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How to start a record label in 2025: updated guide

How to start a record label in 2025: updated guide
In 2025, the music industry continues to evolve rapidly: digital distribution, data, AI, and direct-to-fan models are changing the rules of the game. This guide takes you step by step to set up a modern and sustainable label, from the legal foundations to data-driven marketing.

1) Define your vision, positioning, and model

Clarify why you're starting the label, who you're targeting, and how you differentiate yourself. Choose a niche (genre, local scene, aesthetic) and think in terms of “label+”: not just releases, but also publishing, syncing, video content, events, and community.

1.1 Brand identity

  • Logo and corporate image consistent with your scene.
  • Clear website with catalog, press area, and contact information.
  • Social media presence with native formats (vertical clips, teasers, backstage).

2) Market Research and Trends

Analyze similar labels (indie and major), map strengths/weaknesses, estimate costs and resources. Keep an eye on:

  • Independent and direct-to-fan: more artists are building direct revenue (merch, memberships, physical editions).
  • Data: metrics on streams, playlisting, conversions, audience origin.
  • Streaming Fraud: choose partners with anti-fraud policies and transparent reporting.
  • AI: useful for workflow and creativity, but define clear policies on credit and rights.

3) Legal, Tax Structure and Protections

Evaluate the corporate form (e.g., sole proprietorship, LLC) based on budget and risks. Protect your name and logo with trademark registration. Regulate rights with the relevant authorities (e.g., SIAE in Italy) and find out about the requirements in the countries where you will operate.

3.1 Basic legal checklist

  • Check availability and name registration.
  • Artist agreements (royalties, duration, territory, audiovisual rights).
  • AI policy, data transparency and reporting.
  • Tax and VAT management (including cross-border if you sell abroad).

4) Distribution: digital, metadata and releases

Distribution isn't just “andare su Spotify”: you need a partner with tools for split royalties, metadata control, anti-fraud policies and marketing integrations.

4.1 ISRC and metadata

  • ISRC: unique for each master; many distributors generate them automatically.
  • Metadata: artist, titles, versions, featuring, songwriters/publishers, year, genre, mood. Errors here block visibility and monetization.

4.2 Release planning

  • Define calendar, lead time and materials (cover, pitch, canvas, visualizer).
  • Submit tracks early for publishing and pitching opportunities.
  • Prepare alternative versions (acoustic, remixes) to multiply touchpoints.

4.3 Digital Distribution

DISTRID, managed by Mantovani America LLC, is a solution designed for independent labels: distribution on major DSPs, a simple interface, transparent rates, and ISRC management. Useful if you are looking for speed of operation and clear reporting.

5) Scouting and artist contracts

Discover talent on TikTok, Instagram Reels, SoundCloud, contests, and local scenes. Evaluate music, image, project coherence, and teamwork skills.

5.1 Modern contractual models

  • Distribution-only: the artist keeps the masters, revenue share on the proceeds.
  • Licensing and hybrid agreements (sync, merch, events).
  • Data transparency: access to essential metrics and timely reporting.

6) Promotion and community

Integrate digital and traditional. Uploading alone isn't enough: you need an editorial plan, content, and PR.

6.1 Social and content

  • Native short clips for vertical platforms.
  • Storytelling: making-of, backstage, recurring formats.
  • Collaborations with micro-influencers and creators.

6.2 PR, radio and media

  • Press kits, press releases, magazine and podcast pitches.
  • Press office and radio promotion for key individuals.
  • Showcases, release parties, event partnerships.

6.3 Data-driven marketing

  • A/B testing of creative, targeting, and copy.
  • KPI monitoring: saves, completion rate, stream-to-follow, ROAS.

7) Finance, royalties and monetization

Set budgets and management control. Automate where possible, maintain transparency and traceability.

7.1 Typical cost items (indicative)

Vocals Notes
Legal and brand setup Incorporation, trademark registration, consulting
Production Recording, mixing, mastering, artwork
Distribution Platform fee or revenue share
Marketing/PR Press office, radio, social media/DSP advertising
Operations Tools, SaaS, staff/partners

7.2 Revenue beyond streaming

  • Sync (film/series/advertising/videogames).
  • Merch and physical editions.
  • Events, live events, and paid live streaming.
  • Fan bundles, memberships, crowdfunding.
  • B2B services to other artists (promo, distribution, consulting).

8) Growth and scalability

  • International expansion and cross-border agreements.
  • Dedicated teams (A&R, marketing, sync, data).
  • M&A of small catalogs and thematic sub-labels.
  • Policy on the use of AI and protection of creative value.

Quick FAQs

How much budget do I need to get started?

It depends on your ambition: you can start “lean” with a few thousand euros, focusing on digital and essential services, or plan more structured investments (production, PR, and team).

Are singles or albums better?

In 2025, the serial nature of singles works well for discoverability and algorithmic optimization. Albums remain strategic for strong storytelling and press moments.

How to avoid streaming fraud issues?

Work with distributors like DISTRID who apply controls, curate metadata, monitor anomalies, and maintain transparent reporting with artists.


Need help?

I am an expert in copyright and digital distribution, with over 20 years of experience. I can support you in starting and operating your label. I also specialize in consulting for starting publishing companies abroad: together with my team, we can help you structure yourself in key markets and really earn money with your music.

Book a meeting to define the strategy, choose the right partners (distribution, PR, sync), set up contracts and royalties in a clear and scalable way.

    Schedule a Meeting!