Once upon a time, it was all about the major music label deal. But today, as every type of business is taking a loss, some business-savvy artists are doing things their own way with independent labels. Here are some of rap’s richest who continue to thrive in a slow economy with their own label imprints.
Aftermath
The legendary rapper-producer is also one of hip-hop’s savviest–unlike many who sell away the rights to their songs, Dr. Dre hangs on to most of his. and still collects royalties on multiplatinum albums like the 1992 classic The Chronic, which sold nearly 10 million copies worldwide. He also rakes in cash from his headphones line Beats by Dre, a partnership with Interscope Records. He served as executive producer for Eminem’s “Recovery,” which sold over 1 million U.S. copies in its first two weeks; solo album Detox is slated for release this fall.
It’s been a good year for Aftermath Entertainment. The Dr. Dre founded label is enjoying the fruits of Eminem’s latest release with the Detroit rapper earning 10 Grammy Award nominations for Recovery, capping a comeback year for the once-troubled rap star.
Aftermath operates as a subsidiary of, and is distributed through, Universal Music Group’s Interscope Records. Upon his departure from Death Row Records in June 1996, Dr. Dre quickly launched Aftermath Entertainment through Interscope Records (which at the time was Death Row’s distributing label). It was founded as a “boutique label” that prides itself on “quality over quantity”, focusing on small numbers of high-profile releases.
Cash Money Records
Cash Money Records is a record label founded by brothers Bryan “Birdman” Williams and Ronald “Slim” Williams. It operates as a subsidiary of Universal Music Group, and is distributed by Universal Motown Republic Group. For its first few years, Cash Money (known as Y.B.M.G) released a few local by artists, selling hundreds of thousands of albums without ever releasing a music video or having a Billboard hit. That all changed when, in 1995, the label signed young rappers B.G. , Lil Wayne and Juvenile. Cash Money’s big break came in 1997 when the label caught the attention of Universal Records executives. In 1998, Cash Money signed a $30 million pressing and distribution contract with Universal, entitling the label to 85% of its royalties, 50% of its publishing revenues and ownership of all masters. That year, Juvenile’s album 400 Degreez was certified 4X Platinum and carved Cash Money’s place as a powerful label in the national hip-hop scene.
Between 2001 and 2003, the label sold 7 million albums. In 2007, former Hot Boy member Lil Wayne was named president of Cash Money Records and CEO of Young Money Entertainment Aka Y.B.M.G, giving the rapper full creative control over all releases under the two labels. Later that year, however, Lil Wayne stepped down as president to focus on his career, especially Tha Carter III. In 2008, Lil Wayne re-signed with Cash Money, ensuring that his next few albums will be produced by the label. On August 5, 2010 production group Cool & Dre signed with Cash Money Records. They are the first in house producers since Mannie Fresh. In August 19, 2010, Birdman signed DJ Khaled to the label, being the second producer in the label and the first Disc-Jockey ever.
Disturbing Tha Peace
DTP is a hip hop record label and management company founded by Christopher “Ludacris” Bridges, his manager Chaka Zulu and Jeff Dixon. It is a subsidiary of Universal Music Group, and is distributed by Island Def Jam Music Group. Ludacris released his debut album Incognegro which sold 50,000 copies out of the trunk of his car. Ludacris and his partners founded Disturbing tha Peace in 2000 to serve as an outlet for musicians hailing from his native Atlanta. As fate would have it, Luda caught his big break that year when he signed to Def Jam’s newly established Southern rap subsidiary, Def Jam South, and became the label’s flagship Dirty South artist. In late 2000, Def Jam repackaged his debut album Incognegro as Back for the First Time. Though there have been a few artists on the DTP roster including Shawnna and Bobby V, Ludacris remains the mainstay of the label. In 2010, he released his seventh album, Battle of the Sexes, which debuted at #1 on the Billboard 200.
Grand Hustle
Grand Hustle Records is an Atlanta-based record label formed in 2003 by Clifford “T.I.” Harris and Jason Geter. Today it operates as a subsidiary of Warner Music Group, and is distributed by Atlantic Records. Through the label, he began to make mixtapes and was featured on Bone Crusher’s hit single “Never Scared.” Once heard on the single, he had resurfaced on the mainstream, and was signed to Atlantic Records. In August of 2003, T.I. released his second album Trap Muzik which debuted at number four on the charts and sold more than 109,000 copies in its first week. In 2007, T.I. appeared on Forbes’ “Hip Hop Cash Kings” list with $16 million in earnings. In December 2010, it was announced that Grand Hustle artist B.o.B was nominated for three Grammys, including Record of the Year, on December 1, 2010 for the 53rd Grammy Awards. T.I. recently returned to an Arkansas state penitentiary to serve 11 months for parole violation.
Roc-A-Fella
Roc-A-Fella Records is an American record label founded by Shawn “Jay-Z” Carter, Damon Dash, and Kareem “Biggs” Burke. Founded in 1996, Roc-A-Fella Records began as an independent outlet for Jay-Z’s first album. After years of successful releases from Jay-Z himself, M.O.P., N.O.R.E., Beanie Sigel, Freeway, Amil, and Memphis Bleek, among others, the infamous Roc-A-Fella ‘split’ occurred when it was revealed that Carter, Dash and Burke had sold their 50% interest in Roc-A-Fella to Def Jam, making the label full owners. As President, Carter retained control of the Roc and his masters, ousting his two former partners. On May 21, 2009, Jay-Z opted out of his contract from Def Jam for an unprecedented $5,000,000 and started his deal with Live Nation. Although the founders have departed, Kanye West’s albums are still put out through the label.
Star Trak Entertainment
Star Trak Entertainment is a record label, founded by record producers Chad Hugo and Pharrell Williams in 2001. Today it operates as a subsidiary of Universal Music Group, and is distributed by Interscope Records. The label was partially funded by Arista Records in a joint-venture.
Williams signed longtime friends, Clipse, a duo of brothers Malice and Pusha-T who released their debut album, Lord Willin’, in 2002. After the success of the album, the label would go on to sign Kelis, Vanessa Marquez, and Fam-Lay among others. In 2004, Star Track signed Snoop Dogg’s Doggystyle Records and released Snoop’s R&G : The Masterpiece, a platinum-seller. Star Trak moved to Interscope ownership and lost Snoop, but gained a new signee named Robin Thicke. In 2010, Williams was among the composers on the soundtrack for the animated hit Despicable Me, which featured the Neptunes and Robin Thicke.
