A legal agreement (commonly called a "record deal") between a record label and a recording artist (or group), where the artist makes a record (or series of records) for the label to sell and promote. Artists under contract are normally only allowed to record for that label exclusively; guest appearances on other artists' records will carry a notice "By courtesy of (the name of the label)", and that label may receive a percentage of sales. A record label is a brand created by companies that specialize in manufacturing, distributing and promoting audio and video recordings, on various formats including compact discs, LPs, DVD-Audio, SACDs, and cassettes. ... A musician is a person who plays or composes music. ...

Labels typically own the copyright in the records their artists make, and also the master copies of those records. An exception is when a label makes a distribution deal with an artist; in this case, the artist, their manager, or another party may own the copyright (and masters), while the record is licensed exclusively to the label for a set period of time. Promotion is a key factor in the success of a record, and is largely the label's responsibility, as is proper distribution of records. For copyright issues in relation to Wikipedia itself, see Wikipedia:Copyrights. ... A master recording is an original recording, from which copies may be taken. ... A legal agreement between one party and another, to handle distribution of a product. ... How to obtain a amature radio licence differs from country to country. ... Promotion is one of the four aspects of marketing. ... Distribution is one of the four aspects of marketing. ...

When recordings go out of print, this typically happens because either the label has decided that continuing to sell (or distribute) the record will not be profitable, or the licensing agreement with the artist has expired. (Labels may also stop distribution as a punitive measure, if an artist fails to comply with their contract, or negotiations for a new one prove difficult.) Record labels can also become bankrupt like any business, and their masters and copyrights sold or traded as part of their assets. (Occasionally these are purchased by the artists themselves.) Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their creditors. ...

Recording artists signed to a failed label can find themselves in limbo, unable to record for anyone but a company that is out of business (and thus cannot sell or distribute their records), and with their existing works unavailable for sale. When one label "buys out" another (or a label is purchased by an outside party), any existing copyrights and contracts held (and masters, if owned by the label) normally go with the sale. This often benefits recording artists, but not always.

Distribution deals are often renewed, but occasionally the label and artist (or whoever owns the copyright) cannot come to terms for a renewal; the reason is usually because one side expects too much money, or too large a percentage of profits, to suit the other.