Since Music Got Digital – What’s the Role of a Record Label Today?

Artists today can reach audiences directly through digital platforms, social media and streaming services, while smaller boutique labels are gaining importance by focusing on creativity and authenticity.

In his contribution to the IAEL Yearbook 2025, Dirk Spacek (Partner at CMS) explores how record labels are redefining their function in this new environment. His analysis shows that while traditional labels have lost some of their former dominance, they continue to play a vital role as strategic and creative partners. They offer professional guidance, data-driven insights and access to networks that help artists build sustainable careers.

The article also examines the legal implications of this transformation, including questions around recording contracts, rights management, royalty structures and dispute resolution. As the boundaries between major and independent labels continue to blur, clear contractual frameworks and transparent cooperation remain key to a fair and future-oriented music industry.