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ARTIST EMPOWERMENT COALITION + Pictures Pictures: Artist Empowerment Coalition Luncheon Honoring the Nominees of the 45 Annual Grammy Awards.
The ARTIST EMPOWERMENT COALITION (“AEC”) is a not-for-profit coalition which was formed to (I.) utilize the gift and creation of music, art and culture to make the world a better place and (II.) promote changes and reform in the relationships between artists and the companies that exploit, market and distribute their creative work. The AEC is an advocate for the arts, organizing common efforts to increase funding and involve industry, community, educational and cultural institutions and policymakers in the quest for an improved entertainment model and creative offering. The AEC was initiated and inspired through the efforts of artists such as Stevie Wonder, Prince, DMX, Doug E. Fresh, Chaka Khan, Roberta Flack, Najee and the law firm of L. Londell McMillan, P.C. The AEC works to improve the quality of life for artists, performers, musicians, songwriters and others in the business of entertainment and for all people by preserving artistic freedoms and empowerment within our communities. PART I : MUSIC ART AND CULTURE Utilizing the gift and creation of music, art and culture to make the world a better place. 1. ARTISTIC EMPOWERMENT AND PRESERVATION: Music, art and culture are among America’s most precious and powerful natural resources. Art transports our values and our heritage from generation to generation. From the early gospel roots, through today’s popular music, human creativity has helped inspire our democracy to honor and preserve America’s multi-cultural artistic heritage as well as support new creative ideas. The AEC is dedicated and devoted to preserving the noble legacy and artistic expression our communities in America. 2. EDUCATION MISSION: The foundation of education is a creative mind. Supporting the climate and conditions for creative talent helps cultivate the seeds of scholarship and ingenuity. Art should serve as an educational tool, as it is one in our society where ideas can flow freely across barriers. However, too much of today’s commercial music and “so-called” art forms denigrate the cultural and educational brilliance of the American people. Our children deserve better exposure to broader aspects of the arts and humanities. The AEC will support these educational goals and objectives. 3. COMMUNITY REVITALIZATION: The AEC views the arts as central to community life and national identity. The AEC is committed to providing opportunities for inner city and rural populations to enjoy the limitless bounds of music, arts and culture. In addition to anchoring communities, growing the economy, and increasing jobs, the arts give communities a profound sense of identity, purpose, pride, lifestyle and provide a soundtrack for a certain quality of life. The AEC seeks to improve the quality of life in our communities through creating performance opportunities as well as expanding and improving the quality of music and arts exploited to our children. Investing in the arts is an investment in people. 4. ACCESS: The AEC has taken seriously the view that music art and culture should benefit and serve the community. Recognizing the need for the increased access to the arts in the form of participation, experience and interaction with artists and creative contributors, the AEC will work with the artists to fulfill their responsibility and provide opportunities for them to share their gifts and talents with the community directly, introducing and reinvesting creative leadership and membership to future generations. 5. PARTNERSHIPS: The AEC will engage in and seek partnerships with federal agencies, local and state governments, and with supportive industries on a number of projects that will help educate, preserve and promote America's rich cultural traditions, including our unique artistic contributions to the world. Such partnerships shall increase the resources allocated to our communities on a broader artistic level. Businesses can contribute more than money; many corporations own important parts of America's cultural heritage, and many entertainment companies develop new talent and new works of art. The AEC will work identify those areas where every segment of the arts community can work together. PART II: INDUSTRY REFORM Promote changes and reform in the relationships between artists and the companies that exploit, market and distribute their creative work. 1. Ownership of Copyrights in Masters and Music Publishing – The AEC will push for reform in the contract practices of record companies and music publishers, in order to return ownership of the copyrights – the essence of an Artist’s creative output – to the artist and songwriter. 2. Limitation on Long-Term Recording and Publishing Agreements – The standard recording and publishing contracts (which can tie the artist/songwriter to a potential term over 10 years) is a form of “indentured servitude.” The AEC will push for legislation limiting the duration of these contracts, as well as changes in contractual practices. Ultimately, the AEC will work to establish a kind of “free agency” in the music industry – similar to what has already been achieved in the motion picture industry and in professional sports. 