Conquering Challenges: A Professor’s Insight into College-Run Record Labels

1.     Fear of Risk: Breaking the Institutional Chains

Educational institutions often shy away from entrepreneurial ventures, terrified of the risks involved. Teaching music business through traditional lectures and case studies is worlds apart from letting students run record labels, sign artists, market recordings, negotiate distribution deals, and manage royalty accounting. The initial reaction from risk-averse colleges? A resounding "no way!" Fear of lawsuits looms large, and the music industry’s reputation for risk and conflict only amplifies this trepidation.

However, risk can be managed. At Disrupcion Records, we had our college lawyer draft a straightforward record license agreement. This template has proven highly effective, ensuring clear understanding between the label and the artist regarding their rights and obligations. Each year, a new student team takes the reins, filling key executive roles with dedication and seriousness. One crucial role is the “Head of Legal and Finance,” tasked with ensuring legal compliance and minimizing risks. This approach has kept us safe and effective, demonstrating that with the right measures, fear of risk can be conquered.

2.     Avoiding PR Nightmares: Keeping Artists Happy

Worried about artists publicly bashing your label? The potential PR fallout can indeed damage an institution’s reputation. At Disrupcion Records, we preempt such issues by offering artist-friendly deals. Our rolling-term license agreements allow artists to terminate their contracts anytime after six months from the first release date. This not only ensures artists remain happy and well-served but also teaches students the importance of adding value. This strategy has worked wonders for us, with many artists choosing to stay with us long after they could have walked away.

3.     Stability Amidst Student Turnover

How can a label function when students graduate and leave? This is a particular challenge at Berklee Valencia, where the Global Entertainment and Music Business (GEMB) master’s program is just one year long. We tackle this with robust hand-over and transition processes. Each year, outgoing students ensure a smooth transition for the new team and maintain a skeletal staff over the summer to meet artists’ needs. I oversee this continuity, and It has been assisted by the proud willingness of previous students to support the ongoing success of the label.

4.     The Funding Dilemma: Securing Financial Support

Funding student-run labels is a constant struggle. At Berklee, we've embedded Disrupcion Records into campus life through branded events, demo feedback sessions, songwriter camps, and more. This integration has helped us secure funding by demonstrating our value to the college community. Hard data showing that Disrupcion Records attracts applicants to the GEMB program has also been persuasive.

Overall, it would be fair to say that our label budgets are tight.   This itself however presents students with a learning opportunity.  Most independent record labels face difficult financial environments.  Students get to learn how records are often made on a “beg, steal and borrow” basis, and they become highly proficient at low cost / high creativity asset creation.  

Over the longer term, our hope is that CRIA will be a source of sponsorship and industry support for these heroic student run labels.

5.     Competing with Artist Self-Releases

Why would an artist choose a small label over self-releasing? Surprisingly, we haven't found this to be a significant issue. Artists often appreciate the ethical commitment, youthful energy, and innovative marketing strategies our students offer. Many of the artists we've signed were at early stages in their careers, lacking any industry support. Disrupcion Records has provided them with the support and confidence they needed, proving that the value of a dedicated label—student-run or otherwise—remains strong.

Looking Forward: The Collegiate Record Industry Association (CRIA)

Our 10th anniversary inspired us to share our journey and collaborate with other college-run labels. This led to the founding of the Collegiate Record Industry Association (CRIA), aiming to help solve some of the problems and challenges set out above. It is hoped that established labels and industry associations will support CRIA in this aim.  By improving relationships with artists, fostering innovation, and competing with self-releases, these labels are nurturing the next generation of music industry leaders.