Record Labels

Record Labels are used primarily to promote an artist or band. By using a record label the band or artist can have their music used within media products such as films, television programmes and/or promotional advertising.
The record label can also help the songs and the overall music of the artist develop, in style and also that of pleasing the masses, with the support of people that can do the research.
A record label is essentially a publishing company, it will ensure that the music is recorded and sold as an album and/or single.
Record labels are also a good thing in the music industry, because they manage to find and nurture talent, mainly give the head start to bands that are not confident in business, it allows bands to create a career out of their music.

The way in which Record labels sign deals is by giving the band an "advance", which means an amount of money to get the career going, then they will slowly be payed back with profit that the bands make, this gives bands that have signed with record labels a headstart over the bands that are trying to make it in the music industry independantly.
To gain money, Record Labels have Revenue Stream which means the income, the ways in which they make profit are by:
Selling music
Selling tickets to live gigs/concerts/festivals
Selling Merchandise that relate to the band
If the song is played on a television show, advert or film
Film soundtracks
Covers of the original song, done by a different artist
Video games.

In the music industry, there are "The Big Four" Record labels, these are

Universal Music which is the record label for artists like Eminem and Lady Gaga
EMI Music which is the record label for artists like Tinie Tempah and Katy Perry
Sony Music which is the record label for artists like Britney Spears and Foo Fighters
Warner Music Group is the record label for artists like Paolo Nutini and Green Day.