How do record labels work?

Question by Rockstar: How do record labels work?
I’m currently writing fictional stories and my topic revolves around the music industry. How does the music industry work as a whole? And what is the relationship between an artist and the record label?
And is there much of a difference if an artist is signed to a sublabel rather than the actual label? Does the label still have full control over a sublabel?

What else would I need to know to write a decent fiction story on a new artist in the music industry?

Best answer:

Answer by superchick
Ask this in music. You will get a more informed answer.

Know better? Leave your own answer in the comments!