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A Music Industry Case Study

spmkk writes "The NY Daily News has an uplifting look at the fate of a (hypothetical) 4-piece band "making it big" in today's RIAA-driven music industry. The condensed version: A band that sells 500,000 records for $8,490,000 gross ends up (after a few iterations of the new math) with $161,909 in their pocket. Split four ways, that's a whopping $40,477.25 each for a record that probably took close to a year to produce. And this is for a record that goes gold (as per the article, only 128 of some 30,000 records released in 2002 were so privileged). And I bet you wanted to be a rock star when you were a kid..."

555 comments

  1. You know why? by Anonymous Coward · · Score: 5, Funny

    "Blame it on piracy! Piracy, robble robble robble..." - Hillary Rosen

    1. Re:You know why? by reezle · · Score: 1

      Haha... I'm just imagining the Hamburgler being the official spokes-(person?) for the next Napster... I'd make a great commercial.

      (Now what part would the clown play, do you suppose? Ronald==Rosen?)

    2. Re:You know why? by Anonymous Coward · · Score: 0

      The recording industry is a criminal operation, an oligoply, protected by lawyers and bought-off politicians who help them rob from fans and artists alike.

    3. Re:You know why? by Anonymous Coward · · Score: 0

      Piracy!!!!!!????? you sir are a dumbass... first of all losses to piracy are not included in the 8.5 billions they they mentioned... you cant make money of something that was stolen!!! those 8.5 billions came from the people who actually bought the music.... the only ones doing the robbing are the SOB's that run the entertainment industry ... those bastards!!!

    4. Re:You know why? by macdaddy357 · · Score: 2, Informative

      Do we need any further evidence that the recording industry are the real pirates? Don't buy CDs. Buying them doesn't support the artists. It only enriches the parasites exploiting them.

      --
      How ya like dat?
    5. Re:You know why? by vistic · · Score: 1

      You sir are a dumbass for not recognizing an obvious joke when you see one... even when it has a hamburglar reference in it... i mean, come on!

      *rolls eyes*

    6. Re:You know why? by kirn_malinus · · Score: 2, Interesting

      Blaming this on piracy is a joke, but blaming the complete suckage of music these days on this isn't. If artists are only getting $40,000 a year by releasing an album a year, they have to release an album a year. Yuck.

      --
      All circuits busy.
    7. Re:You know why? by ichiji · · Score: 3, Interesting

      I was in the music biz for many years. The most money does not come from artist royalties (discussed in the posting) but from merchandising, songwriting royalties, etc. Some artists also make money from live performances; for some it's just a loss leader. Remember, it's the music business, not the record business.

      --
      Heather Meeker, software lawyer
    8. Re:You know why? by OMEGA+Power · · Score: 1

      Just remember, when you download a mp3 your ripping off the artist and everyone knows that's the record label's job

    9. Re:You know why? by Anonymous Coward · · Score: 0

      No, they have to release an album a year to maybe have a slim chance of making 40k that year, if their album happens to be a really big hit.

      No wonder many of the less well-known, less popularistic bands publish under their own record labels.

    10. Re:You know why? by Anonymous Coward · · Score: 0

      RIAA fails to see that marketing exclusively to 9-14 year olds with acts like Nsynch/Britney Spears drives all of thoses consumers aged 18-50 towards other entertainment (dvd and video games).

      A $15 dvd (that's a 'new release') is more entertaining than a $15 cd.

      Ironic: The music industry pushes liberal ideas like mass transportation which drives consuemrs out of their car and away from their radio/cd player. Does that lower sales too?

      I still think a mp3 burn on demand kiosk at $0.25 a song will work better than a traditional music store.

    11. Re:You know why? by mikey1134 · · Score: 1

      Piracy is the LEAST of the problems for a band. Almost all of the 8 million in the example went to the record company. This had nothing to do with piracy, this was the greed of the record company. And trust me, it didn't cost anywhere near that much to produce or promote their alums.

      --
      <gir voice> I love this sig... </gir voice>
  2. not a rockstar by Stinson · · Score: 1

    even when i was little i never wanted to be a rock star, there was something always seeming that much more special about being underground. yay for punk rock

    1. Re:not a rockstar by 10Ghz · · Score: 4, Insightful

      Rockstars are just underground punk-rockers that became popular. It seems to me that there are people who prefer bands that are underground (read: "not popular"). The moment those bands become popular (even though if their music didn't change and/or become more mainstream), the fans reject them because they have "sold out to the mainstream" or some other crap like that. I guess it's more l337 to like some unknown bands even if their music is no different from the more mainstream bands

      --
      Lesbian Nazi Hookers Abducted by UFOs and Forced Into Weight Loss Programs - -all next week on Town Talk.
    2. Re:not a rockstar by Squareball · · Score: 5, Insightful

      Some one forgot along the way that it's really about the music. Musicians don't make music so that they can become famous.. they make music because they love to make music. Sure we strive to "make it" but even though most don't make it.. it's still rewarding. True music is an art.. prefab music is a business. I have been writing songs since I learned guitar when I was 12. 8 years later I have a band... I could care less if we "make it". I just love to get together with my band and play music and give that music out to people who want to hear it. Remember, there are a lot of rock stars and wanna be rock stars out there.. but a lot of them aren't musicians.

    3. Re:not a rockstar by |deity| · · Score: 5, Insightful

      "The moment those bands become popular (even though if their music didn't change and/or become more mainstream), the fans reject them because they have "sold out to the mainstream" or some other crap like that."

      Totally untrue. Most of the time these bands produce one record that fits their old style then fall to the hype from the record companies. The record companies will say, "hey, change this and you'll sell a couple hundred thousand more albums", or "Let's sound more like band X so that we can reach a wider audience."

      When a band changes just to sell more records, forgetting the fans that got them to the point they are at is, when the band sells out. Sometimes the bands just change as the members get older. But any fan can tell the difference when a band starts "selling out".

      --
      Environmentalists are their own worst enemy. ~tricklenews.com
    4. Re:not a rockstar by ComputerSlicer23 · · Score: 4, Interesting
      Curious, some of the biggest music fans I know didn't like any of U2's new ablums. I've known this guy 10 years. When I first met him he loved all of their older music, but anything that came out that was new was stupid. Now some of the same music that he used to call mainstream sellout crap, is the music he likes from them. I've pointed this out to him, and he's conceded that it's true.

      A lot of people don't like anything that gets radio play, because that's the crap that people listen to. I think a lot of people don't like anything that's on the radio, because then they get to act like experts, and play along like they understand the something about music other people don't. For the most part, most people don't have an inner genius that conveys more information about high quality music then the rest of the general public. I stopped listening to the 5 years ago, and I have about 20 CD's that I can happily listen to for extended periods of time. I'm not big into music, but I laugh at the pretensious people who act like they know more about music then the general public, because they've decided they know more.... *grin*

      Kirby

    5. Re:not a rockstar by CashCarSTAR · · Score: 1

      U2 is a hard band to pin down when it comes to things like that. They seem to float in and out of different styles as time goes on, not a straight progression as one would expect.

      Boy-October-War: Punk
      Unforgettable Fire:Experimental
      Joshua Tree/Rattle and Hum:Classic/Country rock
      Achtung Baby/Zooropa/Passangers/Pop Alternative/Modern Rock
      All That You Can't Leave Behind:Classic rock

      That is how I would classify that. More than likely your friend did not like the style switch. Same thing happened to me. I can't stand their last album, and I used to be a huge fan. The arrangements were just too plain and boring for me.

    6. Re:not a rockstar by ComputerSlicer23 · · Score: 1
      He did change what he liked to listen to. However, the music he couldn't stand the day it came out, was cool 5 years later. Because 5 years later it wasn't played on the radio. I still say that a lot of people whom say "the stuff they play on the radio is preprocessed crap", are attempting to be rebels, and act condescending to the people they know who listen to the radio. It's my theory, and I'm sticking to it.

      Kirby

    7. Re:not a rockstar by sneakcjj · · Score: 1
      .. but a lot of them aren't musicians

      Because most pop stars don't write their own music. Anyone can learn to play three cords. It takes talent to write good music.

    8. Re:not a rockstar by JuddN · · Score: 1

      Or three chords, even ?

    9. Re:not a rockstar by de+Selby · · Score: 1

      Are people complaining about everything on the radio? I hate most of it, but most of it really isn't very good and it's always been like that.

      Take a look at some playlists from the 60's. It's almost all crap. After 5, 10, or 20 years go by, the good stuff gets filtered out from the rest and you look back at how great things were; even though, in the end, nothing's changed.

    10. Re:not a rockstar by Anonymous Coward · · Score: 0

      Heroin, before and after. Somewhere along the publicity and tour of "The Joshua Tree" U2 stopped getting along and certain members got pale and started wearing welding goggles at night, not that there's anything wrong with it. Next album, crap. Next album, crap.

      You know, Pink Floyd changed less when Roger Waters left; everyone I know who'd actually bought U2 albums (the round black things) throughout their career joked about it: "I think I smell a Lou Reed cover coming on. Dead pool -- place yer bets."

    11. Re:not a rockstar by kamapuaa · · Score: 2, Interesting
      No No No. First of all, many of the most popular bands weren't underground punk-rockers that became popular. Early on, they get picked up by a musical promotion company. Avril Lavignone (or whatever) hardly had to work her way up the ranks.

      Secondly, it's a matter of how you like to enjoy music. Yesterday I got to talk to the amazing, self-made Cody ChesnuTT for a little while, then see him play his soul/pop/rock/etc. from a distance of 10 feet. He asked people what they wanted to hear, and really made a connection with the audience. Amazing. But I'd have little interest in seeing him play in a basketball stadium with an array of security/lighting technicians/so forth, all around him. I wouldn't hold it against him, it's just not as interesting.

      U2 is a bad example, unless you're from Ireland and saw them in the clubs before they became an international band.

