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A world without the big fat record labels
StoreTags: big bad labels
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Today I did some thinking about big labels, super-rock stars and gathered some quick numbers from the inter wide web. I know it's not this simple, but it's interesting:
Lets assume all 4 of the major record labels vanished, but the amount of money spent on music stayed the same.
Total music sales in 2005: $33.5 Billion
The 4 big labels control 95% of this, so that's $31.8 Billion which goes to the top 2% musicians.
Lets say that record sales of $100 000/year allow an artist to "make a living" from selling music. Depending on how much the label takes, (none if the artist decides to do all the promo and distribution work)... i.e. if the label takes 25% (for an online release for example) the artist makes $75 000 a year.
***So if the big labels vanished, that means 318 000 more artists could be make a decent living off selling their music.***
The funny thing is, this doesn't *necessarily* mean that those big named artists would make less money. Most artists make money of concert tickets, and that is not included in the above $33.5 Billion.
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11/14/06
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jdg
RIAA 2005 sales chart
link
always an insteresting read.
11/14/06
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Squeal
Download singles.....where it's at.
11/14/06
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adcBicycle
Thanks jdg. Those are the american numbers.
Here are the numbers from the rest of the world:
link
11/14/06
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mlbot
is that $75,000 per person, or per band, by your calculations?
And do you have a plan on destroying these top 4 mega-labels? We want in.
11/14/06
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jdg
dope! i didn't know about those world sales one..
i love these types of numbers.
11/14/06
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adcBicycle
a la fight club with the credit card companies.
$75000 per band I guess... but 4 members of band could be 4 members of the 318 000 and make that each since bands often sell more records.
11/14/06
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adcBicycle
I love these types of numbers: prime numbers, odd numbers and imaginary numbers.
11/14/06
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jdg
i hate these types of numbers:
credit card balances, medical bills, speed limits
11/14/06
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lunatinker
adcBicycle said: "$75000 per band I guess... but 4 members of band could be 4 members of the 318 000...."
i seriously doubt that kind of take home pay for even, say.... 50cent.
you get an advance, maybe some tour food.....
i think a little more research on the actual cash in hand earned would prove revealing...
11/14/06
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VC
I say STFU or stfu. All we need is an MTV(for us).
11/14/06
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ignatius
lunatinker said: " adcBicycle said: "$75000 per band I guess... but 4 members of band could be 4 members of the 318 000...."
i seriously doubt that kind of take home pay for even, say.... 50cent.
you get an advance, maybe some tour food.....
i think a little more research on the actual cash in hand earned would prove revealing..."
every deal is different. record labels are like banks. they give you an advance (loan) and you go record your album. your album comes out. the label promotes it (hopefully) and gives you "tour support" ($$ promo). the artist gets money from the songs being played on the radio, concert tix, licensing for products etc.
the record company starts paying the band/artist royalties from CD sales once they have recouped their investment. so, some penny pincher is keeping track of every dime the record company spent on promo + the advances to the band/artist, recording, manufacturing costs etc.
so, once that money has been recouped, if the record is a hit and starts selling a ton of copies then the artist/producer will start seeing big $$ if they didn't get hosed on their deal and had a decent lawyer to make sure of it.
also, then there are bands managers who also get a chunk of the artist's change.
i met prodcuers who got a $60K up front fee and 3points on the record. so every record sold they basically got 3% on the back end.. FOREVER. this is how producers really make the $$.
if they are getting 3% then the other 97% goes where? split between the band members/manager and the recocd company. so, a record sells 1 million copies.. you do the math. a CD costs $1 and sells for beteen $12 and $15.
so, round it down even. lets make it $10million. producer gets $300K.. band and record company and manager get $9.7milllion.
if a record sells a million copies and has one top 40 hit that's a ton of royalties from radio play.
50cent is rich as fuck. he's sold around 22million albums worldwide.
11/14/06
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jdg
producers.. get that backend deal if u can!
i met a guy the other week who makes a living producing indy rock.
like little bands.. nothing huge.. some bigger local acts... but he gets points on their records... and it pays him to live.
amazing.
11/14/06
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ignatius
jdg said: "producers.. get that backend deal if u can!
i met a guy the other week who makes a living producing indy rock.
like little bands.. nothing huge.. some bigger local acts... but he gets points on their records... and it pays him to live.
amazing."
you just wanted to say "backend deal"
11/14/06
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jdg
i sure did
11/14/06
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ignatius
that's more than 3%
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