3. Repeal of Compulsory Licensing Provision in U.S. Copyright Act – The U.S. Copyright Act contains an unfair and outdated “compulsory licensing” provision that compels songwriters and publishers to license any song to anyone who wants to record it - so long as the song has already been released on at least one record. The clause also puts a ceiling on the royalty a songwriter can charge for using a song on a record (the “compulsory rate”). The AEC will lobby to repeal the compulsory licensing provision in the Copyright Act, and return control of song copyrights to songwriters and publishers. The AEC will also push the record companies to eliminate the “controlled composition” clause. 4. Pension and Health Benefits – Artists have historically had to fend for themselves when it comes to providing retirement plans and health insurance for their families. The AEC will work to establish meaningful pension and health benefits for artists and their families. 5. Media Concentration – The rampant mega-mergers and the resulting concentration of power in the hands of an ever-shrinking number of media companies makes it even harder for artists to find outlets to express their creativity, to control their work and to be compensated fairly. Moreover, radio and television are rigidly “programmed” on a national basis, without regard to regional diversity and individual tastes. The result is lack of choice for both artists and consumers. The AEC will address the problems created by this ever-increasing concentration of ownership and power in multi-national media companies. 6. Piracy – Artists live to create. They also create to earn a living – and this requires that artist be paid for what they do. Unfortunately, with the increased use of CD burners and file sharing in the U.S., and weak or non-existent copyright laws in many countries around the world, music piracy is a major problem. The AEC will work to create technological and legal solutions to curb music piracy, and protect the rights of artists to be compensated by those who enjoy their work. 7. Union Activity – Artists and songwriters must empower and actively participate in the music unions (AFM and AFTRA) to provide appropriate “checks and balances” to the multi-national media companies. Likewise, these unions must become more pro-active in defense of artist rights. 8. Industry Responsibility and Accountability – The music industry is suffering from creative business mismanagement. The AEC seeks to foster a sense of responsibility and accountability for the often violent and anti-social messages contained within the music marketed to the public, and to encourage a more charitable and responsible culture by and among entertainment companies, artists and consumers. 9. Diversity and Equal Opportunity – The AEC demands that the entertainment companies act decisively to hire, develop, nurture and retain executives and other decision-makers from diverse backgrounds (as to race, gender and age), reflective of the diverse consumer audience to whom they market their products. This is not simply a moral imperative, but a goal, which will strengthen the industry and promote greater success for artists. 10. Artistic Integrity – It is important that, “We the people..”, reclaim our music and right to a broader spectrum of creative choices. The music today suffers from the lack of artist development and skill. It is inherent in the creative process that it takes time for an artist to develop his or her identity, style and voice. The AEC will encourage companies to return to the practice of nurturing artist careers for the long haul, and recognizing the important artistic and economic contributions to be made by all artists. http://www.artistsempower...ition.org/ http://www.gospelcity.com...lition.php P.S Inspired by Serpan99 Thread: http://www.prince.org/msg...&tid=38193 Credit where credit is due. . [This message was edited Fri Feb 28 12:39:18 PST 2003 by katt] | |
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--
Thanks for posting this Katt. I hope some positive debate will come from it. I am going to try and bring in my two cents concerning the "industry reform". But first I would like to point one thing out... Never in the history of the recording industry have recording artists truly collectively organised themselves in order to strenghten their position against the powerfull companies looking to exploit their work to the fullest extense possible. This situation has caused the artist community as a collective much harm in many ways. It would be so easy to put ALL the blame of that sad state of the music industry in the lap of the companies, but I am of the strong opinon that artists themselves have also contributed themselves to the injustices over the decades. For me that is a fact, but I don't see it acknowledged by the AEC. So I fully support this movement, but I disagree with how exactly the causes are being adressed and, in connection to that, also on some of the means of how to reach their goals, mainly when it concerns the "industry reform". PART II: INDUSTRY REFORM
This is generally put what goals the AEC is trying to achieve and to be clear I am a definite supporter of it. So don't look at me as a "naysayer" or otherwise a "hairsplitter" instantly, but... IMO there is one keyword in this sentence that is lacking true power and that is "promote". The ultimate goal of the AEC is therefore not spelled out as to actually ACHIEVE change and reform, but merely to "promote" it.
