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Originally Posted by kane
Major Label Artists ends up having $2million dollars worth of production and promotion put behind their album. They sell 2 million copies of that album, but still don't make enough to pay back the studio. However, they score a top 10 hit single so they are making some great money off of performance royalties from radio stations. They might license the music (if they own the publishing) and make more. Where they will score big is touring.
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first of all those royalty streams like radio play and album sales licensing the music are all covered in the payback scheme of a standard record contract, so NONE OF THOSE REVENUE EXIST UNTIL AFTER YOU PAY BACK COSTS
second of all with vertical integration record companies will "licence" artist songs for free for feature with in their TV shows etc as promotion (what sick is they used to CHARGE for that)
third promotion cost are over inflated for example, a guy screening your emails and answering them in your voice may be paid $10/hour but when it charged to band it charged at an average for an employee of the company (including the CEO being paid 5-10 million a year) so you get charged $60-70/hour for that shit.
fourth recording albums are staggered in development. while the entire album is recorded only a single is fully produced, and marketed. If that falls flat the album is locked in a vault never to see the light of day.
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A record that sells like that will have them playing a summer festival circuit followed by a ton of holiday large scale shows where they play radio station concerts, music festivals etc. By the spring they will have likely opened for a larger act and are now headlining their own tour and playing in front of 1,000 -2,000 people every night.
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you keep accusing me of pulling number out of my ass
tell you what why don't you find one artist who performed in one 25,000 person stadium and not paid back the production cost of their album
the situation your talking about hasn't happened yet, the guys who made it big enough to do those massive tours are all the extreme rare success stories who actually covered cost
most artist how don't cover cost find their album locked in a vault and find they are legally prohibited from performing their shit live because they no longer own the copyright
this kind of bullshit pipe dream the worst thing you can do to an artist because you make them believe that the screw job they are getting is some how fair
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All that said, if the major label artist has their album come out and it crashes, burns and fails big, then the kickstart person made more because likely the major label artist will only ever see the $20K advance and little or nothing more.
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google street corner symphony and read a little about the shit the lead singer went thru with his record deal.
the guys solo career was killed because the record company didn't want to release the album
he had to create a band, go on the sing off, and he still prevented from using that success to sell his own solo shit for another 2 years.
he is just fucking luck he wasn't in a band first because then he would have been totally screwed.