What role will independent record labels play?
Independent record labels are already playing a much stronger role in the business than they were a few years ago. Home recording gear has enabled artists to make records for much cheaper these days. CD manufacturing is also cheaper. Promotion is more accessible via the Internet. All of these factors allow the smallest of labels to keep their expenses to a minimum and potentially turn a profit. As a result, the labels are more likely to work with developing the artist over the long-term, which is of course more attractive to artists. What clause in artists contracts with record companies would you like to get rid of? Something called the controlled composition clause. When you are the songwriter of a song, by law you are entitled to what is called a statutory mechanical royalty, which means that the record company pays for the use of your song on a phonograph record. The current statutory rate is eight US cents for compositions under five minutes. With the controlled composition clause