Promote changes and reform in the relationships between artists and the companies that exploit, market and distribute their creative work. IMO an Artist EMPOWERMENT coalition should say and DO more than just promote reform, it should do anything it can to collectively ENFORCE it also. That is necessary in the current 'sick' state of the industry. And that is possible when you are united in purpose in a collective. Then you have the POWER to actually change. 1. Ownership of Copyrights in Masters and Music Publishing – The AEC will push for reform in the contract practices of record companies and music publishers, in order to return ownership of the copyrights – the essence of an Artist’s creative output – to the artist and songwriter. Thsi si a truly great goal. However... would recordcompanies and music publishers jump up and support this goal?... NO WAY. They want to keep the system just as it is and make it give even more control and money for them. Here the AEC DOES say "push", whcih is stronger than "promote" for reform, but HOW? That is not being said.
How to actually achieve reform when the companies oppose it? Collective enforcement of new minimum standard contract practices. That means artists need to be prepared to say no to a deal that doesn't given them ownership, even if they get paid in full for it. And that also means that artists must be prepared to collectively threaten and to actually strike and stop their labor, when the companies are not fullfulling their demands, just like the movie actors did. 2. Limitation on Long-Term Recording and Publishing Agreements – The standard recording and publishing contracts (which can tie the artist/songwriter to a potential term over 10 years) is a form of “indentured servitude.” The AEC will push for legislation limiting the duration of these contracts, as well as changes in contractual practices. Ultimately, the AEC will work to establish a kind of “free agency” in the music industry – similar to what has already been achieved in the motion picture industry and in professional sports. Also a great goal, which should have been reached years ago. However, why is that not a single artist has actually had the guts to go to court and let the laws and recording contracts making this possible declare unreasonable and unconsciable? Courtney Love had the guts to start a lawsuit, but not to push through and she settled. So she created no legal precedent and NOTHING changes. I am also sure the courts would be able to solev this "indentured servitude" much quicker than the legislator who, lobbyed by the RIAA, was responsible for these kind of rules in the first place. So why isn't the AEC sueing already? 3. Repeal of Compulsory Licensing Provision in U.S. Copyright Act – The U.S. Copyright Act contains an unfair and outdated “compulsory licensing” provision that compels songwriters and publishers to license any song to anyone who wants to record it - so long as the song has already been released on at least one record. The clause also puts a ceiling on the royalty a songwriter can charge for using a song on a record (the “compulsory rate”). The AEC will lobby to repeal the compulsory licensing provision in the Copyright Act, and return control of song copyrights to songwriters and publishers. The AEC will also push the record companies to eliminate the “controlled composition” clause. I can't do nothing but support this argument, but I am afraid that it will be extremely difficult to make this change any time soon. Many other countries in the world know simmilar rules, albeit sometimes more favorable to artists. I would try to also fervently lobby for the recognition of moral rights of recording artists and composers. 4. Pension and Health Benefits – Artists have historically had to fend for themselves when it comes to providing retirement plans and health insurance for their families. The AEC will work to establish meaningful pension and health benefits for artists and their families. I am looking forward to the day I read the news that all artists have health insurance and pension plans covered. 5. Media Concentration – The rampant mega-mergers and the resulting concentration of power in the hands of an ever-shrinking number of media companies makes it even harder for artists to find outlets to express their creativity, to control their work and to be compensated fairly. Moreover, radio and television are rigidly “programmed” on a national basis, without regard to regional diversity and individual tastes. The result is lack of choice for both artists and consumers. The AEC will address the problems created by this ever-increasing concentration of ownership and power in multi-national media companies. Yes, I agree again, and I think they will collapse some day anyhow. But new technology allows the artists to go without the media companies. 