      --
      Slashdot: providing anti-social weirdos a soapbox, since 1997.
    12. Re:not a rockstar by Azureflare · · Score: 3, Insightful
      Hmm so you enjoy living in the gutter?

      Seriously, when you make music, typically you want it to be your life, not just a hobby. If you want to make money doing it, and you're good, you should be able to. Which do you value more? The music musicians make? Or the papers lawyers shuffle around endlessly?

      One could say Lawyers put more effort into it. However, I don't think anyone can say that making good music is easy. It's just one of those things that are subjective. Music is something that only a few can make a living doing.

    13. Re:not a rockstar by Anonymous Coward · · Score: 1, Insightful
      One anecdote from a non-music listener rates Insightful?

      I'm not big into music, but I laugh at the pretensious people who act like they know more about music then the general public, because they've decided they know more.... *grin*

      The moderators find no irony in this line?

    14. Re:not a rockstar by Anonymous Coward · · Score: 0

      Fame changes people. It's natural that a life of striving and obscurity will result in a different type of music than one of fame, comfort and riches. I agree with you, to pretend that musicians and their music don't change across a career insults reason and musicians.

    15. Re:not a rockstar by TibbonZero · · Score: 2, Insightful

      I'm not big into music, but I laugh at the pretensious people who act like they know more about music then the general public, because they've decided they know more.... *grin*

      I know what your saying but I think i'm actually one of those people who act like they know more than most people about music. I've been a musician for some time now, and am studing Music Production and Engineering at Berklee College Music.
      But hey, who needs to know what a Tritone Substitution or Modal Modulation is?

      --
      Tibbon
      tibbon.com
    16. Re:not a rockstar by CashCarSTAR · · Score: 1

      Actually come to thank about it, the same thing happened to me..but for a different reason.

      The Smashing Pumpkins "Bullet With Butterfly Wings", I liked it..then heard it 2000 times then hated it. Then I slowly heard the song again and now it is one of my favorites. (not to mention being on-topic for this discussion!).

      I agree with you, a lot of it is just knee-jerk reaction to all-things mainstream. Not all of it is crap however.

      Part of the problem is that the term "preprocessed crap" is overused, to mean pratically everything. When it comes to Rock, there is a lot of good stuff out there...but it is not for everybody. The best rock by its very nature seems to get this ugly visceral reaction from some people on the other side of the genre. I'm guilty of it. I will not listen to punk. It is just not going to happen. And my friends who are into punk just can't stand bands such as Zwan, Coldplay and Audioslave. Such is the nature of rock these days.

    17. Re:not a rockstar by Anonymous Coward · · Score: 0

      They don't?

      You must have missed about every 80's rock-star kids fantasy movie and television show ever made. Remember, there are people out there who, reluctant as they may be to admit it, wanted to be just like Michael Jackson one day. Then he turned into a rich white woman and lost his/her mind.

      I enjoyed the elitist "I've been X since I was Y" comment though, that really brought a smile to my face. Okay, it didn't realy. It's more pathetic than funny, but maybe someday I'll learn to laugh at it.

    18. Re:not a rockstar by 1u3hr · · Score: 2, Interesting
      I still say that a lot of people whom say "the stuff they play on the radio is preprocessed crap", are attempting to be rebels,

      It can also be that when something is played on the radio, it's saturated, and what you may like the first or second time, after hearing it on high rotation (and not just on your personal radio, but everywhere you go)for a few weeks, you're heartily sick of it.

      Same for movie or TV previews and promos -- after seeing the same scenes a dozen times a day the idea of actually watching the whole thing is abhorrent. Though year later if you catch the rerun without fanfare, you may enjoy it.

    19. Re:not a rockstar by quintessencesluglord · · Score: 2, Interesting

      Well, I guess you're going to have elitist in any field. But by definition, that would have to be a small number... and of the hordes of albums released in a given year, how many make it on the radio? Yeah, elitist.

      Was schlepping around with my parents, listening to the radio, and much to my surprise, Slayer is played. I point out that same song would have NEVER been played when it was released (nevermind the fact my parents would be listening to Slayer, even if just sub-conciously). Is Slayer less cool now than then (or maybe cooler)? Hardly. It goes both ways.

      Longing for the day when they play Therion on the radio so I can be cool and mainstream. Or maybe I just fail to care. But it would make it easier if a band with over a ten year history got played once, instead of it being my own newest discovery ("Oh wow. Like they've been around for how long, and I've never heard of them."). Maybe if I listen to Britany Spears for another ten years.

      The radio still sucks.

    20. Re:not a rockstar by Dman33 · · Score: 1

      Curious, some of the biggest music fans I know didn't like any of U2's new ablums.

      You are right, and U2 is a great example of this... I do not know how many people I come across that are like, "Yeah, U2 was good, but everything after Joshua Tree is crap." I hear it so much, it is like it is the cool thing to say that!

    21. Re:not a rockstar by Anonymous Coward · · Score: 1, Insightful

      > A lot of people don't like anything that gets radio play, because that's the crap that people listen to

      no, its the crap that is
      a) played over and over (and over and over ad. nauseum)
      b) designed or written with the intent to appeal to the lowest common denominator, and hence played over and over.

      where you been for the last 60 or so years?

    22. Re:not a rockstar by cymbaliner · · Score: 1

      You know, those are my sentiments exactly. I've been messing about with music since I was 14, so about 8 years now. Never have I made a single dime from it, except once I won a talent show and got a $75 gift certificate to a local restaurant. But that's the whole thing about it - making money has never been a reason to play music for me. It's just such a blast to get together with your band or friends and play for people. I mean, it's really just loads of fun. Nothing but good feelings. And if I could make $30-40,000 a year doing that and that alone, I would be so happy. The quality of your profession and how much you enjoy it really matters more than how much money you're making. If you wake up in the morning loving your work and in turn, your life, the money doesn't really matter as long as you've got food and a place to sleep, and a decent-looking woman.

      --
      **Bob Dylan says: You never ask questions when God's on your side.
    23. Re:not a rockstar by jstrain · · Score: 1

      Off topic, but it is pretty cool to hear of another Therion fan. The day that is played on the radio is the day I listen to the radio again. Until then, my empeg keeps me happy.

      My wife and friends don't really like Therion at all, but I say even if you don't like it, at least it is something different.

    24. Re:not a rockstar by darcybrown · · Score: 1

      Some one forgot along the way that it's really about the music.

      Its all about image now.

    25. Re:not a rockstar by cymbaliner · · Score: 1

      That's probably because you DO know more than most people about music. Especially indicated by your casual name dropping. But a degree in theory and production, does it make you a better judge of good music? Does a degree in psychology make you a better judge of character?

      --
      **Bob Dylan says: You never ask questions when God's on your side.
    26. Re:not a rockstar by ComputerSlicer23 · · Score: 1
      Hmmm, I'm clever enough to know, that every 17 year old that has an opinion doesn't rate a musical genius able to differentiate between wonderful music, and not. If that makes me pretensious, I'll get over it. I'm also clever enough to recognize people refuse to like anything that is popular in pop culture because they have conformed, and it means they are doomed to grow up to be like their parents.

      That terrifies them, so no conforming for them. Nothing on the radio could be good, otherwise that means that you might have heard good music. They turn music into an obscurity contest. Well, "I heard this band once, if formed in my basement for 3 hours and broke up at the end of the jam session they made the best music ever". "Yeah well I heard this dinky little band over here that did this". It becomes a contest, and the really funny part is that music is completely subjective. Good music is completely subjective. Completely!

      It's the same behaviour I've seen out of people who attempt to map meanings onto poems. My favorite was the class that finally broke down and wrote to R. Frost requesting that he settle the meaning of a poem he wrote. They'd debated it for weeks in class, building up metaphors, allegories, hidden meanings, subtle puns, dualities, and paradoxes. You know what his response was. What I meant was this: (which was followed by a copy of the poem). I think people turn all forms of art into a contests of who can be the better beholder, instead of realizing that the beauty is in the eye of the beholder.

      There are a lot of extremely intelligent musically inclined people out there, and I respect their opinion. However, a lot of the people who pass judgement on popular music have never picked up an instrument, have never written music, have never played live in front of people, have never done anything that would give them any insight into what is and isn't good music.

      Kirby

  3. What's worse... by JohnG · · Score: 5, Funny

    Todays rock bands don't even get the supermodel girlfriends, they get goth chicks with piercing in 7 different places. And Heroine, Cocain and LSD aren't even socially acceptable among rock stars anymore! Bah!

    1. Re:What's worse... by Unordained · · Score: 3, Funny

      hmmm. some of those piercings could be in -good- places ... what's wrong with that again?

    2. Re: What's worse... by Anonymous Coward · · Score: 0

      Why so negative about the goth girlies? Most of them are cute, those I've met tended to be intelligent.

      What? Are you out exclusively chasing girls with big breasts who look like cheerleader-barbie? (shudder)

    3. Re: What's worse... by JohnG · · Score: 0, Offtopic

      Once again another case for a "just joking" tag on Slashdot. Actually, no I don't chase girls that with big breasts that look like cheerleader barbie, I prefer brunettes over blondes (and redheads over brunettes, putting blondes last) and am I firm beliver in the phrase "more than a handful is a waste" when refering to breast size.

    4. Re:What's worse... by JohnG · · Score: 4, Funny

      I don't like the taste of metal. ;-)

    5. Re:What's worse... by fobbman · · Score: 4, Funny

      At forty grand a year, do you REALLY think that they can afford a supermodel girlfriend and/or a heroin habit? Hell no! It's all they can do to afford the pierced skank and her antibiotics, and MAYBE a taste for Diet Rite soda.

    6. Re: What's worse... by BollocksToThis · · Score: 1

      and am I firm beliver in the phrase "more than a handful is a waste" when refering to breast size.

      I don't know how this got bastardized over time, but the correct phrase is in fact "more than a mouthful is wasted".

      --
      This sig is part of your complete breakfast.
    7. Re:What's worse... by Anonymous Coward · · Score: 1, Funny

      George W. Bush: Too stupid to know any better.

