Are Traditional Record Labels Dead? Do Independent Artists Still Need A&R?

10/28/25

The short answer? Traditional record labels aren't dead, but they're definitely not the same beast they were even five years ago. If you're an independent artist sitting in Nashville (or anywhere else) wondering whether you should chase a label deal or forge your own path, you're asking the right questions at exactly the right time.

The music industry in 2025 looks nothing like the industry that built careers for Johnny Cash or even Taylor Swift. Labels still exist, A&R reps still have jobs, but the entire power structure has flipped on its head. Let's break down what's actually happening behind the scenes and what it means for your career.

Labels Are Adapting, Not Dying

Major labels like Universal, Sony, and Warner still control massive chunks of the industry, but their role has fundamentally shifted. These companies are no longer the gatekeepers they once were: they're more like specialized service providers for artists who've already proven they can draw crowds. In 2025, these labels are actively buying up indie catalogs, investing heavily in AI music tools, and offering way more flexible deal structures than the iron-clad contracts of the past. The days of signing your life away for seven albums are largely over. Instead, labels are offering limited-term deals, distribution-only agreements, and hybrid arrangements that let artists keep more control over their music and careers.

The biggest challenge facing traditional labels? Streaming killed their old business model. When physical album sales and digital downloads were king, labels could make serious money. Streaming royalties generate a fraction of that revenue, which means labels had to completely rethink how they operate and where they invest their resources. But here's the thing: they're still valuable for specific goals. If you want your song on every major playlist, massive radio promotion, or the kind of marketing budget that gets you on billboards in Times Square, major labels still have resources independent artists simply can't match.

A&R Has Completely Changed

Remember the stories about legendary A&R scout John Hammond discovering Bob Dylan in a Greenwich Village coffee shop? Those days are over. Modern A&R teams spend more time scrolling TikTok and Instagram than they do in actual music venues. Today's A&R reps aren't looking for raw talent in dive bars anymore. They're hunting for artists who already have significant social media followings, streaming numbers, and proven fan engagement. The traditional model of discovering unknown artists and building their careers from scratch has been replaced by a much more calculated approach.

A&R now typically steps in much later in an artist's development timeline. Labels want to see market traction first: streams in the hundreds of thousands, sold-out regional shows, viral moments, industry buzz. They're essentially betting on horses that are already winning races rather than training thoroughbreds from colts. This shift means independent artists need to build their own foundation before labels even consider them. You need to prove you can create and maintain an audience, generate income, and handle the business side of music before a major label A&R rep will return your calls.

Independent Artists: Do You Actually Need A&R?

The honest answer for most independent artists is no: at least not in the traditional sense. Artists like Chance the Rapper built entire careers without ever signing to a major label. Russ has sold millions of records and packed arenas while maintaining complete independence. The tools exist to succeed without traditional industry gatekeepers. Modern independent artists can record professional-quality music in home studios, distribute globally through services like DistroKid or CD Baby, build audiences on social media platforms, and book their own tours through direct fan engagement. The barriers that once made record labels essential have largely disappeared. But independence comes with trade-offs. You're handling everything yourself: recording, marketing, booking, finances, legal issues, and creative decisions. That's either incredibly freeing or completely overwhelming, depending on your personality and goals.

The value proposition of labels depends entirely on what you're trying to achieve. Want complete creative control and ownership of your music? Stay independent. Want someone else to handle the business side while you focus purely on creating? A label partnership might make sense. Looking for massive mainstream exposure that reaches beyond your current fanbase? Major labels still have unmatched reach and resources.

The New Industry Landscape

The 2025 music industry operates more like a ecosystem than a hierarchy. Indie labels focus on artist development and creative freedom. Major labels concentrate on artists with proven market appeal. Distribution companies handle logistics. Management companies provide strategic guidance. Artists can mix and match these services based on their specific needs and career stage.

Revenue streams have diversified beyond traditional record sales. Sync licensing for TV and film, merchandise sales, brand partnerships, live performances, and direct fan support through platforms like Patreon create multiple income paths that don't require label involvement. The most successful artists in today's landscape often combine elements from both worlds. They might start completely independent, build an audience and income stream, then partner with labels for specific projects or territories while maintaining ownership of their master recordings and creative direction.

What This Means for Your Career

If you're an independent artist trying to figure out your next move, consider your actual goals rather than chasing outdated ideas about "making it." The traditional path of getting discovered, signed, and having your career managed by a label is largely extinct. Instead, focus on building sustainable systems: consistent content creation, direct fan relationships, multiple revenue streams, and professional-quality output. Labels will notice artists who've already built something valuable, not artists hoping someone else will build it for them.

The artists succeeding in 2025 treat their music careers like businesses from day one. They understand their audience, track their metrics, diversify their income, and make strategic decisions based on data rather than dreams. Traditional record labels aren't dead, but they're no longer the only path to a successful music career. In many cases, they're not even the best path. The real question isn't whether you need a label: it's whether you're ready to build something valuable enough that labels need you.

Ready to take control of your music career? Learn how Nashville industry professionals can help you build a sustainable, independent music business at For The Record