6. Piracy – Artists live to create. They also create to earn a living – and this requires that artist be paid for what they do. Unfortunately, with the increased use of CD burners and file sharing in the U.S., and weak or non-existent copyright laws in many countries around the world, music piracy is a major problem. The AEC will work to create technological and legal solutions to curb music piracy, and protect the rights of artists to be compensated by those who enjoy their work. Define "piracy". Since they don't that, but do point to the use of "cd-burners" and "file-sharing" they obviously do see their own fans and customers as "pirates". And therefore don't acknowledge that fighting your customers is not going to help you one bit in getting more money for your work. letting the computer networks have their free netweork effect will and so will getting a fair share of the royalties, instead of letting the system of "buy-outs" exist. Also... why don't I hear anything about the absurd prices of cd's all over the world? Therefore I am sure that with a policy like this towards "piracy", the AEC will make the same mistakes as the media companies and will eventually lose. I would urge them to reconsider their stance and acknowledge the music lover as something more than a pirate or a thief. 7. Union Activity – Artists and songwriters must empower and actively participate in the music unions (AFM and AFTRA) to provide appropriate “checks and balances” to the multi-national media companies. Likewise, these unions must become more pro-active in defense of artist rights.[/quote] If I would be the AEC, I would try and join with the other "Unions"... numbers make even more strnegth. In any case... organise and enforce collectively. -- You are not my "friend" because you threaten my security. | |
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anybody there NOT a has-been? | |
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AaronUnlimited said: anybody there NOT a has-been?
It usually takes a fall from popularity to see what they really have in front of them, and what they've given up along the way. When you're flying high most people don't really pay attention to what's being lost in the process. "That...magic, the start of something revolutionary-the Minneapolis Sound, we should cherish it and not punish prince for not being able to replicate it."-Dreamshaman32 | |
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Abrazo said: --
Thanks for posting this Katt. I hope some positive debate will come from it. I am going to try and bring in my two cents concerning the "industry reform". But first I would like to point one thing out... Never in the history of the recording industry have recording artists truly collectively organised themselves in order to strenghten their position against the powerfull companies looking to exploit their work to the fullest extense possible. This situation has caused the artist community as a collective much harm in many ways. It would be so easy to put ALL the blame of that sad state of the music industry in the lap of the companies, but I am of the strong opinon that artists themselves have also contributed themselves to the injustices over the decades. For me that is a fact, but I don't see it acknowledged by the AEC. So I fully support this movement, but I disagree with how exactly the causes are being adressed and, in connection to that, also on some of the means of how to reach their goals, mainly when it concerns the "industry reform". PART II: INDUSTRY REFORM
This is generally put what goals the AEC is trying to achieve and to be clear I am a definite supporter of it. So don't look at me as a "naysayer" or otherwise a "hairsplitter" instantly, but... IMO there is one keyword in this sentence that is lacking true power and that is "promote". The ultimate goal of the AEC is therefore not spelled out as to actually ACHIEVE change and reform, but merely to "promote" it.
Promote changes and reform in the relationships between artists and the companies that exploit, market and distribute their creative work. IMO an Artist EMPOWERMENT coalition should say and DO more than just promote reform, it should do anything it can to collectively ENFORCE it also. That is necessary in the current 'sick' state of the industry. And that is possible when you are united in purpose in a collective. Then you have the POWER to actually change. 1. Ownership of Copyrights in Masters and Music Publishing – The AEC will push for reform in the contract practices of record companies and music publishers, in order to return ownership of the copyrights – the essence of an Artist’s creative output – to the artist and songwriter. Thsi si a truly great goal. However... would recordcompanies and music publishers jump up and support this goal?... NO WAY. They want to keep the system just as it is and make it give even more control and money for them. Here the AEC DOES say "push", whcih is stronger than "promote" for reform, but HOW? That is not being said.
