[DaneMcCloud]

Originally Posted by Reerun_KC

Back in the day when an band would release a song, the only way you could get the song is by purchasing a Cassette or whatever right? Most of them would cost around 8-9$ each....

If there were 2 million Cassettes sold. You would be looking at 16-19$ million in revenue - payment to the artists and production costs, etc....

In today's money 2 million would be around 26-27 million for that same artist and his cd.......

Now we can have 2 million people go out and download the hit song for .99$..............

Seems like a lot of revenue lost to me...

JFC, go back read the ****ing thread.

You couldn't be more ****ing clueless if you tried.

Originally Posted by DaneMcCloud

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.




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.