The Heretic’s Comment:
According to Moses Avalon’s 1998 Book, Confessions of a Record
Producer, the proceeds of a then-$17 CD would typically be distributed
Retailer: $5 (29.4%),
Record label: $4.92 (28.9%),
Distributor: $2.40 (14.1%),
Giveaways: $1.80 (10.6%),
Duplication/recording: $1.10 (5.8%),
Artist royalty: 83 cents (4.9%),
Songwriter license: 60 cents (3.5%),
Producer royalty: 27 cents (1.6%),
Musicians union: 8 cents (0.4%).
Now mind you, the numbers used in our example are from years ago, but it is instructive to show you just how greedy and abusive the Major Labels have been both to recording artists/producers/songwriters as well as to the general consumer. The physical production cost of each CD might have cost the Major Label anywhere from 6 cents to 50 cents to manufacture, yet the Labels had the price jacked up in some cases as high as $19.98 for the retail price of the CD. Of this retail pricing, the combined money paid out to the recording artist, songwriter, producer and musician was less than $2.00 per CD sold (in our example, it was actually $1.74 per CD sold).
The saddest part about the above is that despite using numbers from over 10 years ago, nothing presently has changed in the artist’s favor in reference to those signed under major recording contracts. In fact, it is even worst now, because of all of the 360 arrangements that Major Labels force artists to eat in exchange for getting a deal. So the possibility of an artist making money through record royalties in 2011 remains almost non-existent despite the fact that in this year Major Record Labels and their partners will pocket millions upon millions of dollars from physical CD sales.
Sadly enough the numbers on the digital side are even worst than the physical side, but we will deal with that in a separate post.
You have to have the courage to speak to Power and refuse to bow down. That is the only way these slave deals will ever change. As long as we are fighting and competing against each other to see who will have the next opportunity to be offered the major label deal, 10 years from now…nothing will have changed. Your musical sons and daughters will be signing the same slave deal you were forced to sign. Even more sadder than that is the fact that you will own none of your music…it will be under the firm control and ownership of a Conglomerate that has long forgotten about you.
If you enjoy The Heretic™ and the information we provide please sign up as a subscriber today! Thank You!!!
Let us know your thoughts and comments.
The Heretic™ © 2011 Cross Live Media All RIGHTS RESERVED For the MAKE YOUR OWN MONEY FROM YOUR PROJECT Movement……..
Follow us on Twitter @attorneycross
Join our Facebook Fanpage: Search for Music Business Heretic
The Official Release of the “Before You Sign That” is coming soon. An indie artist inspired book Authored by The Heretic’s very own Leslie W. Cross Jr. and co-authored by platinum recording artist Paul Wall. More details are coming soon if you are interesting in pre-ordering the book. We are very excited about this Project!!!! We also have other projects in the works that we will be sharing with you soon!!!