How to actually achieve reform when the companies oppose it? Collective enforcement of new minimum standard contract practices. That means artists need to be prepared to say no to a deal that doesn't given them ownership, even if they get paid in full for it. And that also means that artists must be prepared to collectively threaten and to actually strike and stop their labor, when the companies are not fullfulling their demands, just like the movie actors did. 2. Limitation on Long-Term Recording and Publishing Agreements – The standard recording and publishing contracts (which can tie the artist/songwriter to a potential term over 10 years) is a form of “indentured servitude.” The AEC will push for legislation limiting the duration of these contracts, as well as changes in contractual practices. Ultimately, the AEC will work to establish a kind of “free agency” in the music industry – similar to what has already been achieved in the motion picture industry and in professional sports. Also a great goal, which should have been reached years ago. However, why is that not a single artist has actually had the guts to go to court and let the laws and recording contracts making this possible declare unreasonable and unconsciable? Courtney Love had the guts to start a lawsuit, but not to push through and she settled. So she created no legal precedent and NOTHING changes. I am also sure the courts would be able to solev this "indentured servitude" much quicker than the legislator who, lobbyed by the RIAA, was responsible for these kind of rules in the first place. So why isn't the AEC sueing already? 3. Repeal of Compulsory Licensing Provision in U.S. Copyright Act – The U.S. Copyright Act contains an unfair and outdated “compulsory licensing” provision that compels songwriters and publishers to license any song to anyone who wants to record it - so long as the song has already been released on at least one record. The clause also puts a ceiling on the royalty a songwriter can charge for using a song on a record (the “compulsory rate”). The AEC will lobby to repeal the compulsory licensing provision in the Copyright Act, and return control of song copyrights to songwriters and publishers. The AEC will also push the record companies to eliminate the “controlled composition” clause. I can't do nothing but support this argument, but I am afraid that it will be extremely difficult to make this change any time soon. Many other countries in the world know simmilar rules, albeit sometimes more favorable to artists. I would try to also fervently lobby for the recognition of moral rights of recording artists and composers. 4. Pension and Health Benefits – Artists have historically had to fend for themselves when it comes to providing retirement plans and health insurance for their families. The AEC will work to establish meaningful pension and health benefits for artists and their families. I am looking forward to the day I read the news that all artists have health insurance and pension plans covered. 5. Media Concentration – The rampant mega-mergers and the resulting concentration of power in the hands of an ever-shrinking number of media companies makes it even harder for artists to find outlets to express their creativity, to control their work and to be compensated fairly. Moreover, radio and television are rigidly “programmed” on a national basis, without regard to regional diversity and individual tastes. The result is lack of choice for both artists and consumers. The AEC will address the problems created by this ever-increasing concentration of ownership and power in multi-national media companies. Yes, I agree again, and I think they will collapse some day anyhow. But new technology allows the artists to go without the media companies. 6. Piracy – Artists live to create. They also create to earn a living – and this requires that artist be paid for what they do. Unfortunately, with the increased use of CD burners and file sharing in the U.S., and weak or non-existent copyright laws in many countries around the world, music piracy is a major problem. The AEC will work to create technological and legal solutions to curb music piracy, and protect the rights of artists to be compensated by those who enjoy their work. Define "piracy". Since they don't that, but do point to the use of "cd-burners" and "file-sharing" they obviously do see their own fans and customers as "pirates". And therefore don't acknowledge that fighting your customers is not going to help you one bit in getting more money for your work. letting the computer networks have their free netweork effect will and so will getting a fair share of the royalties, instead of letting the system of "buy-outs" exist. Also... why don't I hear anything about the absurd prices of cd's all over the world? Therefore I am sure that with a policy like this towards "piracy", the AEC will make the same mistakes as the media companies and will eventually lose. I would urge them to reconsider their stance and acknowledge the music lover as something more than a pirate or a thief. 7. Union Activity – Artists and songwriters must empower and actively participate in the music unions (AFM and AFTRA) to provide appropriate “checks and balances” to the multi-national media companies. Likewise, these unions must become more pro-active in defense of artist rights. If I would be the AEC, I would try and join with the other "Unions"... numbers make even more strnegth. In any case... organise and enforce collectively. --[/quote] I may have to re-read this, but upon initial skimming I could pretty much get with what you're saying here (now that you've gotten over the fact that they had lunch at the Hilton Every thing begins in small steps though... the AEC isn't the only entity taking shape to deal with these issues, and I'm almost positive they will combine efforts in the future. In the meantime, the fact that these impulses are springing up from a diversity of sectors in the industry bodes well in terms of it being on the minds of many. "That...magic, the start of something revolutionary-the Minneapolis Sound, we should cherish it and not punish prince for not being able to replicate it."-Dreamshaman32 | |
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NuPwrSoul said: AaronUnlimited said: anybody there NOT a has-been?