      I prefer:

      George W. Bush: Giving Dan Quayle a run for his money.

      We now return you to your regularly scheduled on-topic conversation.

    8. Re:What's worse... by Not+The+Real+Me · · Score: 1

      Most bands make big bucks touring.

      I was reading a posting a few days ago on a different internet board by someone who claimed to have booked the band Great White for one of their venues, not the one that burned up. They said that playing these small clubs, a band like Great White, earned $4000 to $5000 for one night. Most of the earnings was not from ticket sales, but from alcohol sales.

    9. Re:What's worse... by Master+of+Transhuman · · Score: 1

      they get goth chicks with piercing in 7 different places

      You mean like Christina?

      BTW, goth chicks have tits, you know... Some of them even have T AND A...

      --
      Richard Steven Hack - This sig is TOO GODDAMN SHORT TO DO ANYTHING USEFUL WITH! MORONS!
    10. Re: What's worse... by Anonymous Coward · · Score: 0

      But the only people who say that crap are the ones that don't get to wallow their whole head between breasts. It's just another form of denial.

    11. Re:What's worse... by nelsonal · · Score: 1

      Sorta, the band's money comes from the bar, and the bar's money comes from covers and alcohol sales. Most of the money does come from alcohol sales. Bar owners know that too high a cover will keep too many people out, and that their customers are more likely to stay and drink more, increaseing earnings if they paid a resonable cover to see a good band. Think about the price of drinks and the cover charge at any clubs around you, vs. the price of a concert for the same band.

      --
      Degaussing scares the bad magnetism out of the monitor and fills it with good karma.
    12. Re:What's worse... by Anonymous Coward · · Score: 0

      sounds like you should become a dj uinstead lsd coke herine its all good long as you can almost play some tunes.
      as far as the chicks...well youll be lucky to find one with only 7 piercings

    13. Re:What's worse... by CAIMLAS · · Score: 0, Offtopic

      I think he meant that she -does- like the taste of metal; that's good for you.

      --
      ~/ssh slashdot.org ssh: connect to host slashdot.org port 22: too many beers
    14. Re:What's worse... by Anonymous Coward · · Score: 0

      >Bar owners know that too high a cover will keep
      >too many people out

      Bar owners also know that drunk customers don't care what noise is bouncing off their ears, and, that even though they took in $12,500 tonight, the $1500 from the door, which somehow turns into $400 split between 4 guys in the band, will get a different band next week if they have a problem with it.

      Some towns are lucky enough to have a musician's union -- but you won't get a gig there. Other places, band pay to play, and time on stage goes to the highest bidder or the people with connections.

    15. Re: What's worse... by Moofie · · Score: 1

      Me, I'm an equal opportunity lecher.

      We like girls, all kinds of girls
      From Annie to Veronica...

      --
      Why yes, I AM a rocket scientist!
    16. Re:What's worse... by JPriest · · Score: 1

      It is? I think body piercing is trashy. I'm glad it's around though. It's like wearing a big "I'm trashy" stamp on the forehead. Saves time.

      --
      Saying Java is nice because it works on all OS's is like saying that anal sex is nice because it works on all genders.
    17. Re:What's worse... by Anonymous Coward · · Score: 0

      That's Heroin.

      alt.drugs.hard

    18. Re:What's worse... by Reziac · · Score: 1

      There's your problem! Remember, CDs are not edible, even if the band's name is "Sweet". :)

      --
      ~REZ~ #43301. Who'd fake being me anyway?
    19. Re:What's worse... by JohnG · · Score: 1

      Maybe for you, but I'd prefer to be addicted to Angelina Jolie dressed up like Lara Croft any day!

  4. Obligatory link by Anonymous Coward · · Score: 5, Interesting

    To the problem with music, an insightful insider's look on this exact same subject with more analysis and perhaps less solid figures.

    It is written by Steve Albini, who produced (besides a few bands you maybe might have heard of) a little no-name act called Nirvana. Everyone should read it. Of course, most people have, which is why i predict it will be linked at least three more times somewhere in this story discussion.

    1. Re:Obligatory link by Anonymous Coward · · Score: 0

      Argh. Albini is much more then that. He produced a bucket load of indie bands, runs his own label (Touch 'n Go), and fronted several bands, Big Black and PigFace among them.

      His figures are much, much more realistic then those in the Times article. By a long shot.

    2. Re:Obligatory link by SugoiMonkey · · Score: 1

      Man, this sux. Kinda reminds me of "The Jungle." Damn corporate pigs.

    3. Re:Obligatory link by astrosmash · · Score: 4, Interesting

      Also, check out the Mixerman Diaries, documenting the attempted recording of an L.A. "bidding-war" band. $2 Million advance; big name producer; dumb-ass drummer. Hilarious stuff.

      If you're at all curious about the recording process of a Major-label band, it's a must-read.

      --
      ENDUT! HOCH HECH!
    4. Re:Obligatory link by SamTheButcher · · Score: 3, Interesting
      Yeah, I heard of Nirvana. Albini produced them after Butch Vig catapulted their sound into the stratosphere of stardom.

      Funny, I was just talking with a friend last night about how great Albini is, but didn't do a whole lot for their sound on "In Utero". Butch Vig probably did little more than compress and punch it up.

      Albini's article is great, is spot-on with regards to figures, and is a wonderful treatise on the robbery of the music industry, but let's not seemingly portray him as the reason Nirvana got big.

    5. Re:Obligatory link by yukster · · Score: 1

      Just as a point of accuracy: Albini does not run Touch & Go. He put out some records on Touch & Go, and has said "If anyone can show me a better label than Touch & Go, I'll suck their dick." But Corey Rusk is the main man at T&G. Albini's plenty busy recording bands, figuring out new ways to mutilate a guitar, collecting rare russian mics, offering profound and cynical insight into the rock industry and petting his pussy. Oh, and he worked on the first Pigface album, but hasn't had much to do with them since. His main bands have been: Big Black, Rapeman (one of the greatest bands ever) and Shellac.

    6. Re:Obligatory link by Anonymous Coward · · Score: 2, Interesting

      If you think improving Nirvana's sound is the only way Albini could have possibly helped them, you've got a lot to learn about the music industry. That's probably the *least effective* thing he could have done to help them.

    7. Re:Obligatory link by ckedge · · Score: 1

      My God is that an insantely expensive amount of crap to go through just to record a song.

      I won't cry one bit if the entire "industry" goes under - stuff made by 17 year old kids on their computers is a hell of a lot more economical than all this high-fallutin crap.

    8. Re:Obligatory link by Anonymous Coward · · Score: 0

      Albini's article is great, is spot-on with regards to figures, and is a wonderful treatise on the robbery of the music industry, but let's not seemingly portray him as the reason Nirvana got big.

      Okay, what, and you think that if i had introduced Albini as "The producer who so pristinely captured the unique sound of Slint on tape" or "Man or Astro-man's recording engineer", anyone on Slashdot would have actually recognized what that meant?

      I was going for brevity. Sorry. *shrugs*

      --AC #5365882

    9. Re:Obligatory link by limekiller4 · · Score: 4, Informative

      This is one of the best breakdowns I have ever seen and it is the one that I point all of my friends to when they ask (along with Salon's Courney Love Does The Math).

      But I don't understand why everyone gets so bent about Hillary Rosen and focuses all their attention on her. She's just a prostitute. The industry will ALWAYS have a prostitute. It almost seems like the Slashdot et al crowd is almost in collusion with the RIAA in this blatant misdirection. Is she scum? Yeah. But who cares? So is Valenti but he's a salesman, not the guy driving the vehicle.

      It isn't anything you said, I'm just ranting.

      --
      My .02,
      Limekiller
    10. Re:Obligatory link by Thing+1 · · Score: 1, Funny
      --
      I feel fantastic, and I'm still alive.
    11. Re:Obligatory link by Anonymous Coward · · Score: 0

      You could have introduced him as "the producer of the pixies' best album". That would have been recognizable to most slashdotters and been more representatitive of his work.

    12. Re:Obligatory link by Lysol · · Score: 1

      To further this, Albini, actually, sounds pretty much the same across all the recordings he does. Not necessairly a bad thing at all since most of the people that wanna work with him want that sound.

      Ya know, kinda tinty guitars; gated room drums; not a really fat, low-end bass - kinda bright and punchy. I mean, there's a shit load of bands he's done. Prob one of my favs was his stint with Rapeman. That had some pretty sick changes in it.

      Anyway, his piece is pretty straight up. Unless you're some hugo mtv cribs regular in control of your entire destiny (incl gold teef) then you probably don't make squat on a major.

      However, I've known plenty of indie bands that toured and had a great time. I mean, so, you earn as much as you would working in the service industry. But, you get to cruise around in a small, stinky van from city to city, play gigs that you hope people will show up to, get piss drunk on the cheapest ass shit you can find (since the bar prob only gives each band memeber one - *if* they're lucky), and then get up the next morning and have whoever is least hungover drive for another 8-10 hours.

      Ahhh, memories....

    13. Re:Obligatory link by rograndom · · Score: 2, Informative

      Actually it was Andy Wallace (Slayer, Jeff Buckly, Faith No More, System of a Down (recently)) who mixed Nirvana's Nevermind that made it the radio-friend unit shifter that it became. If you ever hear Vig's mixes of Nevermind or the demos he did before that were supposted to be Nirvana's second Sub Pop album you'll hear a noticable difference. They were, to put it mildly, a little rough. Vig might have been in a little over his head at that point in his career.

    14. Re:Obligatory link by SamTheButcher · · Score: 1
      We're all right about Steve Albini. Point well taken about brevity. And doesn't he hate the term "producer"? Whoever mentioned him as "recording engineer" is more to the point. Lysol makes a good point above about the "Albini Sound".

      And mostly, as producer, I think of someone in charge of getting the most out of a band and performance. Albini most likely stays away from all that.

