Artist versus Label - Digital Download Royalties

A Major Label Artist Makes 8 Cents On a 99-Cent iTunes Download...

Where is the love in this war on downloads and digital formats. This article clearly shows how the artist has found themselves  in a position of clearly being raped of profits and royalties. I must be clear that this rule only applies to artists that are signed to major record labels. Maybe some independent artists have this to worry about, maybe not. UMG has a deal in place with their artists that they only make 40% of the revenue made from a digital download. Now what might type of costs does an artist get when a song is downloaded? I thought that the idea of a digital download gave the artist more revenue because a digital download does not have a cost attached to it like packaging a cd.

Look at this example from Digital Music News and countless other bloggers (Digital Music News, 2011):

There are two major deductions stated above that no one even knows about until now. The average person would need a lawyer just to figure out what these deductions really mean. What is “Less Net Sales Deduction”. That is a deduction of 15%. The second one is “Less Container Charge for Audiophile Records” at a whopping 25%. That is a total of 40% of money taken from the artist. The picture gets worse as the forecast for more deductions will emerge on the next example. (Digital Music News, 2011):

The record labels have found another way for them to steal money from their artists. There is no way that they could have not learned for the mess that they are in already.  I am wondering if the federal courts are going to side with the labels or the artists in this case. I think that the artists have the upper hand, but you know that lobbyists play a very important role in keeping things in place in favor of their personal gain.

Rapper Chuck D is leading the way in suing UMG for digital downloads. His case has the backing of federal courts that is keeping the case in the public eye. His case will hopefully bring an end to the recording industries abuse of power over their artists, especially past artists who live on fixed incomes and did not have a clause in their contracts regarding cd sales and digital downloads.

What will be the future of the recording industry if they cannot find a common ground to exploit music for their gain? The average artist today does not need a record label or distribution. They do not need the big marketing machine’s to get the product to the masses. The artists can fight the big fight today and hopefully the outcome will be in their favor. 

Music publishing is the industry that can harbor all of these problems for individual artists, composers, and songwriters. One can start their own publishing company and get their songs placed on iTunes and get all of their profits with companies like Tune Core. The profit margin is 100% for the artist.

The is a link below explains how one should go about being paid using Tune Core and iTunes. It also explains how you should sell your music and also discusses pay rate. This is a must read for those that are serious considering selling their music in to todays music industry, as well as becoming independent music publishers.

The Different Types of Publishing Deals

There are various types of publishing deals available for songwriters and composers. Jeffery Brabec is VP of Business and Legal Affairs at Alfred Publishing, Jeffery Brabec talks about the different types of deals that are available. He talks about the difference between hip- hop and rock and roll publishing deals. He also talks about composer and writers roles within a publishing deal.  I personally believe that in order for one to be successful in the music business, they must know the business of music. Jeffery talks about the structure of contracts in the business.

Jeffery Brabec talks about hip hop deals and their structure. These deals are based on how many units are sold. He talks about how sampling plays a role in how a song is published. Samples take time to clear or sometimes it takes a short amount of time. Deals are expensive because of the payoff of the sample. He compares these deals to rock and roll deals. They are structured based on advances payable to the writer and producers. Based on albums and cuts to be released. Hip-hop deals are not as stable because labels do not know what percentage will be paid because of the money owed to the sample. (ArtistHouseMusic, 2011)

So many musicians, songwriters, and creative minded people fail at the business of music, because they know less about the business and more about their craft. There is nothing wrong with that if that is what you want. I know from experience that there are people who will let you compose on their records, let you walk out the door right, and you hear it on the radio while that recording sells a lot of units for a profit. The main goal for this post is to educate as many people as possible and bring awareness to the business of music publishing to those that do seek the knowledge.

THE MUSIC INDUSTRY VLOG ( Indie VS. Major Part 1)

 

I am passionate about the subject of music publishing. I have had my own experiences as a musician working with producers, a @ r reps, record labels and other musicians. A musician, songwriter, and producer can walk into a recording session and play their soul onto a recording and walk out the door without anything. It is my goal to network and provide content to those who are interested in gaining knowledge about the business side of the music industry.

Understanding Music Publishing: The Basics

This article clearly explains the basics of music publishing. The article covers copyrights and the difference is a sound recording and musical compositions. It explains how to make money through publishing and the several licensing vehicles involved in music publishing. It also covers mechanical, synchronization, public performance, sheet music, and public display licenses.  

The bottom of the page has a nice treat for those that seek knowledge from an experienced producer in the hip hop music game. It is a vlog (video blog), so please watch it as it is informative and maybe a little graphic.

This vlog is presented by independent hip hop producer Epik the Dawn. He is explaining the ins and outs of the music publishing and music business. A lot of people don't really know the importance of the conversation about music publishing. Epik really explains music publishing for anyone to understand. He explained advancements, placements, publishing deals, contracts, negotiations, bidding wars, producers, independent producers, management and lawyers. His website shows his versatile producing style. He runs his business from this site licensing his music via the internet. Please click on the hyperlink to view the entire article.

 

The next article comes from a songwriter’s blog named "Blogger Muses". The name of the article is "The Pros and Cons of Signing a Publishing Deal". It does give the pros and cons of publishing deals, but more importantly it give the reader options other than signing a publishing deal. It gives the reader the option to become their own music publisher and shop their own music while building their own brand.  All of the information here is for the empowerment of the individual and not to sway a person from signing publishing deals.