Music Companies

Discussion in 'Movies, TV and Music' started by kotzunder, Oct 17, 2003.

  1. kotzunder

    kotzunder New Member

    Aug 21, 2003
    Do u know how much of the 15 $ of a cd goes to the music company and how much to the artist?
  2. skipshady

    skipshady New Member

    Apr 26, 2001
    Orchard St, NYC
    I'm not sure if I have the numbers right, but I believe an artist gets 10 to 20 percent of sales and the songwriter gets 70 cents/10 songs - though it's customary for record companies to withold 25% of the 70 cents for no apparent good reason.

    But the artist is responsbile for paying promotional costs. That includes tours, videos, radio promotions, managers, etc. And a good chunk of the songwriter royalty goes to ASCAP or other copyright clearing houses. And the artists get the same 10 to 20 percent whether you're a solo act or a group (the former manager for N*Sync was sued because, among other things, he was getting paid not only his manager commission, but also as the 6th member of the group).

    So let's assume that your favorite singer gets 10% of sales. Well, out of the $15, let's now assume that the store gets $6 (I don't know about this number, I assume the store gets more). So the record company gets $9 per CD. Your favorite singer gets 10% of $9, so that's 90 cents/CD.
    The album does reasonably well and goes Gold, so the singer gets $450,000. But if it went Gold, then the label must have done a lot of promotional work. A music video here, tour support there, radio promotion here. Buy the time the artist is done paying his bills, there's a good chance he's down to a big fat zero.
  3. kotzunder

    kotzunder New Member

    Aug 21, 2003
    so for example greatest bands that have sold like 50 milions of albums have got like 75 milions $ that / 4 or 5 (the usualy number of a rock/heavy metal band) are like 20 milions $ ......hell its not much , i mean sport players get alot more in their carreers
  4. skipshady

    skipshady New Member

    Apr 26, 2001
    Orchard St, NYC
    Well, bands with more clout get a bigger cut of the pie than upstart bands, of course. And if you're that big, you probably have other sources of income like publishing, merchandising and endorsements.
  5. kotzunder

    kotzunder New Member

    Aug 21, 2003
    yes i see ...anyway alot less disgusting than what i thought (i wronged my calculations converting to another value....i thought they got like 3000 , 4000 milions...hehehe)
    merchandise anyway sucks (t-shirts and few else are ok)...u see almost everything with the name of the band u like on it
  6. PSUdude

    PSUdude New Member

    Dec 15, 1998
    Elmhurst, Queens, NY
    wasn't it the pop group TLC sold 30 million copies of one album and after the record company, managment, legal, and other pseudo-white collar crime syndicates that are atached to an atrist, they actually OWED money???lets not forget the Goo Goo Dolls also had this problem as well

    See, Behind the Music did teach people about the scum that is the recording industry
  7. nicodemus

    nicodemus Member+

    Sep 3, 2001
    Cidade Mágica
    PAOK Saloniki
    Nat'l Team:
    United States
    It also depends on where the CD/tape/8-track is purchased. A band sees much less of the cashola when purchased from a store than they do if it is purchased from their personal website or at a concert. Oftentime, if you buy the CD at a concert, the band has purchased those CDs wholesale from the record company, usually for around $7 or $8 per CD. They now own those and can resell them like a store for whatever they want. I've seen CDs at concerts go for anywhere from $10-$ the artists usually clears $3-$13 per disc if purchased from them at a show, a significant improvement over what they tend to get if purchased at Wherehouse Music, Virgin, Tower, or via or even the record label's site.

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