How to set up a record label

Tags: www.musiciansunion.org.uk, www.musicindie.co.uk

Hi guys, Its Matt here from Ditto Music.

When we first set up a label it took us several months, cost us over £400 to get barcodes and was really complicated. So we set up Ditto so that we could offer this service to artists in the same position we were in, and make life a little easier for them.

I remember when I first looked into how to set up a label and the information on the net was sketchy at best, there are several people SELLING ebooks on the subject. Remember , all information is free. There is no magic formula to this, just a process that needs to be followed and if you ever need advice you can just ask.

Remember that with Ditto music, we can take away all of the hassle and set up a label for you for just £25, we can also make you chart eligible and collect your airplay royalties.

Ok, So firstly, think of a name for your label. Something professional that sums up the image and ethos of the music you wish to release. This could be with you for a long time so make sure its something that will still sound good a few years down the line.

Secondly, you will need to become a PPL Label Member. Here are the steps:

1. Email repertoire@ppluk.com for a PPL Repertoire Database login, with your record company, address and telephone number with a contact name.

2. Login online at www.ppluk.com and download the ‘Catco’ software.

3. Input the ISRCs along with your release details (barcode etc) into the software and upload the data to PPL.

4. Once you’ve done that PPL will email you an application pack within 10 days. This is a form that is around 20 pages long.

5. Print it out, fill it in and post it to PPL. It can take anywhere from 3 weeks to 3 months to get it sorted.

6. Once approved you will get your membership number and can start your life as an official record label.

7. Every time you release something you will need to fill out the information on to the Catco database. This is how the Official Charts Company know that your music has been released and is chart eligible.

Ok so now that’s done, you can start releasing music.

For your first releases it’s much wiser to do digital-only. These are chart-eligible, you can’t run out of stock and there are no manufacture costs. You will need some budget for PR unless you are able to do this professionally yourself.

We will blog another time about choosing the right PR team. To raise finance firstly estimate (sensibly) the minimum amount you will need and can realistically get hold of. You may wish to seek government funding. Speak to organizations such as ‘Business Link’ about this. Future blogs will cover the clever ways to get financing.

Which societies should I join?

That’s completely up to you. The only one you actually NEED to join is PPL, mainly to get your ISRCs and chart registration via Catco. If you’re signing bands and releasing their stuff or selling/manufacturing larger amounts (1000+) you should speak to PRS for music (http://www.prsformusic.com). VPL are part of the PPL and collect royalties when your music video gets airplay. Sign up for that along with the PPL.

AIM (www.musicindie.com) is definitely worth joining if you intend on doing business outside the UK. You get generous discounts on trade shows, loads of support, great UK networking events AND it’s all with the Independent Music sector – the people you actually want to do business with.

Musicians Union (www.musiciansunion.org.uk) is good for advice and support but caters for the performer than label.

Do I need a lawyer, limited company, accountant etc?

No. You can join PPL as yourself with no need to be a legal entity at all. You will only need an accountant when your label gets big enough to need one.

Most small (non-limited) labels do their own accounts. As for a lawyer, MU provide legal services, so do CAB. Or ask around for recommended Industry lawyers. DO NOT hire an unknown lawyer.

Jargon:

PPL – ‘Phonographic Performance Limited’ primarily collect royalties for airplay, public performance and ‘new media’. As a label, every time your record is played on the radio you are due some money. You can join as a record label or performer.

ISRC – International Standard Recording Code. A unique 12-character alpha-numberic code assigned by the Label Member to each song registered. This is used by PPL for tracking royalties and by retailers (iTunes etc) for tracking sales.

Catco – Also called ‘PPL Repertoire Database’. The Catco ‘App’ software is the means to transmit data about your releases to PPL. It also registers your for the UK Official Charts, goes to IFPI to stop piracy and to MCPS. Only PPL Label Members can upload valid data.

Barcode – Also called a ‘UPC’. A 13 digit number assigned to the collection of songs. For a cd this is represented by the black and white lined box. For digital releases the number itself. Valid UPCs can only be obtained from GS1 directly or a Solution Provider. Check www.gs1uk.org for details.

Any questions you can email me at matt@dittomusic.com , or just write them at the bottom and ill answer everything there.

Speak to you soon.

Matt

18 Responses to “How to set up a record label”

1. Coquet Shack was registered after discussions with Ditto and we haven’t looked back. Check out the new album at our website.

2. Ray Bowen says:

   November 6, 2009 at 8:48 pm

   Great information!
   You guys have some really cool tips on here, its good to know you help with more than just distribution

1. K-MITCH RECORDS says:

   November 8, 2009 at 4:18 pm

   Knowledge is power, I will act on this knowledge, Thank you Ditto Music!