      But rograndom especially correct, that it was most likely Andy Wallace's mix that helped the sound. Kind of like Jerry Finn's role with Blink 182. The songs are from the artist, but it's all in the mix, as they say.

      And for the first AC that replied to my post, what the hell is your comment supposed to mean? I know plenty about the "music industry", but what else was he supposed to do for Nirvana? Save Kurt from drugs? From Courtney? I'm not privvy to the inner workings of Nirvana, but his best bet would've been to set up the mic's, get in the booth, let it roll and stay out of the way.

    15. Re:Obligatory link by Deagol · · Score: 4, Interesting
      But I don't understand why everyone gets so bent about Hillary Rosen and focuses all their attention on her.

      We despise these figure heads because they actually alter laws to favor the industry. Did you ever read the DeCSS depositions of Jack Valenti? They're a funny, if not scary, read. See them on 2600.com's website. I recall one place where good old Jack was being questioned by Corley's counsel. He was asking him all kinds of questions about the industry, and the opposing lawyer kept objecting, stating that Jack wasn't an expert witness and couldn't answer the questions. Finally, Corely's lawyer spouted off something that I found very telling (paraphrased): "You're telling me that this guy, who testifies before Congress and lobbies to change the laws, isn't an expert in these matters?!?"

      The point is, Joe Beancounter from the RIAA or the MPAA doesn't get the publicity shots shaking Senator Hatch's hand (Orin Hatch, I believe, is pretty pro-industry in these matters, in spite of the appearance of his "Napster Hearings" some years ago). It's these hi-profile weenies (Hilary and Jack) who affect legislation.

      That is why we despise these people so much.

    16. Re:Obligatory link by pyite · · Score: 1

      I read an Albini interview in some book by The Onion and he spoke of he and Nirvana not really being right for each other. He is a great guy though. He mentions in the interview I read he'll charge a small time band $500 to do a whole album.

      --

      "Nature doesn't care how smart you are. You can still be wrong." - Richard Feynman

    17. Re:Obligatory link by limekiller4 · · Score: 1

      Yeah, I read the transcript. The part that stuck out in my mind was when Vallenti stated that fair use was preserved under the DMCA and he was asked (paraphrased) "how is fair use protected under the DMCA?" IIRC, he couldn't answer.

      Deagol writes:
      "That is why we despise these people so much."

      I didn't mean to imply that they shouldn't be hated. I'm just saying that time spent on them is wasted. They're figureheads. They're sort of like the street-corner crack dealer. You can be as pissed as you want but so long as the job pays $100k/yr to shill, somebody is going to shill.

      Hate 'em. Just don't fight 'em. Because they're not the ones pulling the strings. You can't win that fight because you're punching a ghost.

      --
      My .02,
      Limekiller
    18. Re:Obligatory link by Anonymous Coward · · Score: 0

      Of course, Kurt Cobain hated Steve Albini, and regretted working with him on Heartshaped-box. Someone forgot to mention that part.

    19. Re:Obligatory link by Anonymous Coward · · Score: 0

      Sorry - I meant In Utero, not Heartshaped box.

    20. Re:Obligatory link by Anonymous Coward · · Score: 0
      OK, fine. But now consider the trouble over at Apple. Apple is on very shakey ground financially. Frankly, many prominent industry analysts have crunched the numbers, concluding that Apple's outlook is bleak indeed.

      In Apple's latest numbers released in January for its fiscal first quarter of 2003, revenue fell from a year earlier and all of the company's major computer lines saw diminished numbers. PowerMac sales were down 20%, while iBook sales fell 8%.

      At the same time Apple's sales were falling, PC sales rose, though just slightly, according to figures from IDC released last month.

      The last time Apple was in this state, it brought back co-founder Steve Jobs to fix its issues. He fostered the development of the iMac and secured a US$150-million investment from Microsoft. But there aren't any new iMacs in Apple's future and Microsoft, bolstered by its victory over the U.S. Department of Justice, is clearly not going to help the beleaguered computer maker this time.

      So what have you got left? Apple is a company that controls around 3% of the computer market, has recently undergone a restructuring and is slowly fading into nothingness. Software makers don't even have Mac users on their radar and it's not like Apple can bring Mr. Jobs back to right the ship this time -- he's already there.

      Stick a fork in 'em -- this Apple is cooked.

    21. Re:Obligatory link by nihilogos · · Score: 1

      I get the impression Albini concentrates on making the recording a faithful reproduction of what the band sounds like live. Or would sound like live if you had a good spot at a good venue with good acoustics.

      Nevermind is my least favourite Nirvana album because after a while it just sounds a bit dull.

      --
      :wq
    22. Re:Obligatory link by Anonymous Coward · · Score: 1, Insightful

      >Hilarious stuff.

      Bullshit though. Mixerman is giving one side of a story. I'm up to day 5 of the diary, and all I notice is that he does not cop to being a bureaucrat, essentially a PHB.

      Aside from the opinion of the drummer's ability, OK, I can accept that the drummer is a complete boob. But when they finally got the room setup (lava lamps? tapestries? That stuff should develop organically over the course of a long stint in the office, not at the beginning as a costume! Get real!) so the board is trimmed, the band is here, everybody is motivated, and he won't roll the tape and let the band record for a few hours because the freakin "Producer" won't show? Bullshit.

      Any soundman who calls Protools "Alsihad" is being biased. Mixerman is just an asshole who wouldn't do any better in any other situation with management.

    23. Re:Obligatory link by viperblades · · Score: 1

      that is one of the funniest links i have seen on slashdot

    24. Re:Obligatory link by Blue+Stone · · Score: 1

      Let's not forget the Pixies' Surfer Rosa.

      --
      Corporation, n. An ingenious device for obtaining individual profit without individual responsibility. - Ambrose Bierce
    25. Re:Obligatory link by Anonymous Coward · · Score: 0

      I agree, in part. I read through about half of the entries and had to put it down for a bit. It seems pretty apparent that Mixerman as much of the problem as the whole rest of the industry. Over-pampered and full of elitist attitudes.

    26. Re:Obligatory link by Dyolf+Knip · · Score: 1
      Better yet was when Valenti was asked, "What does 2600 do?" and all he knew was that they make caricature t-shirts of him. The only thing this guy is even remotely competent at is schmoozing politicians. That any kind of national policy is made using his advice is simply terrifying.

      Did you see his debate with Lessig a few years ago? That was a real trip. I don't understand why Jack's lawyers let him actually talk to the public; they have to know that anyone not actively being paid to enjoy his company will despise him.

      --
      Dyolf Knip
  5. Who's Fault? by Metallic+Matty · · Score: 4, Insightful

    Really, who's to blame here? Is the lack of income by the individual the result of the large share the recording label takes?

    No one said the music business was easy either, and we all know the success stories are certainly the far and away cases.

    1. Re:Who's Fault? by JohnG · · Score: 1

      The problem is the music industry used money made from successful acts to make up for the losses took on unsuccesful acts. I'm sure they don't just take Britney's million dollars and give to little-known-band #5, but rather, they probably give less of a cut to both. It's probably not really fair to either of them that way, but other than taking the loss on unsuccessful bands it's probably the only way. Maybe one day the technology that the RIAA refuses to embrace will help artists stand on their own and either fail or become rich individually, but I still think there will need to be record labels for marketing purposes.

    2. Re:Who's Fault? by Anonymous Coward · · Score: 0
      Really, who's to blame here?

      Must be the band's fault for signing the contracts.

      Is the lack of income by the individual the result of the large share the recording label takes?

      As opposed to? Bands don't get paid directly by retailers.

      No one said the music business was easy either, and we all know the success stories are certainly the far and away cases.

      Assuming you meant successes were 'far and away the rare case', I would call it a bad business process. If Heinz, General Motors or Microsoft had an RIAA member's batting average they wouldn't exist. The RIAA model abuses all but the very rare artist with the power to push back (Garth Brooks for example) or manage their acts from end to end in order to support inefficient business practices.

    3. Re:Who's Fault? by BWJones · · Score: 1

      Really, who's to blame here? Is the lack of income by the individual the result of the large share the recording label takes?

      Well, yeah. For instance the record company lawyers create contracts that make it very difficult for the individual artist(s) to make a decent living. Contracts that take all of the costs for touring out of the total, that take recording costs out of the total, that take distribution and advertising costs out of the total, etc...etc...etc... essentially taking their profits off of the top and letting the artist pay all of the costs. Whatever is left over is what the artist gets paid, and sometimes it works out that the artist actually owes the studio money.

      All of this results in the studio maintaining total control of the artist leaving us with engineered bands and the real talent (artists like Jen Trynin get royally screwed by the record labels who sometimes even own your name. (The artist formally know as...)

      --
      Visit Jonesblog and say hello.
    4. Re:Who's Fault? by Compuser · · Score: 1

      The blame rests squarely on the labels. IMHO. IMNSHO.
      These guys take acts they think will make it big,
      then take their cut for the business/legal/sales
      stuff. And as a customer, I would appreciate if
      someone picked the best there is and filtered out
      crap. I would be willing to pay for that service.
      That's the fair business model for music labels.
      But they use their monopoly (ok collusion) to set
      their "cut" to be nearly everything. So for artists
      the failure is indeed the label monopoly. For the
      consumers, the failure is that the labels don't
      filter out crap. They seem to be willing to pick
      any sh*t that's similar to what sells already and
      promote that. Commercial noise goes up, quality
      and innovation goes down. This lack of taste and
      artistic appreciation fails the artists too, since
      the labels _have_ to get an even bigger cut
      because so many of their acts fail miserably.
      And this artistic ineptness comes from the fact
      that the same guys run the show year in, year out.
      Any industry will run out of ideas without fresh blood.
      So the failure is strictly that of the labels, no
      matter how you look at it.

    5. Re:Who's Fault? by Anonymous Coward · · Score: 0

      No, I think that what's going on is that there is a small group of unsuccessful acts, a large group of reasonably successful acts and a small group of hugely successful acts.