It usually takes a fall from popularity to see what they really have in front of them, and what they've given up along the way. When you're flying high most people don't really pay attention to what's being lost in the process. On the other hand, once you've spent all your money on drugs, women, and all kinds of gaudy rock-star crap, you suddenly think life isn't fair and that you deserve a second chance since you blew the first one. | |
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AaronUnlimited said: NuPwrSoul said: AaronUnlimited said: anybody there NOT a has-been?
It usually takes a fall from popularity to see what they really have in front of them, and what they've given up along the way. When you're flying high most people don't really pay attention to what's being lost in the process. On the other hand, once you've spent all your money on drugs, women, and all kinds of gaudy rock-star crap, you suddenly think life isn't fair and that you deserve a second chance since you blew the first one. Possibly, but I doubt that's the case for everyone. It goes more like this: A music industry case study New York Daily News Wednesday, February 19th, 2003 http://www.nydailynews.co...7008c.html A look at a mythical rock band's earnings, with actual figures compiled from industry sources: New York City's hottest new band is Grunthead, a four-piece hard rock group from Maspeth. Because they've got buzz, the band gets a 15% royalty rate, a few points above the usual amount for a new artist. Its debut, "Gruntastic," goes gold – only 128 of more than 30,000 records reached that level in 2002. The Gold Record Gross: 500,000 albums sell at $16.98 = $8,490,000 The Grunts' royalty is 15% of retail. That's $1,273,500. But the Contract calls for "packaging deductions" of 25%, so the gross drops to $6,367,500. Then there's promotional albums and giveaways the labels give to wholesalers, retailers, radio and the press. That's a "free goods" charge of 15%, so the gross drops another to $5,094,000. So, the band's royalty is actually: $764,100. The record company keeps the packaging and "free goods" funds. After collecting a $9.99 wholesale price, it also reaps an additional $829,900. The $3,500,000 balance goes to retailers, assuming they sell the record for list price. Because the band was hot, they got an advance from the record company of $300,000. They spent $200,000 of that recording the album, which included a $50,000 advance to the producer. They pocketed the remaining $100,000. Additionally, the label spent $100,000 making the band's first video, which got them played on MTV2. The band owes all of this money back to the label. So the royalty drops to $364,100. But the band's producer also earned a 4% royalty of $203,760, of which he already received $50,000. So the band has to pay him an additional $153,760, reducing their royalty to $210,340. After pocketing $310,340 (which includes the remaining $100,000 of the advance), the band has to pay their manager 15%, or $46,551, and give 2% of the total deal, or $101,880, to the power lawyer who got them the deal in the first place. That takes the band down to $161,909. That's not bad money, but it's split four ways, or $40,477.25 each, about the same as a city sanitation worker with two years' experience, without health benefits, vacation and retirement fund. But with, of course, groupies. "That...magic, the start of something revolutionary-the Minneapolis Sound, we should cherish it and not punish prince for not being able to replicate it."-Dreamshaman32 | |
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Very interesting! | |
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AaronUnlimited said: NuPwrSoul said: AaronUnlimited said: anybody there NOT a has-been?
