Many people do not understand the concepts of Record labels. They think it ends with just getting a studio and enough money to push a few artistes and songs.
Record labels are companies, big companies with various investors sometimes. Companies like Universal, Sony and many more are so big that they act as both distributors and labels at the same time. Numerous smaller labels are also affiliated to them and they have many artistes doing well under their management.
In Nigeria, the case is different. Every artiste fronts a label and the day their music stops Selling, the label dies with the artistes career. The concept of a record label in Nigeria is extremely different from what is practised in other parts of the world.
Some of the foremost Nigerian labels that had great potentials fizzled out after some years of success, either the owners lost interest in the business or couldn’t find artistes that satisfies them.
Another strange culture in the industry is the oral nature of most of the contracts. Artiste represent labels without signing any official documents or legal documents spelling out the responsibilities of the artiste and the company. This is one of the biggest problem in the industry that has led to the unceremonious exit of many artistes from their record labels.