Record Companies – Need em? What do you think..
In a recent Rolling Stone article – using Adele as an example, statistics showing what artists can actually make in the current music scene painted a picture somewhat different then we starstruck consumers might expect. With distribution ranging from Youtube to MP3’s, DVDs, CDs and even Vinyl records (Shinedown is releasing a double album of ‘Leave a Whisper’ on Vinyl..maybe the guys at Radio Shack can be a little more respectful of those of us coming in looking for stylus needles…BTW I want this set!!)
So who is making money? It’s complicated…Rolling Stone reports : Spotify, MOG, Rdio and other subscription services are either free (with ads) or charge users monthly fees for unlimited streaming music. The quick calculation, according to one band manager: If a song gets streamed 60 times, the songwriter receives 9.1 cents in mechanical royalty payments. And the performing artist gets 38 cents (or splits that money, half and half, with a record label, per contract).
The writer in this case only gets 9 cents…(so write and sing your own stuff). This is just one example and contracts can vary based on the artist’s popularity. Nothing new there.
Ok, but some argue that even in a day when crafting good sounding multitrack recordings is affordable and limited only to skill, there is a value the record company does provide. It amazes me how many great new artists have become known through video game soundtracks.. WWE.. and other new avenues. How did they get there? Isn’t it the record company that gets those deals?
What do you think?
Read more: http://www.rollingstone.com/music/news/the-new-economics-of-the-music-industry-20111025#ixzz1cV3ndTUE