      The losses caused by the unsuccessful ones are insignificant. The reasonably successful acts are profitable to the labels, but the musicians themselves make very little. The labels use most of their profits and effort to promote the hugely successful acts, including subsidizing their promotion through profits actually made from the reasonably successful acts.

      In a sense, the labels "control success" by how much promotion they put behind an act. And generally, all the promotion focuses on manufactured acts which are over-promoted into becoming "guaranteed successes", instead of promoting some of the acts that can bring in reasonable success on their own.

  6. Hmmm... by KDan · · Score: 5, Funny

    I wonder when they'll get it all fine tuned to the point where successful bands actually go bankrupt from attempting to make and sell an album :-P

    Daniel

    --
    Carpe Diem
    1. Re:Hmmm... by Anonymous Coward · · Score: 0

      Um, musicians do go bankrupt due to record contracts. Even big sellers such as TLC have gone bankrupt.

    2. Re:Hmmm... by Anonymous Coward · · Score: 0

      They have actually, ever heard of TLC? Millions of records sold, had to declare bankruptcy?

    3. Re:Hmmm... by gpinzone · · Score: 4, Informative
    4. Re:Hmmm... by egoff · · Score: 1

      Sounds like sharecropping...

    5. Re:Hmmm... by Alsee · · Score: 1

      The article you linked to says:

      The overall solution for avoiding the pitfalls posed by the threat of a bankruptcy filing by a prominent artist is painfully obvious for the record labels: offer the artist fairer contract terms.

      I dissagree. The "obvious" solution is for record labels to demand that congress fix the problem. Making recording contracts exempt from bankruptcy relief is the obvious* and perfect solution.

      *Obvious and perfect from the recording industry's point of view. Congress will come to see it as obvious and perfect after sufficient campaign contributions.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    6. Re:Hmmm... by Dyolf+Knip · · Score: 1
      I wonder when they'll get it all fine tuned to the point where successful bands actually go bankrupt from attempting to make and sell an album

      That's easy enough to do. What you're looking for is a band whose sales go nowhere but up and yet they still make no money from it. Any takers?

      --
      Dyolf Knip
  7. Negotiating Position by Boss,+Pointy+Haired · · Score: 4, Interesting

    Disclaimer, I don't really understand the pop industry so this is probably obvious, but...

    Why is the negotiating position of these bands so weak that they end up with such a shitty deal?

    1. Re:Negotiating Position by Trollificus · · Score: 5, Insightful
      The Recording industry has enjoyed the privilege of being the only major point of production/marketting/distribution, etc.
      It costs quite a bit to make an album, and even more to market it. Most garage bands don't have that kind of cash laying around. So they need someone to finance it.
      It's like going to a loan shark and getting a deal with 80% interest.
      A band can either take the shitty deal, or go back to playing in their garage where no one will ever hear of them.

      --

      "People should be allowed to keep midgets as pets."
      - Gov. Jesse Ventura

    2. Re:Negotiating Position by Pxtl · · Score: 0, Offtopic

      Mod this up - its a good serious non-troll comment from a troll account.

    3. Re:Negotiating Position by giminy · · Score: 4, Insightful

      Usually when you're small, you want any record deal you can take. Usually you get a 7-album contract or something ridiculous, and you get the same money for each album. The money sounds good if you've never had a record deal before, but if your first albums do really well, tough luck renegotiating.

      And then of course if you decide to back out of the contract, the company owns the copyright to your music, making it more difficult to find a new label (because you can't put out any of your old music). Besides leaving your label at that point means other labels probably won't want to touch you because _they_ won't make as much money from you, since you'll know what you're really worth. Bummer huh?

      --
      The Right Reverend K. Reid Wightman,
    4. Re:Negotiating Position by jandrese · · Score: 4, Insightful

      Their position is weak because there are so many bands out there that want to be signed. I have a feeling that any band that tries to negotiate a better contract is just kicked to the curb and the next band is signed instead. It doesn't really matter to the record company who they sign, as long as they look good in a tight shirt on a billboard and don't play any music that might be banned in any of Clear Channel's areas.

      There are of course some obscure bands signed now and then if they're willing to accept a contract bad enough (because it's the Record company that's taking the risk you see). I suspect that even those hundreds of records the company "loses money" on are actually profitable (or at least break even) with their fancy accounting practices, but why bother signing a bunch of good sounding bands (and taking up valuble shelf space), when you can sign a few good looking bands and mass market the heck out of them for a few years, which makes megabucks (although less than it used to) for a lot less effort?

      --

      I read the internet for the articles.
    5. Re:Negotiating Position by Hatter · · Score: 4, Insightful

      My guess would be most bands sign the first deal they can get from a record company. They've been waiting for their big break, then it comes and the label rep assures them it's the "standard" deal and visions of rock stardom dance in their head. These bands don't feel they're in a position to negotiate, they're still "undiscovered" and to have clout you're going to have to have made a name for yourself already..

      Artists are always being taken advantage of and there are some great examples in the most recent issue of Rolling Stone. "Why do hungry young artists keep signing these one-sided deals? Because they're too young and too green to have any idea how deep they can slide into debt. Because they don't consider the long-term complications of signing their lives away to a lard-assed corporation that will be perfectly happy to write them off as a bad debt at tax time. And because the label has no incentive to do anything on the cheap, sine the artist pays for everything. The dice are loaded. The deck is stacked. And the house never, ever loses." Good article in general, worth picking up.

    6. Re:Negotiating Position by Mononoke · · Score: 2, Insightful
      Why is the negotiating position of these bands so weak that they end up with such a shitty deal?
      1. Because they are living in their car/van/truck.
      2. Because they are playing local clubs for $200/night (divided amongst all the band members, crew, and music store where they bought the gear on credit.)
      3. Because they see nothing but dollar signs when some guy in a suit comes to see them play.
      4. Because they'll do anything to get away from that day job at Burger King.
      5. Because they don't know that a lawyer's advice can be a valuable thing sometimes.
      If someone's waving the temptation of fame&fortune in front of you, would you be able to think straight?

      --
      NetInfo connection failed for server 127.0.0.1/local
    7. Re:Negotiating Position by Anonymous Coward · · Score: 1, Insightful

      Plus you don't want ot be labelled 'difficult' and risk being blacklisted. Not until you have the sales under your belt that is.

    8. Re:Negotiating Position by Kevin+Stevens · · Score: 2, Interesting

      its not really that their positions are that weak... Making a record requires studio time, which is expensive- good studios for albums cost hundreds of thousands of dollars, producers cost alot too- usually a flat fee along with a % of the proceeds, marketing is in the million(s) dollar range (see previous articles on the bribery system to get radio airplay), Cover art, distribution costs, the cost of physical cd production, Release parties cost money, and those figures probably dont include the advance the record company gives them. And while the band can go and perform to make its money, all of the label's revenue comes from the CD. Also, these numbers are a bit skewed since they are probably just past the 'break even' point. After that point, the artists take home more money for each CD. Also factor in that the artists can make money off of royalties. It should be said though that bands make money touring, not really by selling CD's. There have been several articles written about this, some posted on slashdot. In another application of the 80/20 rule, the record label's make money off of 20% of their artists, while they lose money on the other 80%. Of course they make mega-bucks off of their top acts though. I wouldnt cry a river for either side though- label's do go under or merge w/ others frequently enough, and aspiring stars know what they are getting into.

    9. Re: Negotiating Position by Black+Parrot · · Score: 1


      > Their position is weak because there are so many bands out there that want to be signed. I have a feeling that any band that tries to negotiate a better contract is just kicked to the curb and the next band is signed instead.

      Which goes a long way toward explaining the shite you see in the record stores these days.

      --
      Sheesh, evil *and* a jerk. -- Jade
    10. Re:Negotiating Position by angle_slam · · Score: 1
      And then of course if you decide to back out of the contract, the company owns the copyright to your music, making it more difficult to find a new label (because you can't put out any of your old music).

      While the record label owns the sound recording copyright (meaning you can't take old songs and merely re-release them), some publishing company owns the copyright to the music itself. With the compulsory license, you can always re-record your own, or anyone else's music.

    11. Re:Negotiating Position by NineNine · · Score: 1

      Artists are always being taken advantage of and there are some great examples in the most recent issue of Rolling Stone. "Why do hungry young artists keep signing these one-sided deals? Because they're too young and too green to have any idea how deep they can slide into debt. Because they don't consider the long-term complications of signing their lives away to a lard-assed corporation that will be perfectly happy to write them off as a bad debt at tax time.

      So, I don't get it... am I supposed to feel sorry for these same short-sighted, stupid artists? Also, is there a way that record companies can recoup their costs from the artists if the records don't sell, or if the artists end up producing shit? From my point of view, the record companies havea lot more riding on a contract (namely, lots and lots of cash). "I didn't know" isn't a legal defense. That's what lawyers are for.

    12. Re:Negotiating Position by anthony_dipierro · · Score: 1

      Not just a loan, also insurance. The band got $100,000 advance before they sold a single album. Had they failed, they still would have been able to keep the advance.

    13. Re:Negotiating Position by astrashe · · Score: 2, Insightful

      It's because the labels control distribution.

      If the band doesn't want to sign, the labels can always find someone else to push through the pipeline. If the labels aren't interested (and the big ones have an oligarchy), the band doesn't have many options.

      Or at least they didn't. That's why online music distribution is so scary. Piracy is a real threat to the music industry; but so is a distribution system that gives everyone equal access.

      I feel that the focus on piracy -- and people's insistence that it's ok -- have diverted attention from the other issue, open access to distribution. We need a system that lets musicians sell their music to global audiences without middlemen taking out substantial chunks.

      If someone wants to make a deal with a label because the label can hook them up with producers or songwriters, or because the label can promote them, that's fine. But they shouldn't be coerced into these deals just to reach the market place.

