Check out this article.....
http://www.negativland.com/albini.html
The Problem With Music
-
facingwest
- Retroactive Member
- Posts: 651
- Joined: Wednesday Apr 09, 2003
- Location: Key West, FL
- Contact:
Where the $$$ supposedly goes if you pay for those downloaded tunes ...
How labels and artists divvy up your MP3 dollar
The cut the artists get for all their hard work hardly seems fair this way either.
How labels and artists divvy up your MP3 dollar
The cut the artists get for all their hard work hardly seems fair this way either.
-
facingwest
- Retroactive Member
- Posts: 651
- Joined: Wednesday Apr 09, 2003
- Location: Key West, FL
- Contact:
Sorry about that.. 
Heres that article
WHO GETS WHAT
The MP3 Economy
How labels and artists divvy up your MP3 dollar.
The going rate for downloading songs from online music services like Apple's (AAPL) iTunes Music Store, MusicNet, Pressplay, and Rhapsody is about $1 a pop. Yet the economics of recorded music sales haven't changed much since the vinyl era -- despite the fact that digital files cost very little to produce and distribute. So how much of your buck makes its way back to the artists? Not much, though it's clearly a better deal than they get from piracy.
The Site's Cut = 40%
The biggest chunk of your dollar goes to the online music provider. This explains why sites like Rhapsody can offer promotional discounts: When you buy a song for 49 cents, the site sacrifices its profit but the label still gets paid
The Label's Cut = 30%
The record company receives "performance royalties" that are paid to license an actual recording (not the written music). That explains why some performers, like alt-rocker Aimee Mann, run their own labels -- it allows them to keep a larger share of these royalties for themselves
The Middlemen's Cut = 10%
A small portion is reserved for various other intermediaries. Sites like Liquid Audio, MusicNet, and Rhapsody often sell their services through secondary distributors like Amazon and AOL, so they, too, get a cut.
The Publisher's Cut 8%
This sliver goes to the music publisher in the form of "mechanical royalties," the amount paid to license the written music. While other fees can vary from artist to artist, mechanical royalties are always a flat-fee transaction.
The Artist's Cut 12%
Twelve percent is average, but successful bands often hammer out better contracts. In many major-label contracts, charges for "packaging" and promotional copies are subtracted from the artist's cut, leaving the talent with a measly 8 percent. BMG, Universal, and Warner have announced plans to do away with such deductions for digital downloads.
Heres that article
WHO GETS WHAT
The MP3 Economy
How labels and artists divvy up your MP3 dollar.
The going rate for downloading songs from online music services like Apple's (AAPL) iTunes Music Store, MusicNet, Pressplay, and Rhapsody is about $1 a pop. Yet the economics of recorded music sales haven't changed much since the vinyl era -- despite the fact that digital files cost very little to produce and distribute. So how much of your buck makes its way back to the artists? Not much, though it's clearly a better deal than they get from piracy.
The Site's Cut = 40%
The biggest chunk of your dollar goes to the online music provider. This explains why sites like Rhapsody can offer promotional discounts: When you buy a song for 49 cents, the site sacrifices its profit but the label still gets paid
The Label's Cut = 30%
The record company receives "performance royalties" that are paid to license an actual recording (not the written music). That explains why some performers, like alt-rocker Aimee Mann, run their own labels -- it allows them to keep a larger share of these royalties for themselves
The Middlemen's Cut = 10%
A small portion is reserved for various other intermediaries. Sites like Liquid Audio, MusicNet, and Rhapsody often sell their services through secondary distributors like Amazon and AOL, so they, too, get a cut.
The Publisher's Cut 8%
This sliver goes to the music publisher in the form of "mechanical royalties," the amount paid to license the written music. While other fees can vary from artist to artist, mechanical royalties are always a flat-fee transaction.
The Artist's Cut 12%
Twelve percent is average, but successful bands often hammer out better contracts. In many major-label contracts, charges for "packaging" and promotional copies are subtracted from the artist's cut, leaving the talent with a measly 8 percent. BMG, Universal, and Warner have announced plans to do away with such deductions for digital downloads.
-
RobTheDrummer
- Diamond Member
- Posts: 5227
- Joined: Tuesday Dec 10, 2002
- Location: Tiptonia, Pa
-
facingwest
- Retroactive Member
- Posts: 651
- Joined: Wednesday Apr 09, 2003
- Location: Key West, FL
- Contact:
All the companies think image is more important than anything. The day I met Gene Simmons, I told him I wanted him to hear our CD as soon as it came out and he mentioned something about my age. I'm 28 years old for craps sake. heh I really wasn't asking him to help me with anything or any kind of record contract. I just wanted the inspiration hear the person he/they inspired. However, for any of those interested in sending a demo to his record company, visit Gene Simmons Records. Check out the picture of him and myself!! Click here