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How much capital would I need to start a record label?

Discussion in 'Starting Your Startup' started by Foxus, Apr 17, 2016.

  1. Foxus

    Foxus Entrepreneur

    How much do you guys expect it would cost to set up shop as a record label?

    - Obtaining a local business permit.
    - Website creation.
    - And so on, and so forth.


  2. T J Tutor

    T J Tutor Administrator Entrepreneur

    I know someone that did this in the 70's and it was over $2MM then to get it going. He sold it seven or eight years later to Caribou Studios for $12MM who then sold to Capital. I don't remember the original label. I think much of it is determined by who you are looking to sign, you know, what level of entertainer. I do know this is an extremely cutthroat business and fraught with some very tough characters. If you have great management skills, a strong demeanor, and thick skin, you can get it done with the right connections.
  3. Foxus

    Foxus Entrepreneur

    I'm trying to look at the stories of how Richard Branson and David Geffen got their humble beginnings in the record business, and see if there's anything I can take from their humble beginnings. From some projected market growth I looked at, 2013 was the strongest year for the record industry since 1999, and 1999 was I believe the year mP3's started becoming big. A lot of indie labels opened shop in the late 90's, some of such now defunct, such as Eyeball and Ferret. By 2020, its forecasted to reach about $17 billion in revenue, a little over half of that in music streaming alone, while physical and downloads only will account for about $5.5 billion.
    This will obviously call for some type of online business model infused in the record labels one.
    T J Tutor likes this.

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