      It's not just the labels that do this. If you want to sell your house, you have to pay a broker to put it in the MLS -- why isn't there a web site that charges you $4.95 to list the house for 6 months? People tried to set those sites up, and they failed in the face of opposition from large real estate brokers, who fought to keep their inventories off of them. People who have set up tollbooths fight pretty hard to hold on to them.

    14. Re:Negotiating Position by Hatter · · Score: 3, Interesting

      So, I don't get it... am I supposed to feel sorry for these same short-sighted, stupid artists? Also, is there a way that record companies can recoup their costs from the artists if the records don't sell, or if the artists end up producing shit? From my point of view, the record companies havea lot more riding on a contract (namely, lots and lots of cash). "I didn't know" isn't a legal defense. That's what lawyers are for.

      That's the point: they don't have as much money riding on these artists as you think. The costs are pushed onto the artists. All the labels do is advance the money for the recording, music video production, equipment, tour expenses, promotion, etc. and in return pay the artists pennies on the dollar, often divided 3, 4, more ways between the members of the group.

    15. Re:Negotiating Position by Proc6 · · Score: 1
      If that's the case then I guess the $40,000 a year a piece, though only a fraction of the sales volume of their music, is a lot better than where they were right?

      Heh, not saying it's right, but I'm saying even in it's current evil model the label got them closer to where they wanted to be. It's a decision the band made.

      I agree with previous poster that said music is art, making music isn't about the money. There's a lot of people who get together in their spare time and play instruments or sing. It's a form of art. Should you be automatically given the right to make money doing it, whether it be $200 a night, $200,000 a year, or $2,000,000 a song? I think not. All everyone is arguing over is the right way to pimp out art.

      --

      I'm Rick James with mod points biatch!

    16. Re:Negotiating Position by alphaseven · · Score: 2, Interesting
      Why is the negotiating position of these bands so weak that they end up with such a shitty deal?

      It might piss people off to hear this, but my guess is because musicians have shitty union representation.

      For example, most actors are desperate for exposure and most movies don't make profits, but when that kid that played Harry Potter agreed to star in the movies for a relatively small sum, the British actors union stepped in and said the studio had to pay him millions, link.

    17. Re:Negotiating Position by joshsisk · · Score: 1

      They still would have owed the money, however. So it's a loan. Many bands break up because they can't afford to pay back the labels this money, and the labels won't let them out of their ontract until they do, but at the same time the label will not invest more money in having the band release a new album. I know quite a few people who were in promising bands that broke up for this reason.

    18. Re:Negotiating Position by afidel · · Score: 4, Interesting

      Actually recording doesn't have to cost a fortune. For an example Creed recorded their first album for $6,000 and it had the most #1 hits of any debut album ever. Marketing can be expensive, but really isn't necessary if the music is actually good. Sure diferentiating the Britney Spear's of the music world from the 5 million other pop acts costs money because it's expensive to manipulate people through advertising, you have to wear them down.

      --
      There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
    19. Re:Negotiating Position by NineNine · · Score: 1

      Well, then, if most of the costs are pushed onto the musicians, then why don't the musicians promote, market and hadle everything themselves? I don't get it.

    20. Re:Negotiating Position by anthony_dipierro · · Score: 1

      They still would have owed the money, however. So it's a loan.

      They only would have owed the money as a draw against future payments. If the label can demand full payment then it's a loan, but they generally can't, so it's not, it's essentially insurance.

    21. Re:Negotiating Position by colmore · · Score: 3, Informative

      It has always been somewhat true that success in the music industry was based on image, not quality of music. Since the dawn of MTV and the half-million dollar music video this has become more true. Since the deregulation of radio in 1996, and the return of payola this has far more true. In short, almost any band can become popular with major label support, and almost no band can become popular without it. (Notice that the quality of the "alt" rock on the radio saw a sharp decline starting somewhere around 1996/1997, thank you Bill Clinton and Congress)

      The members of the RIAA have virtually identical business practices so if you don't like the deal offered by say Capitol, you can't go to Sony and expect much better. And you can't hold out on Capitol, because they don't really need you.

      Combine this with the fact that the music industry has been marketing toward a younger and younger audience (remember when the tastes of 20-somethings determined popularity? How many people over 20 can name more than 2 rock acts that had a #1 hit in the past year?). A young audience doesn't have a lot of history of listening to music. You can repackage an old formula (Nirvana, Pearl Jam, Green Day) and sell it to 15 year olds; they'll never know the difference.

      Indie acts can take a far larger cut of record sales (though indie labels can frequently be desperate enough for cash to be just as underhanded as the majors, and there's always the danger that your label will go bankrupt), and indie acts take a FAR larger cut of touring and merchandise. So someone signed to Merge or Matador (2 fairly well known indie labels) selling 50,000 albums a year would probably make as much as someone on Sony selling 500,000. How many indie acts sell 50,000 albums per year? Not many.

      So why not self-release? Well it takes a _huge_ amount of starting capitol. Say you want to print 5000 albums, about a minimum if you want to be stocked in stores just in your home state. At that quantity, CDs cost about $3 per, so that's $15,000. Not a small amount of money for your average musician. Of course, with no label, you get no promotions and no automatic opening gigs with more promanent acts, so selling those 5000 CDs to pay back mom & dad that $15,000 is quite a trick.

      Can it be done? Yes. Is it worth it? Probably not. These days I can't imagine why anyone would sign to a major label unless they really wanted to see themselves on MTV. From a financial and creative standpoint, it makes very little sense.

      --
      In Capitalist America, bank robs you!
    22. Re:Negotiating Position by Alsee · · Score: 1

      Many other posts have pointed ot the supply of prosective artists exceedes the demand for new artists, but I'm supprised no one else has mentioned another reason for these obscene contracts - the collusion between the major labels. The recording industry has formed a cartel and agreed not compete with each other in terms of artists contracts. They all use nearly identical contracts.

      So supply and demand naturally weighs against new artists, and restraint of competition presses the labels' advantage to opressive levels.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    23. Re:Negotiating Position by arkanes · · Score: 1

      You can't. It's a closed industry. Sure, you can scrape together some money and maybe get a loan and produce an album. Maybe if you know someone in the industry, you can even get a real producer. Now you've got this great album, and you aren't beholden to a record company, and it's great. So now what? You can't sell it at any of the major retail outlets, because you won't even get in the door to talk to distribution people. You can't make get it played on 95% of the commercial radio in the country because ClearChannel is part of the industry and isn't interested in unsigned bands. You can't get on MTV for the same reason. Can't advertise in Spin or Rolling Stone. So you're pretty much destined to, at best, mid-level success in small areas.
      There's nothing really wrong with that, and you can make money doing it, but people want the big time, and you just won't get it unless you play the game, because the industry holds all the cards. The artist is the least important and most replacable part of the modern music industry. Artists have to market themselves to labels, rather than the other way around. That's a sucky sort of industry, since it's supposed to be about music, and it doesn't have to be that way - everyon CAN make money, without needing to totally fuck the people who actually play.

    24. Re:Negotiating Position by TopShelf · · Score: 1

      The record label provides the marketing push that a band needs to get heard over the airwaves. It takes a major organization to coordinate a campaign across the various markets, and of course there are a zillion bands that all want a piece of the action...

      --
      Stop by my site where I write about ERP systems & more
    25. Re:Negotiating Position by SN74S181 · · Score: 1
      Why is the negotiating position of these bands so weak that they end up with such a shitty deal?


      Just about any idiot (okay, maybe 10% of the population) can make music as good as the average pop music artists. There's no shortage of talent, and 'national stars' are the result of promotion and packaging. There's a myth of 'great talent' that largely isn't the case, and the music studios know this. So they can get rid of anybody who gets uppity and demands much, because the supply of 'stars' is huge.

      It's similar in a way to how dishwashers and waitresses don't get much.
    26. Re:Negotiating Position by SN74S181 · · Score: 1

      That's why online music distribution is so scary. Piracy is a real threat to the music industry; but so is a distribution system that gives everyone equal access.

      One thing I have never had explained to me is how small artists, who use the Web and internet distribution methods to get their music out and listened to, make any money at it. Nobody is making money from music distributed online. Are these artists going to put up banner ads on a website and get their pennies that way?

      So let's hear all the hypothetical ways that they're supposed to earn money.

    27. Re:Negotiating Position by dubiousmike · · Score: 1

      It is actually becuase radio stations will not play some band with any sort of regularity if you aren't from a a label.. People think that payolla isn't alive and well and they are fooling themselves.

      If you can't get on the radio (and you aren't the .001% exception like Metalica) you can not be sucessful (in the top 40 sense). The radio industry is more crooked than the record industry, believe me.

    28. Re:Negotiating Position by Weirsbaski · · Score: 1

      Actually recording doesn't have to cost a fortune. For an example Creed recorded their first album for $6,000 and it had the most #1 hits of any debut album ever. Marketing can be expensive, but really isn't necessary if the music is actually good.

      The $6000 was for what exactly (studio time? producing?)
      How much did they pay the label for marketing?
      How many future albums did they promise the label, or will they likely be unable to negotiate a deal again?
      Did they net over $40,400 each, for recording one of the most popular debut albums ever?

      --

      I am not a sig.
    29. Re:Negotiating Position by Craig+Nagy · · Score: 2, Interesting

      Summary: Supply and Demand

      The supply of decent, marketable artists is sky high...thus the reward given to artists is lowered. How many people just in Slashdot can play guitar? Straight forward economic equillibrium. The reason people download all of these songs is because they (subconciously) recognize that musical talent is around every block - it's just that there's finally a way to circumvent the extraordinary prices set by record labels.

    30. Re:Negotiating Position by stuartkahler · · Score: 1

      Clear Channel owns around 80% of the radio stations in the USA. Through middlemen, the RIAA pays them to play only a certain set of songs of their choice. No independent songs are allowed to be played. So if you don't sign with a RIAA company, you guarantee that you will never be played on more than 20% of the stations in the USA, aside from the likelyhood that less than 20% of the 20% minority (4% aggregate) would even play the style of music that you perform.

