Quote:
Originally Posted by chiefzilla1501
I don't know if times have changed, but while I don't support piracy or illegal download (I buy all my shit on iTunes/Amazon, no matter how expensive), here's one thing that always bothered me. It would be one thing if I felt like I was stealing from the musicians, but in most cases, the musicians don't see a dime of your money anyway. Dane, correct me if I'm wrong, because you know the industry.
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You're wrong.
This is a very complex conversation but essentially what happens (or used to happen, before the massive onset of piracy and the changing of the way record labels and publishers do business) is as follows:
1. Band signs record deal. Generally one record with an option for two more. The third record is dependent on the sales of the second record.
2. Band receives a "Recording Fund". This fund is generally no less than $500,000 dollars. From this fund, the band and record label hire a producer who in turns hires an engineer(s) and pays for studio time (likely about $2,000 per day in a "real" studio).
3. Record is completed and the band makes a video, generally about $250,000.00.
4. Band hits the road. Record company pays approximately $30k per month as tour support for the band.
5. Record label spends an additional $100-200k on promotions (Radio & TV ads, giveaways, etc.).
By the time the band's first record is complete, the video is shot and their out promoting, the band is in the hole to the record company by anywhere from $500k-750k before they even sell ONE RECORD. Once the band begins (hopefully) to sell records, they must pay the record company back for all of these advances (it's called "recoupment") before they see any earnings.
If the band flops, the band owes nothing contractually and the label takes a financial hit ("write off"). If the band meets or exceeds their recoupable amount, they then share in the profits, anywhere from 14-21% of the retail pricing.
Quote:
Originally Posted by chiefzilla1501
But the impression I get is that if a musician isn't going to make money, they'll want to be heard. A lot of bands used to encourage bootlegging because they know that viral marketing is a hell of a lot more effective than forcing consumers to pay $1 per song just to listen to a track.
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Bootlegging and "being heard" aren't the same. The only way to get on radio is by promoters, whether it be the record labels or "independent" promoters.
The internet is great and all, but last year alone only
2% of ALL albums released in the United States sold more than
5,000 copies.
Do the math.