Labels Make Money in Nigeria
Founding a Record Label in Nigeria demands huge capital and nobody would be investing his/her money where there is no potential to make money. They take calculated risks to invest in Artists so that they can make money as profit when the said Artists succeed in their careers. The Record Labels can achieve that goals through different strategies outlined below:
Record Labels help in the promotion of their Artists music so that there will be increase in sales of their albums. The more copies of albums sold, the more the money that goes to the Record Labels as profit for investing in the Artists. dollar to Naira rate
Record Labels also make millions of naira through special tours they organise for the Artists or other tours they work ways for the Artists to participate in.
Licensing of Music:
Record Labels make money by licensing the music of their Artists for use by the Media in return for adverts, Radio commercials or advert visuals on TV shows, movie soundtracks etc. The Media organisations using the licensed music pay big money to the Record Labels. However, the said licensed music has to be registered with appropriate agencies so that the licensing will not incur any regulatory penalty. How to Make Money Selling Baby Items in Nigeria
Marketing the Artists:
Record labels also make money by marketing the Artists under their management. The Record Labels may adopt different marketing strategies to promote the Artists so as to increase their value and popularity and then wreck in their money.
The Record Labels also make money in Nigeria by organising concerts and shows for the Artists. They make money through sales of tickets and tables for the concerts.
The record Labels also make money by merchandising the Artists through customised items such as T-Shirts, Face Caps, Bangles etc.
Nevertheless, the money for Record Labels can only come in when the Artists become successful in their careers. 10 Best Blog Niches that Make Money in Nigeria
How Record Labels Help Artists’ Careers
The obligation of a record label is to manage the Artistes who are in a contract with the Record Label for the period covered. During the time of the contract, the Record Label guarantees the Artists’ successes as Musicians by distributing their songs and promoting the signed artists as brands. The Record Label is also responsible for connecting the Artists to fans. After a Record Label has helped the artists build a large fan base, it then distributes their album to their extended audience in both soft and hard copies, and then share the money that come in as result of such campaigns. JAMB CAPS
It is believed that you have become more enlightened about how Record Labels make money in Nigeria. You must have also known in real terms what we mean by Record Label, types of Record Labels, some popular Record Labels in Nigeria, and how they help Artists succeed in their careers. In case you have interest in establishing a Record Label in Nigeria or choosing one as an Artist, this article can serve as a basic guide.
Check and Confirm: How much is Dollar to Naira today.
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