      This is all assuming that the group had the time and money to record a professional sounding album on their own. Most groups barely have the money for enough equipment to do a gig at their friend's frat party. Pressing a few thousand copies of their debut CD can easily break them before they even get noticed in their home town.

    31. Re:Negotiating Position by Savatte · · Score: 2, Funny

      Marketing can be expensive, but really isn't necessary if the music is actually good.

      and yet you are talking about Creed? I'm not sure I follow your logic.

    32. Re:Negotiating Position by Odinson · · Score: 1

      Which all comes down to the FCC mismanagement.

      Bastards.

      No two radio/tv stations have any business have one share of stake in each other. Anything else is a scam.

      Do not buy albums from new bands not promoting strictly on the Internet. At least match purchases from clearchannel bands with donations to the EFF.

    33. Re:Negotiating Position by Anonymous Coward · · Score: 0

      Creed recorded their first album for $6,000

      It's not hard to record and promote the same damn song over and over again.

    34. Re:Negotiating Position by joshsisk · · Score: 1

      They only would have owed the money as a draw against future payments. If the label can demand full payment then it's a loan, but they generally can't, so it's not, it's essentially insurance.

      Actually, it's an advance - but if you are bending the definition of "insurance" enough to consider the advance a label pays a band to qualify, then you can bend the definition of "loan" to fit even easier.

      In insurance, I pay someone now to assume my monetary risk later. In an advance, the label pays the band now, and the label is the one taking the monetary risk, and that money is supossed to be repaid later. How is that insurance? Sounds a LOT more like a loan to me. There is no transferral of risk taking place, which is the key element of insurance - you are paying someone to take on your future risk.

    35. Re:Negotiating Position by anthony_dipierro · · Score: 1

      Actually, it's an advance - but if you are bending the definition of "insurance" enough to consider the advance a label pays a band to qualify, then you can bend the definition of "loan" to fit even easier.

      In case it's not abundantly obvious, I disagree.

      In insurance, I pay someone now to assume my monetary risk later.

      What about PMI (mortgage insurance)? You pay later to get a mortgage now.

      In an advance, the label pays the band now, and the label is the one taking the monetary risk, and that money is supossed to be repaid later.

      Actually the money is not required to be repaid later, it is drawn against future earnings.

      How is that insurance? Sounds a LOT more like a loan to me. There is no transferral of risk taking place, which is the key element of insurance - you are paying someone to take on your future risk.

      There is absolutely a transferral of risk. The risk that the CD will bomb.

    36. Re:Negotiating Position by jandrese · · Score: 1

      $3 per CD? That's highway robbery. You can burn CDrs for $.10 each plus maybe $.25 for the cases, and 5000 of them would only take a few weeks at most for someone with a few CDr drives and nothing better to do (your average broke band member). Label art would be tough, but we're talking about tiny indy acts here, not big commercial acts. With time and materials you'd probably get each CD for about $1, which is a considerable savings for broke band members.

      --

      I read the internet for the articles.
    37. Re:Negotiating Position by Anonymous Coward · · Score: 1, Informative

      To show you just how desperate musicians are: a pretty big county label in Texas use to send their agents to nightclubs, bars, etc ... and would literally sign everyone, any band they could get their hands on. The contract read basically the label owned the songs, and rights, and even the performers names (in case the name of the band changed) and in return the band got a 4 year deal (with no money) but did get 20 hours of recording time paid for by the label (at the labels own studio, between midnight and 8:00am). The label did nothing for them, but if the band happened to do something (get noticed or write a hit song) the lable would walk in with contract in hand and demand most the money from it. The musicians were so screwed. I knew a few of them who acutally legally changed their name just to get out of the contract. But heah ... they got to tell everyone (for 4 years) that they were signed with a label.

    38. Re:Negotiating Position by EvilBudMan · · Score: 1

      --Besides leaving your label at that point means other labels probably won't want to touch you because _they_ won't make as much money from you, since you'll know what you're really worth. Bummer huh?--

      Yes,

      you can only do that if you are popular.

      I'm sure that 10% of Led Zeppelin is better than 10% of nothing.

    39. Re:Negotiating Position by (trb001) · · Score: 1

      Let's be objective here. Because you and I don't like Creed doesn't mean that 2 million other people out there don't.

      --trb

    40. Re:Negotiating Position by joshsisk · · Score: 1

      Again, I'll mention that an advance is a lot different from either a loan or insurance, but if you insist on forcing it into one of those definitions, a loan is much closer.

      What about PMI (mortgage insurance)? You pay later to get a mortgage now.

      Pay later? You start paying your PMI immediately, at least my girlfriend had to start paying hers immediately... Besides, from what I know from her home purchase (I am not a homeowner myself, however, so I do not have personal experience with this), it's just insurance you need to get a home loan. That insurance transfers some risk from the lender to the insurance company, so they will lend to you.

      I don't see how that has much bearing on advance payments. For example, from what I know about car loans (which I have never gotten, either - I'm still on my first car, which I bought new with cash ten years ago), you generally have to agree to get extra car insurance, or the lender won't give you the money. The fact that you have to get an extra form of insurance doesn't mean the car loan you get is not a loan.

      Similarly, if you have to pay an extra fee to insure the lender from the fact that you might default, it does not mean that your home loan is not a loan. It's just a home loan that is insured.

      There is absolutely a transferral of risk. The risk that the CD will bomb.

      But the band is not paying the label to absorb the risk of the CD. You can tell this by simply imagining a scenario where a band's CD sells absolutely no copies - the only money that has changed hands is the label's. The band is out nothing except their time (and possibly their music, depending on their contract). In that situation, how is the band paying the label as insurance to defray the risk of the CD bombing? Where was the monetary risk? All of it was on the label - they are the ones out the money needed to make and distribute the record, as _well_ as the advance. So how is that insurance again?

      In reality, the label is basically buying the music from the band (depending on if it's a licensing deal or not - but most majors don't do licensing deals, which are a lot different. Some do, and most indies do, however). They are making an investment that they hope they will recoup in the future, with profit. The advance is simply a loan on that future profit.

      Actually the money is not required to be repaid later, it is drawn against future earnings.

      And the money often WILL have to be paid back, or the band will have to break up. If a band has a one record deal, they put out the record and come up owing the label $20,000, their contract might very well state that they are not allowed to release another album under their band name until they settle up that money... (which is usually done by the band's new record label, if any).

      Until you repay this money, the label can prevent your band from releasing material, keep you from using the band's name in publicity, etc... They might even be able to demand you pay it back either directly, or from other sources (via other labels is a common way), depending on the contract.

      Since the money owed is owed by the band, not the individuals, it's easier sometimes, to just walk away from the band then try to work through it. I know several people whose bands have broken up because of money owed to labels, that they had no hope of ever repaying themselves, and no other labels wanted to pick up the tab - so it became easier to just break up the band and not have to worry about the debt.

      Now, sometimes bands get lucky... The Dismemberment Plan is a good example - they recorded a record with a major, the major HATED it and dropped them, releasing them from their contract, just washing their hands of the whole affair. The album went on to be an indie hit. Something similar happened with the new Wilco record, I believe... But it's just as likely that a label _won't_ release you from your contract if you don't perform as well as they hope.

    41. Re:Negotiating Position by colmore · · Score: 1

      Well one, you aren't taking into consideration the considerable cost in time of burning 5000 CDs, lets assume 20 minutes per (realistic even with fast burners, given setup and inevitable problems) and that's (mental math here) about 1200 hours, or about 50 DAYS of man-hours burning CDs. But you don't want burned CDs. It looks unprofessional and it's of far less quality. Color album art printing is also very expensive. You want this thing to be stocked in display racks, not the $1 bin, so appearance matters. You can't have inkjet printing and a blue-back CDR. CDrs are pretty much only good for demos. Now I personally know a lot of bands in my home town (Athens, GA) area that trade on CDrs and printing stolen from Kinkos, but they aren't expecting to "make it" this way. They either regard the band as an expensive and time-consuming hobby or as a stepping stone toward a contract. This style of self-publishing won't net your band any cash, which is what we're talking about here.

      --
      In Capitalist America, bank robs you!
    42. Re:Negotiating Position by jandrese · · Score: 1

      The parent was talking about not being able to buy a CD of a local band that played in a bar because they didn't have any, which then brought on the $3/per cd cost I was replying too. Nobody pressing 5000 CDs is going to "make it" in that sense anyway. For that you need a big rip off recording contract.

      20 minutes to burn a CD is way too long these days, especially if you're burning from image. It's not unrealistic to expect a decent burner to finish in 5 minutes anymore. What's more, burners are _cheap_, you can have several of them working in parallel, which would cut down on the hours needed to burn the CDs considerably.

      --

      I read the internet for the articles.
  8. $40k.... so what? by Anonymous Coward · · Score: 2, Insightful

    Is making music really that much harder than, say, being an ER technician? Why should musicians feel automatically entitled to millions of dollars for a year's work? "I played a guitar for a few hours in the studio, travelled around being treated like a god for a month, had sex with a few groupies, and I only earned $40,000." Cry me a river.

    1. Re:$40k.... so what? by Zygote-IC- · · Score: 2, Insightful

      No it's not much harder than being an ER technician. But if what I do yields $8.4 million and I walk away with 40k you would bet I would be pissed.
      It's like everyone that takes issue with how much athletes make. When the owners (read old, white guys) make enough money to roll naked in it like Scrooge McDuck no one says anything. Want to pay a runningback that puts all those asses in the seat for the old white guys and the athletes are greedy uncaring sons of bitches.
      If what I do prompts people to put down their hard earned cash I shouldn't get bilked out of it by...surprise..a group of old white guys..

    2. Re:$40k.... so what? by Pxtl · · Score: 3, Insightful

      Thats not the point - the point is that he did it damn well. He made it into the top 2%. Most don't. Most tragically, his music made a massive steaming pile of money for other people - not him. He got very little. That is why this is sad - its not "oh drat, this guys' not getting his free ride" its "oh drat, this guy climbed to the top of percentile of his industry, made buckets of money for other people, and scraped a medium paycheck for his efforts".