It usually takes a fall from popularity to see what they really have in front of them, and what they've given up along the way. When you're flying high most people don't really pay attention to what's being lost in the process. On the other hand, once you've spent all your money on drugs, women, and all kinds of gaudy rock-star crap, you suddenly think life isn't fair and that you deserve a second chance since you blew the first one. --- You never get tired of being an asshole!!! You do not know that all of the artist in the group have blown their money on drugs, woman and gaudy rock-star crap. Some of them probaly have but, not all. In some cases their are artist back in the 50's and 60's who never saw a royalty check. You cannot blow what you never received. You need to do a little more reserch into this issue before you get on this site and make a ass out of yourself. | |
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NuPwrSoul said: AaronUnlimited said: NuPwrSoul said: AaronUnlimited said: anybody there NOT a has-been?
It usually takes a fall from popularity to see what they really have in front of them, and what they've given up along the way. When you're flying high most people don't really pay attention to what's being lost in the process. On the other hand, once you've spent all your money on drugs, women, and all kinds of gaudy rock-star crap, you suddenly think life isn't fair and that you deserve a second chance since you blew the first one. Possibly, but I doubt that's the case for everyone. It goes more like this: A music industry case study New York Daily News Wednesday, February 19th, 2003 http://www.nydailynews.co...7008c.html A look at a mythical rock band's earnings, with actual figures compiled from industry sources: New York City's hottest new band is Grunthead, a four-piece hard rock group from Maspeth. Because they've got buzz, the band gets a 15% royalty rate, a few points above the usual amount for a new artist. Its debut, "Gruntastic," goes gold – only 128 of more than 30,000 records reached that level in 2002. The Gold Record Gross: 500,000 albums sell at $16.98 = $8,490,000 The Grunts' royalty is 15% of retail. That's $1,273,500. But the Contract calls for "packaging deductions" of 25%, so the gross drops to $6,367,500. Then there's promotional albums and giveaways the labels give to wholesalers, retailers, radio and the press. That's a "free goods" charge of 15%, so the gross drops another to $5,094,000. So, the band's royalty is actually: $764,100. The record company keeps the packaging and "free goods" funds. After collecting a $9.99 wholesale price, it also reaps an additional $829,900. The $3,500,000 balance goes to retailers, assuming they sell the record for list price. Because the band was hot, they got an advance from the record company of $300,000. They spent $200,000 of that recording the album, which included a $50,000 advance to the producer. They pocketed the remaining $100,000. Additionally, the label spent $100,000 making the band's first video, which got them played on MTV2. The band owes all of this money back to the label. So the royalty drops to $364,100. But the band's producer also earned a 4% royalty of $203,760, of which he already received $50,000. So the band has to pay him an additional $153,760, reducing their royalty to $210,340. After pocketing $310,340 (which includes the remaining $100,000 of the advance), the band has to pay their manager 15%, or $46,551, and give 2% of the total deal, or $101,880, to the power lawyer who got them the deal in the first place. That takes the band down to $161,909. That's not bad money, but it's split four ways, or $40,477.25 each, about the same as a city sanitation worker with two years' experience, without health benefits, vacation and retirement fund. But with, of course, groupies. --- My man you are always on point!!! Thanks for spelling it out of people on this site who do nothing but suck corporate ass and make excuses for crooked business practices. | |
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AaronUnlimited said: On the other hand, once you've spent all your money on drugs, women, and all kinds of gaudy rock-star crap, you suddenly think life isn't fair and that you deserve a second chance since you blew the first one.
MC Hammer anyone? "I saw a woman with major Hammer pants on the subway a few weeks ago and totally thought of you." - sextonseven | |
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