Many independent artists agree to allow independent distributors to distribute their music according to a distribution agreement between both parties. Major distribution deals also exist in which the label agrees to manufacture and distribute a release.
The New Formula for Success in the Music Business
The old method of promoting a new act in the music business was for a record company to invest at least $500,000 in studio time with a good producer, the cost of a good video, the advertising budget, and the cost of the first promotional road tour.