It's Bing Crosby's fault. | |
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This is a misconception that is quite prevalent. An advance from a record company is NOT a payment. It is ecentially a "loan" that will be recuped from the project. An established act with a track record will, of course, receive a bigger advance than an unproven act will. | |
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It's not a "loan", at least not normally. It can be recouped. Of course, because it is an advance.
Point was, many artists ARE paid, first and without any pain. | |
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Try to follow this. Say you start a new job. They give you a 3 year contract. On the first day, the company gives you $50,000 as an "advance." You use this money to buy equipment that you need to do your job. Computers, cell phones, shovel, or whatever.This goes into the debit side of the accounting ledger. They also add the cost of your training, paper, pencils, electricity, water you use, and a charge for the air you breathe. All of this is charged to your "project." You are starting work in the hole. Lets say you do a great job and start making the company money and a year later your direct efforts have generated $50,000 in revenue. Now you start getting paid, right? Nope. The company has a 3X/10 clause. That means the company will recoup three times their investment before they start paying you .10% of the NET.
Change "job" to record company contract and you have the system that is in place. Everything else can be substituted for recording, promotion, studio musicians, etc.
At no time are you free to walk away from that contract and work for someone else.
Better off going with a bank loan that charges 5%. | |
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You don't have to explain to me how a record company contract works. I advised plenty of artists about them. Nor do you need to exeggarate or draw pointless comparisons.
An advance is naturally not the same as a salary and artists usually also don't have to buy any equipment, let alone they need to pay for paper and pencils, water or even air. They are often paid an amount of money in advance to produce an abum and be able to make a living with.
Costs that usually are recouped therefore are the costs for studio time (thanks to new recording technology these days not so much needed anymore) and the costs for producing and distribution (with the internet these days neither). Unless, you are an idiot and you signed a deal telling you to pay for everything. Usually artists are paid (much) more in advances than the average costs.
When the advance is not recouped, the artist is not left with a loan. No, the record company then takes the loss. Therefore: often the artist gets paid FIRST and WITHOUT pain.
By the way: comparing artists to employees with normal jobs and salaries doesn't do them any favours. As soon as that would fly, their record companies would become their employers and the legal owner of their copyrights. Gone then are any and all control and renumeration possibilities they might have had.
[Edited 11/15/11 6:47am] | |
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I have no idea what kind of advice you give, or what artist you are advising, so I can not comment. But I do know that you took my figurative comparison WAY too literaly.
This is the part you left out of your previous post which would have indicated that you understand the process. Self-corrected.
Not too much exaggeration on my part. But hey, I am a working musician in China. You have never heard of me, unless you live here. Don't take my word for it. Try Steve Albini, producer for Nirvana. It is worse than you think.
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I know that piece by Steve. He does make several good points in it, but it's 20 years old, onesided and yes, also exeggarated.
The biggest problem with it, is that it doesn't put any responsibility on the shoulders of the artists for the "shit" they are in. Worse, he portrays artists as a bucnh of helpless morons willing to do ANYthing to get a deal. Not exactly helpful to do that, wouldn't you think?
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You know, there was on thing I forgot to mention about what's wrong with the music industry.
It's the fact that recording artists have never banded together for fair and decent, standard industry contracts.
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For example, at the moment I have a client, singer/songwriter/musician, tied to an exclusive agreement with a major music publisher. He is very talented, makes great music, but they are not promoting him. On the other hand, he doesn't do what he is supposed to be doing either. He wants to get out of it, but they don't want to let him go without them keeping all his copyrights. | |
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That's interesting. Do you release music there? | |
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You mean form some type of union, like the actors? | |
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So if he was alive, how do you think both parties should have handled it? | |
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Yes. Recording artists are pretty much the only group of creative people in all the media industries, that have consistently failed to do that. | |
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I am not sure, because I am not familiar with the exact terms of their agreements, nor with their exact motivations. But it would have been better, for both, if they had just sat down together and tried to work something out. | |
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Sounds like a good idea. I wonder if some artist out there would one day publically suggest it. BTW, I am impressed with your list of what is wrong with the music industry today | |
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I see. | |
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Tremolina how much do the record companies get for every blank CDR disc sold? The last time I checked it was about .57 cents. In later years music Cd's on average solf fore $13.95, in the States. As we say, do the math. Record companies didn't make nearly as much if they sold a music Cd's versus getting cents on every blank CDR sold.
Let me say this, record contracts come in many forms.
I'll be back to give my solutions.
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Would you still care to get into the questions I asked you? I am genuinly interested in your reply. | |
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There have been some. Don Henley for example with the Recording Artists Coalition (RAC) started some good initiatives. But the reality of that organisation is that it cannot exactly be called a "coalition". Not a "coalition of the willing" anyway...
Thanks by the way for the compliment. [Edited 11/15/11 10:29am] | |
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Depends per country on the laws and collective rights agreements that exist there.
Of course they didn't make as much as on a normal CD, but then a copy on a CDR is not a normal CD, so that's not the point. The point is that BY DOING NOTHING they make money off something (homecopying) that would happen anyway. All pure profits, they wouldn't have made without these royalty systems. And I can tell you that around the world they make SHITLOADS of money a year with those kind of royalties. | |
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Maybe one day it will happen, and you're welcome. | |
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If songwriters and recording artists wish to improve their situations, they surely should.
Maybe the upcoming 2013 battles and the further downturn in revenues will help them wake up. | |
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Also TD, it's not just record companies who have this royalty right. Recording artists too, as well as songwriters and/or their publishers.
Next to that of course, music copyright owners are paid many, many hundreds of millions a year for the public broadcasting on radio/TV/internet of their music, as well as in most countries, in ANY place where music is "made public", like bars, discos, stores and even club houses.
The music industry still has a lot of revenue coming from these sources.
It's the major downturn in record sales that is the only real problem with their revenues. | |
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Worth seeing because the industry is sinking to the lowest denominator. | |
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What is he supposed to be doing, if I may ask? Touring? | |
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You and I are left brain/right brain, haaaaa. I focused on the numbers chart at the bottom. This is a bit dated, but it is a good template on how the industry got to this point in history. It show how a band could have several hit records and have no money to show for it. | |
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Once again, information comes out at the end, that would have shone a different light in the beggining. You are such a tease. | |
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I have a band that gigs regionally and as a fill/support musician for international acts. I have played in support of Coco Lee, The Wonder Girls, Beyonce in Shaghai in 2007, Jay Chou, and a few others. Hong Kong and mainland China, where we are based, is night and day. Releasing music here is an entirely different animal. If you were to print a traditional cd, you would be able to find it at a bootleg booth a week before your release date. We sell/give away our original music at live shows in thumb drives. | |
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I can guarantee you that it will be very interesting. Possibly even some true powershifts and positive changes will occur within the industry because of it. | |
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