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Why did record companies market “race records” to African American audiences in the 1920s?

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Record companies marketed "race records" in the 1920s to capitalize on the significant, previously overlooked commercial demand for music by African American performers.1

The industry shift was triggered by the massive success of Mamie Smith’s 1920 recording of "Crazy Blues," which demonstrated to labels like OKeh Records that there was a lucrative market for blues, jazz, and gospel music within the Black community. By creating specific "race record" lines and advertising them in Black-owned newspapers, companies were able to reach this audience directly.1

This marketing strategy was further solidified by the efforts of Black entrepreneurs like Harry Pace, whose Black Swan label pressured white-owned companies to acknowledge the demand for Black artists and invest in dedicated catalogs. Ultimately, this commercial category facilitated the rise of legendary artists such as Bessie Smith and Blind Lemon Jefferson, with annual sales reaching five million copies during the 1920s.1