Meet The News Boss. Same As The Old Boss. Record Labels Find New Ways To Make Money From Music.
Much is written about a paradigm shift in the music industry and technology and the web empowering artists. All that is true, but when money is the motivator, as it always will be for larger and public companies, exploitation of artistic expression will always be just a signature away.
From Nashville’s MusicRow.com comes a one music lawyer’s litany of the new and ever creative ways that record labels are trying to control and thus monetize music and the artists that produce it in the age of Music Business 2.0.
With declining sales labels are seeking new sources of revenue including:
- Requiring artists to create new products (ringtones, wall paper) for the cell market.
- Taking control of the artist web site to sell merchandise and even advertising.
- Control of and ability to license album artwork.
- Requiring that artists pay a portion of touring and merchandise revenue to the label.
- Lower royalty rates for expanding digital delivery services like subscription.
Labels are also looking for ways to increase revenue from existing streams including:
- Increasing the percentage of record company expenditures that are recoupable from the artist.
- Reducing the percentage of income the artist receives from product or track licensing.
Read the full Music Row article here.
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The “new and creative ways” the majors are attempting to foist on unsuspecting new artists ignores a key fact:
No artist needs to accept these ways. Consider carefully what a major label is really offering before accepting the deal that is offered.
I would find it difficult to counsel any group to give up control of its web site, or a penny’s worth of touring or merchandising income. Phony accounting methods for online sales are another desperate, RICO-style attempt to obfuscate royalty statements and keep artists unrecouped. At least negotiate an outright, if reduced, percentage of gross, and not settle for the murkiness of fictitious packaging, free goods and returns.
Is having a CD released by a major label worth what you are being asked to give up in exchange?
The young recording artist must consider well how much control and revenue they really want to give up in exchange for their “shot” – especially when that “shot” might be just as available to them on their own, or with an Indy.
More and more often, DIY is the way to go. The labels continue to shoot themselves in the foot, and are working their way up to more vital parts of their anatomy.
There isn’t good information/guide to artist anywhere online.
I mean, a page, with title, sub chapter, easy to read. Just to avoid obvious pitfall/basic advice from insider.
Most writings are quickie writings, temporary blogs entry, or just a hook to buy “books/service/whatever other deal”
considering it’s an easy “google” attraction. I am surprise nobody has done it yet. (I would, If I know what’s going on)