Artists or record lables

[BradL1279]

ok, iam not to smart on this, with us downloading all this music and so fourth. who gets hurt the most the record companies or the artists. is cd sales where the artist gets most of the money or is it just something that gives them alittle more. thanx

[endersgame21]

The record labels definitely are getting hurt more as they make a lot more money off of the CDs since they rip off the artist. Major artists like eminem and britney spears don't get hurt that much really because they get plenty of money off of touring and still make tons of money off of CDs and merchandise. Less popular artists are probably getting hurt a lot more.

[UBER-RAT]

see my sig.

[aqlo]

The artist makes their money off touring and sometimes movie residuals and endorsements. the cds are basically marketing for them, and p2p is just as good marketing. but they also depend ~heavily~ on up-front fees paid by the record companies when renegotiating contracts (i e legal bribes) and that we Are threatening in the sense that bankrupt record companies won't be able to buy the souls of ''artists'' like the metallic ones

[matstao]

I know the entire article is a bit long, but the introduction & chart at the bottom answer this threads question for me.

Steve Albini writes:

"Whenever I talk to a band who are about to sign with a major label, I always end up thinking of them in a particular context. I imagine a trench, about four feet wide and five feet deep, maybe sixty yards long, filled with runny, decaying shit. I imagine these people, some of them good friends, some of them barely acquaintances, at one end of this trench. I also imagine a faceless industry lackey at the other end holding a fountain pen and a contract waiting to be signed."

...

"The Balance Sheet: This is how much each player got paid at the end of the game.


Record company: $ 710,000
Producer: $ 90,000
Manager: $ 51,000
Studio: $ 52,500
Previous label: $ 50,000
Agent: $ 7,500
Lawyer: $ 12,000
Band member net income each: $ 4,031.25 "


I recommend the full article: http://www.negativland.com/albini

[BradL1279]

so should i not feel bad for the artist, for getting thier music for "free" cant really say free, nothing is for free, iam paying 50.00 a mo. for cable and over a 1000.00 for a computer, and so forth, for without that i would not be able to get music, so i can't say for free, i can say more so for convenience. True?

[kamnet]

Having worked several years with a recording artists and the various studios, I'll give my input.

If the artist is on a major label (Sony, WEA/Time/Warner, Atlantic, etc.), then it is the record label that is hurt the most, since they own the copyright on the recording in most instances. The label pays for nearly everything up-front in a loan of some sort and make all their money on the retail sale of CDs. The artist is somewhat affected, but generally insulated because most likely if a particular song is heavily shared on P2P networks, it has already done very well in the consumer market with many units sold. If the CD has sold well in the stores, they can most likely get signed for additional deals by the same label, which only builds up their relationship. Artists who don't sell well will get dropped, but most likely their music isn't being widely distributed by P2P, either.

If the artist is on an smaller indie label, then both the artist and the label are generally going to be hurt alike if a file ends up being very popular. Smaller labels cannot produce, distribute and promote in the same manner as the large labels can. Usually on smaller indie labels the label is taking 100% of the cost on everything and can't even afford to give the artist any up-front money, both of them are waiting to split the profits from retail distribution. If a CD is being shared popularly on P2P networks then this is most likely taking away from those sales - either no units being moved or prices having to be majorly slashed in order to move them.

Now in both of these cases, there are obvious exceptions. Exception #1 will be if the song is no longer available through most retail channels (Amazon.com and other wholesalers being the exception). In this case the label or artist most likely is no longer making money from the sale of the CD and so there can be no loss. Exception #2 is if the label is also smart enough to offer sales of MP3s etc through their Web site, a P2P network, etc. If they are doing this, then the likelyhood that fans will buy it rather than steal it are much much higher.

There is a 3rd scenario - if the artist is funding it everything themselves and looking for a label to pick it up. This really depends on the artist's own attitude as to whether P2P is harmful. If they've invested a lot of time in it and somebody has leaked it, then the artist is clearly screwed over. But if they didn't invest a lot of time in it or are just hoping to get some attention, then they probably won't mind it and may even leverage it themselves.