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This isn't entirely accurate cso i can't quite remember, but my DJ friend told me how the system works.
If you are a DJ with a residency, ANY residency, then you can join a record labels mailing list. The records are free.
When a new song is produced, the DJ's with higher profile residencies (Gatecrasher Cream, etc) get the first set of promo's/white labels. The lower your profile the later on you'll get the record. My fired who is 3rd in the pecking order gets records 24weeks before release.
When a DJ plays new tunes, they have to guage the crowds reaction to it, and rate it a few days after and send the results back to the record label.
As u can imagine, record labels doj't liek it when there recor disn't top of the list, and they actually DO pressurise you into altering your decision.
At the end of the day, according to how well a tune goes down, a release date for the public is set. The remaining promo's that weren't handed out to all DJ's gets sold to record shops, where thye are sold to the public (like HTFR, etc)
And thats about it.
They are called Promo's cos they are promotional items (!) and the name white label comes from the fact that as the tune hasn't been released yet, there are no remixes, and a record sleeve hasn't been made yet, or something.
Acetates are similar to Promo's but they are generally distributed by the artist themselves, as a test, before the tune is signed to a label.
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