A friend of mine got offered a deal from a major label subsidiary last month. She called me excited, and I hated being the person who said, “Read the contract very carefully before you sign anything.”

She read the contract. Then she called me back, much less excited.

The deal offered her a $30,000 advance against 18% of net revenue, with a 360 component that took a percentage of her touring, merchandise, and sync income. The label would own her masters for fifteen years. There were multiple option periods. The marketing commitment was vague. The creative control provisions were minimal.

She didn’t sign. She’s doing better as an independent artist than she would have done under those terms. Not every artist is in that position, but more are than you might think.

The Math Has Changed

In the CD era, major labels controlled distribution. If you wanted your music in stores, you needed a label. That distribution monopoly justified the unfavourable terms — you were paying for access to a system you couldn’t access otherwise.

That monopoly no longer exists. DistroKid, TuneCore, CD Baby, and other services will put your music on every major platform for a fraction of what a label takes. Distribution is a commodity, not a competitive advantage.

What labels still offer is marketing, playlist relationships, radio promotion, sync placement, and industry connections. These have real value. But are they worth 80-85% of your recording revenue and a significant chunk of your other income streams?

For most Australian artists, I’d argue no.

The Revenue Comparison

Let me work through a simplified example.

An independent artist releases an album that generates 5 million streams in its first year. At roughly $0.004 per stream through an independent distributor, that’s $20,000. The distributor takes maybe $50 (flat fee). The artist keeps $19,950.

The same artist signed to a major generates the same 5 million streams. The label might push that to 8 million streams through marketing and playlist muscle. At $0.004 per stream, that’s $32,000 in gross streaming revenue. The label takes 82% after expenses. The artist sees maybe $5,760 — and that might be against an unrecouped advance.

The independent artist made three times as much money from fewer streams. The label would need to generate roughly 25 million streams to match the independent artist’s income, and even then, the artist doesn’t own their masters.

What Labels Still Do Well

I’m not saying labels are useless. For specific artists in specific situations, a label deal makes sense.

International expansion. If you want to break into the US, UK, or European markets, major labels have offices, relationships, and promotional infrastructure in those territories that independent artists can’t easily replicate.

Certain genres. Pop music, in particular, benefits from the kind of coordinated, multi-platform marketing campaigns that major labels specialise in. If you’re making music that targets mainstream commercial radio and major playlists, a label’s resources can be the difference.

Financial runway. If you need an advance to fund a specific project (a high-production album, a major tour, a music video), a label can provide that capital. But so can grants, crowdfunding, and private investors — often on better terms.

Industry relationships. Labels have relationships with sync agents, playlist editors, radio programmers, and other industry gatekeepers that take years to build independently.

The Independent Toolkit

The tools available to independent artists in 2026 are substantially better than even five years ago.

Distributors offer playlist pitching, analytics, and promotional tools as standard. Social media provides direct-to-audience marketing for free. AI tools help with everything from mastering to metadata to content creation. Management companies increasingly work with independent artists rather than requiring label affiliation.

The infrastructure for independent careers is strong and getting stronger.

The Middle Path

There’s a growing middle ground that I think makes sense for many Australian artists: independent distribution with strategic partnerships.

A licensing deal (where the label promotes and distributes your music for a period, but you retain ownership of your masters) is often a better option than a traditional label deal. The terms are more balanced, the duration is shorter, and you maintain ownership.

Working with an independent marketing company or publicist for specific campaigns — rather than signing away revenue permanently — gives you access to professional promotion without the long-term cost.

Partnering with a sync agent rather than a publisher means your music gets pitched for placements while you retain ownership and control.

The Bottom Line

Before signing any deal, get independent legal advice from a music industry lawyer. Not a general lawyer — someone who understands music contracts specifically. In Australia, the Music Industry Legal Advice Service (MILAS) offers free or subsidised legal advice for musicians.

Run the numbers. Calculate what the deal actually means in terms of the money you’ll keep from various revenue streams. Compare it to what you’d keep as an independent artist, factoring in the cost of services you’d need to pay for yourself.

For most Australian artists in 2026, the independent path offers better economics, more creative control, and sufficient access to audiences. The major label deal is not dead, but it’s a worse bet than it’s been in decades. Make sure you’re signing for the right reasons, not just because someone offered.