1. Zuriani says:

   November 10, 2009 at 6:41 pm

   As an American company do I still have to set up a record label in the UK? And 25pounds is all it takes?!! As a writer I’m registered with SESAC. That’s fine right?

1. Versatile says:

   November 19, 2009 at 7:42 pm

   dayum imma read this thoroughly when i get better coz rite now im ill but i know if you guys say its simple ay imma reach

   please look out for my stuff i will update you twitter.com/realversatile

1. iPhone Fan says:

   November 26, 2009 at 6:42 pm

   Thanks for the great post – I had fun reading it! I always enjoy reading this blog.

1. My Blog Title says:

   November 30, 2009 at 1:14 am

   Title…

   FreebieHub is now on Twitter!…

1. Roxie Fesler says:

   November 30, 2009 at 3:00 pm

   Hello, I just now stumbled upon this website whilst I’m searching on Google as I am seeking some material on electric cellos!. I think it’s an informative website so I’ve bookmarked this site and will revisit tomorrow to allow more time for a proper read when I can give it more time.

1. Fingerfoot says:

   December 9, 2009 at 9:27 pm

   Can a company with a US address apply to PPL?

   As an ASCAP member (publisher and writer) am I not getting royalties collected and chart-eligible already?

   Thanks for the info. I love this site.

1. john says:

   December 18, 2009 at 3:02 pm

   Hi,
   I’m in Toronto- is it worth investing in this if I’m going to be playing in Canada much more often than in the UK?

1. TheImmaterial says:

   December 19, 2009 at 2:00 am

   So anyone can create and register a label with the PPL so long as they own the rights to a sound recording?

   So the £25 for ditto means you guys would do it all for me and then just send me all the account details in one neat bundle?

   Are there any additional steps to then making the recording chart eligible? Or is it just a case of inputting the song data and IRSC codes into your PPL account?

   Thank you!

1. Emmanuel Kahembwe says:

   December 27, 2009 at 5:44 am

   Do you mean 2 say that for 25 pounds, you can setup a label from scratch as a fuly fledged music company(i.e registered as a business with all the relevant business authorities), and register it with both ppl and prs? or will i have to do the last two myself?

1. Alex A says:

   February 1, 2010 at 10:04 am

   Wwill this work for someone wishing to set up a label who is based in the USA?

1. Everything You Need To Start Your Own Digital Label. | 7Wins.eu says:

   March 10, 2010 at 8:31 am

   [...] [...]

1. Zapp Whyzz says:

   March 17, 2010 at 2:51 pm

   So for £25.00 you set up everything? do i still need to register with PPL myself?

• AVOID DITTO MUSIC AT ALL COSTS!
  Don’t Ditto - August 20, 2010, 11:35 am
  Avoid Ditto Music at all costs!
  
  Ditto music advertised they would release my album to “over 200 stores” within “4-5 weeks”. It has been FOUR MONTHS, and so far it is only on iTunes (and that took 6 weeks). It also appears on 4 other stores, but Ditto messed up the track names, so the wrong track plays when you click the one you expect.
  
  I paid £55.00 for this + £24.00 a year subscription. Their Co-Founder has refused my request to cancel the release and release it again with the correct track names, because it would cost him a few pounds. Instead I have waited 4 months while they apparently chase the corrections with 200 stores (actually 5).
  
  Even more astonishingly, they are also refusing to pay me the small royalties I did earn during the limited time they put my album up on iTunes with wrong track names before I cancelled in disgust, because these earnings were 'below their payment threshold'. Of course they were! Their delays and mistakes were the cause of that. How unfair and ironic that they then refuse to pay me what little they did generate with my membership fee. So now I have lost my membership fee + subscription + any royalties too!
  
  I wish I had never heard of Ditto Music. Their bad reputation is well earned. I have reported them to Trading Standards and the Insolvency Service’s Companies Investigation Branch. I am pushing for the maximum fine, as they have scuppered my album launch that i worked years towards, completely ruining the creative process for me and losing me many potential sales.
  
  I have told Ditto that if they do the right thing and refund me for a service I did not receive, that I will remove these comments. Instead they threatened me with libel action, but unfortunately they do not seem to understand libel law, as something is only libelous if it is not true. I maintain my offer that if Ditto refund my membership fee for their failure to successfully launch my album onto the stated services after four months, plus the small royalties I did earn from the limited time my album was up with incorrect track names, before I cancelled my membership with them in disgust, then I will remove these non-libellous, factual comments.

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