What disadvantage do independent record labels face compared to major ones?

Independent record labels often face challenges in terms of resources and organizational capabilities compared to major labels. The correct answer highlights that independent labels may have a less organized structure, which can manifest in various ways, including limited management resources or less formalized processes for artist development, marketing, and distribution.

This disorganization can hinder their ability to compete effectively with major labels, which usually have extensive systems in place to streamline operations, manage a larger roster of artists, and coordinate promotional efforts. The impact of this less organized structure can result in slower response times to market changes, difficulties in scaling operations, and a reduced ability to provide comprehensive support for their artists.

In contrast, major labels typically have more resources at their disposal, allowing for greater financial backing, structured operational frameworks, and broader industry connections. This allows major labels to capitalize on synergies that can ultimately benefit the artists they represent.