How record labels work in India, what A&R does, the difference between major and indie labels, and how to think about signing — or not signing — a label deal.
What Is a Record Label?
A record label is a company that signs artists, funds recordings, handles distribution, and uses its marketing resources and relationships to build the artist's commercial profile. In exchange, the label typically takes a significant percentage of the artist's recorded music revenue and, in many cases, owns the master recordings.
Not all labels work the same way. The deal terms vary enormously — from a full 360-degree deal (where the label takes a cut of live income, merch, and publishing as well as recordings) to a simple distribution deal with a label imprint (where the label takes a minimal cut in exchange for distribution muscle).
The Indian Label Landscape
MAJOR LABELS (operating in India):
Sony Music India: One of the largest labels in India by market share. Strong in Bollywood, film soundtracks, and some indie/fusion acts. Has signed artists like Prateek Kuhad and others in the indie space.
Universal Music India: Strong pop, Bollywood, and international catalogue. Indian operations include Indian Terrain (A&R for Indian market). Has global resources for marketing crossover artists.
Warner Music India: More selective India-specific signings. Global reach for Indian artists with international appeal.
INDEPENDENT LABELS (India's growing indie ecosystem):
Azadi Records: Delhi-based hip-hop focused label. Home to Seedhe Maut, Prabh Deep, Sez On The Beat, and others. Arguably the most creatively significant Indian indie label for hip-hop and alternative.
Pagal Haina Records: Mumbai-based. Home to artists like Lucky Ali and others. Known for quality over volume.
Underscore Records: Based in Bengaluru. Focus on alternative and electronic music. Known for careful artist development and curation.
Magnetic Fields Records: Boutique imprint connected to Magnetic Fields festival. Curated and selective.
Distribution Arms with Label Functions
Believe Digital India, OKListen, and TuneCore Publishing all offer services that blur the line between distributor and label — offering marketing support, playlist pitching, and advance funding alongside distribution.
What A&R Does
A&R stands for Artists & Repertoire. The A&R function is the talent-scouting and artist development arm of a record label.
What an A&R person does:
- Discovers and signs new artists
- Helps shape the artist's recording vision (song selection, production direction, collaborators)
- Acts as the internal advocate for the artist within the label
- Coordinates between the artist and the label's marketing, PR, and distribution teams
- Monitors trends and identifies what the market wants vs. what artists are creating
A&R in India: The formal A&R function at major labels in India is small compared to Western markets. At independent labels like Azadi Records, the founders often serve as both A&R and management. At major labels, India-based A&R staff look for:
- Artists with an existing following (Spotify, JioSaavn, Instagram) — few labels sign completely unknown artists
- Artists who fit their existing roster identity
- Artists with international potential (English-language or crossover appeal)
- Artists creating in Hindi, Tamil, or other Indian languages with proven regional audiences
Label Deal Structures in India
Traditional Label Deal
- Label funds recordings, marketing, and distribution
- Label owns the master recordings (often forever, or for a long licence period)
- Artist receives a royalty of typically 15–25% of net revenues (after recoupment of advance)
- Recoupment: The artist's advance must be "paid back" via royalties before the artist receives additional royalty payments. Most artists on traditional deals never recoup.
Licensing Deal
- Artist retains ownership of master recordings
- Artist licenses the recording to the label for a defined term (e.g., 10 years for India)
- Label funds marketing and distribution
- Artist receives a higher royalty rate (typically 50%+) and regains ownership at end of term
- Better deal for artists with leverage
Distribution Deal
- Label (or label-distribution hybrid) takes a fee or small commission (10–25%) for distribution and marketing services
- Artist retains full ownership of masters
- Artist funds their own recording costs
- Best for self-sufficient artists who just need reach
360-Degree Deal
- Label takes a percentage of ALL the artist's income: recordings, touring, merch, brand deals, sync
- Common at major labels for artists they develop from scratch
- Generally unfavourable for artists who already have other income streams
- Avoid unless the label's investment and support is genuinely exceptional
When Does a Label Deal Make Sense?
A label deal makes sense when:
- You need funding you cannot raise independently (for a large-scale recording, music video, or tour)
- The label has specific resources you cannot replicate: film/TV sync connections, Bollywood networks, international marketing
- The label's artist roster creates meaningful association and credibility
- The deal terms allow you to retain meaningful control over creative decisions
A label deal does NOT make sense when:
- You can self-fund your recording and distribution
- The label's royalty rate is so low that you would earn more independently
- The label wants 360-degree rights for a modest advance
- The term is too long and you would be locked in with no exit
RULE OF THUMB: Have an entertainment lawyer review every label deal before signing. No exceptions. A bad deal signed in excitement at the start of your career can constrain you for a decade.
How to Get A&R Attention in India
1. Build the numbers first. No Indian A&R signs an artist with zero audience. Get to at least 10,000–20,000 monthly Spotify listeners and a growing JioSaavn presence before approaching labels.
2. Get covered by credible media. A Wild City or Homegrown feature is seen by Indian A&R. A Rolling Stone India mention carries weight at major labels.
3. Play the right stages. Festival slots at NH7 Weekender, Magnetic Fields, or Ziro attract industry attention. A headline show at Humming Tree or High Spirits signals local market viability.
4. Have management. An artist with professional management signals readiness. A&R prefer to negotiate with managers, not directly with artists.
5. Make music that is unmistakably yours. Indian indie A&R are increasingly looking for genuine distinctiveness, not Spotify-algorithm-optimised content.
Questions to Ask Before Signing with Any Label
1. Who owns the masters, and for how long? 2. What is the royalty rate and what is deducted before royalties are calculated? 3. What is the advance, and what exactly must recoup before royalties are paid? 4. What is the recording fund (separate from advance)? 5. What creative control do I retain? 6. What happens if the label doesn't release my music (failure to release clause)? 7. What is the territory — India only or worldwide? 8. Is there a reversion clause (rights return to artist after a period)? 9. What is the exit clause if the relationship breaks down? 10. What specific marketing and PR support will the label provide, and is this contractually guaranteed?
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Free to use · Part of the Indie Music India toolkit · Updated September 2026