    3. Re:$40k.... so what? by Cokelee · · Score: 2, Funny
      Cry me a river.

      You could've at least NOT quoted a song

    4. Re:$40k.... so what? by ryepup · · Score: 5, Insightful

      The point isn't that they only make 40k, the point it that thy are make 8 million and only seeing 40k. That other money is being eaten up by an industry that exists so it can continue to exist. You know how you can get an e-commerce package for $25/mo? Yeah, thats what the music industry could be, a monthly service for any band to upload and be published. Then, local record stores with bulk burners could download and burn, or burn on demand for customers.
      Customer: "Do you have the latest radiohead?"
      Clerk at a PC: "That'll be ready in 10 minutes, $5.00 please."
      This recording industry is spending millions and millions manually doing the job of a good database. To make a long story short (too late) the problem is the record company being overpaid for a service it doesn't provide.

    5. Re:$40k.... so what? by Mmmrky · · Score: 2, Insightful

      I don't know about this. Let's say my group of engineers comes up with a wonderful new idea that gets pattented, implemented and makes my company millions of dollars. Think we are going to be millionaires? Of course not.

    6. Re:$40k.... so what? by Restil · · Score: 2, Insightful

      There are many jobs for which the net income for a company exceeds the salary paid for that work done. This applies to every company that ever made a profit. Many times, an individual employee might generate value for the company several times that for which he's compensated for. While at face value, that might not seem fair, the simple fact of the matter is, the employee doesn't risk anything. The employee doesn't put up a large sum of cash to get the job, and if for some reason the actions of an employee cause the company to lose a lot of money, in most cases the worst that will happen is they get fired.

      So take a look at the musicians. What do they risk by making the album. Ignore the fact that they have to have talent, which usually requires many years of unpaid work to get good enough to compete, this is typical for many jobs. Think "college"... "internship"... etc. But at the point they sign a contract, what do they risk? If there is a good chance that they'll actually lose money by signing the contract, then they shouldn't sign it, unless the potential reward for success far outweighs the potential risk. If the odds are that they'll at least eek out a managable salary from it, and 40k a year is definitely managable, then it's probably a good deal. The problems arise with the conditions of the contract that go beyond the yearly salary on one album. If its a one shot deal, one album, get paid, and renegotiate on the next one, then this is a VERY fair deal. I realize that it probably doesn't work that way. The record industry fleeces the artists. They own your soul, AND your copyrights. And that sucks.

      But the artists signed the contract. And look at all the fringe benefits. I mean... groupies! And what is the alternative? Be a sanitation engineer, play clubs at night, sell a few albums via the internet, and make more money, but only grade B groupies.

      Of course, *I* have groupies... and while it can be fun, definitely not something I'd consider as a condition of a contract.

      -Restil

      --
      Play with my webcams and lights here
    7. Re:$40k.... so what? by Anonymous Coward · · Score: 0

      Customer: "Do you have the latest radiohead?"
      Clerk at a PC: "That'll be ready in 10 minutes, $5.00 please."


      10 minutes?? Welcome to 3 years ago.

    8. Re:$40k.... so what? by Anonymous Coward · · Score: 0

      This is almost the right analogy...

      If I'm working as an engineer for a major company and come up with a new idea while on the job, I wouldn't expect a substantial share of the idea. The company pays a regular salary; they, not I, am taking the risks.

      On the other hand, if I come up with a new patentable idea and decide to go out and start my own company, I would expect to take on the whole risk AND the whole reward.

      I suspect that most bands are more like the latter.

    9. Re:$40k.... so what? by Anonymous Coward · · Score: 0

      Most bands start their own record production, marketing and distribution compaies?

      asshat

    10. Re:$40k.... so what? by Anonymous Coward · · Score: 0

      Old White Guys??? Even the small rap and r&b lables. You forgot to attack America too. LOL

    11. Re:$40k.... so what? by ryepup · · Score: 1

      They need to label it as well, print out the booklet, put it all in the jewel case.

    12. Re:$40k.... so what? by JebusIsLord · · Score: 1

      think you're going to make $40,000 the next year? I expect you'd be pretty comfortable, as any engineering firm out there would love to have you and compensate accordingly. Only in the music industry are you a slave to your current label.

      --
      Jeremy
    13. Re:$40k.... so what? by Grax · · Score: 1

      Actually as the one coming up with the great idea or simply as the one that is the backbone of the company I certainly believe it is only fair that I be compensated.

      The most important people at Ford are the engineers. They make the product. The most important part of Intel is the chip designer. The most important part of the music business is the musician. etc etc.

      But the problem here is that the people that are the expert negotiators for the company (those that set up the deals and market the product) are also the most adept at getting themselves a good deal and marketing themselves.

      If engineers were as good at marketing themselves we would see superstar engineers with bidding wars going on all the time.

    14. Re:$40k.... so what? by Anonymous Coward · · Score: 0

      If us old white guys really controld things there would be no puff daddy or p. diddy or whatever name de jour, no little bow wow, and no rap.

    15. Re:$40k.... so what? by GeorgeVW · · Score: 1

      In addition to the other factors that have been mentioned here, that ER tech gets benefits, health insurance, paid vacation, and has some minimal form of job security (although less today than in the past, but that's another discussion). Also, if you think it's a) "a few hours in the studio", b) "beiing treated like a god", and c) "sex with a few groupies", you've been watching too much E! programming or episodes of "Behind The Music" and don't know many working musicians. I don't know a single musician who feels "entitled to millions of dollars for a year's work", and I've been playing guitar, writing, engineering, and producing for 35 years. All most musicians want is the chance to make a living doing what they love. Fewer than 5% of musicians are able to make a living playing music. What's the percentage of trained ER techs who make a living? How many years of training and practice do they have as compared to the lifetime of training and practice that it takes to be a good musician? BTW, yes, I will go so far as to say that making music (at least music that other people want to listen to) is harder than being an ER tech. Anybody with the proper training, can do the latter, the first requires something a little bit extra.

    16. Re:$40k.... so what? by Anonymous Coward · · Score: 0

      Some of us engineers are pretty good at marketing ourselves. I've managed to get about a $20k/yr raise for the last 5 years. Granted I started out low and got a college degree in the middle, but it still puts me in the same place today.

      If you're worth it, know you are and carry that into the negotiation. It makes a world of difference.

      The key difference between the computing industry and the music industry is that skill is not really a prereq for the music industry.

      A high school girl who knows 5 chords can make it big if she's hot and gets a big label to push her. If she asks for too much, the label passes and finds another hopeful.

    17. Re:$40k.... so what? by Fulcrum+of+Evil · · Score: 1

      There are many jobs for which the net income for a company exceeds the salary paid for that work done. This applies to every company that ever made a profit. Many times, an individual employee might generate value for the company several times that for which he's compensated for. While at face value, that might not seem fair, the simple fact of the matter is, the employee doesn't risk anything. The employee doesn't put up a large sum of cash to get the job, and if for some reason the actions of an employee cause the company to lose a lot of money, in most cases the worst that will happen is they get fired.

      So, you think that it's reasonable to work for a year for the chance at making 2% of the gross, split 4 ways? That's pretty rotten, and if you don't make it big, then you owe your soul to the recording company. If I were presented with such a contract, I'd demand that the recording company pay the production and promotion costs out of their portion and leave my band with their $0.80/CD. Then add a clause that allows them to opt out in exchange for paying another $1.60/CD to the band. Sure, I'd probably be kicked out, but so what? How is that really worse than signing a deal with the devil?

      --
      "We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"
    18. Re:$40k.... so what? by anthony_dipierro · · Score: 1

      Thats not the point - the point is that he did it damn well. He made it into the top 2%. Most don't.

      Even if they didn't make it they still would have gotten to keep the $100,000 advance. And then they would have lost millions for for other people.

    19. Re:$40k.... so what? by Anonymous Coward · · Score: 0

      think you're going to make $40,000 the next year? I expect you'd be pretty comfortable, as any engineering firm out there would love to have you and compensate accordingly.

      Yeah, cause I don't know any good engineers who lost their job. Oh wait a second, I am one.

    20. Re:$40k.... so what? by Zygote-IC- · · Score: 1

      Old White Guys??? Even the small rap and r&b lables. You forgot to attack America too. LOL

      Yeah, whenever I see the RIAA members on television, or the "music industry" testifying before Congress in an attempt to keep their bloated, diseased carcass of a business plan alive I always see young hip-hop labels. Not to say that those labels aren't built on the foundation with the same type of greed and abusive contracts that have plagued the more "corporate" entities that we have all come to know and love but they are just following the plan established by those that came before them, which whether you like it or not, is primarily old white guys in ill fitting suits with trophy wives, cell phones that don't stop ringing and a Mercedes...at least that's what it looks like from CSPAN.

      Oh my God that is one hell of a runon sentence..

    21. Re:$40k.... so what? by DragonMagic · · Score: 1

      No, but if your patent gets the company a contract or sales exceeding their usual amount for work, you're likely to see a bonus, or if possible, get a promotion.

      In the music industry, if you're the band, where's the promotion? Where's the bonus? It's a crappy work-for-hire in the eyes of the RIAA's members which seems to think that without them, the band would definitely not be big.

      With the internet now, though, bands can market and push their own products without the RIAA. Time for some of them looking for record contracts to try the 'net first.

      --

      Human nature is the same everywhere; the modes only are different. -- Earl of Chesterfield
    22. Re:$40k.... so what? by FunkSoulBrother · · Score: 1

      Old white guys with a lot of money aren't stupid. They don't have to appreciate rap artistically to realize there is a lot of selling to be done to kids across america. Rap=Cash, and the record companies know it.

    23. Re:$40k.... so what? by geekee · · Score: 1

      I helped design some chips last year that brought in over a million in revenue in just prototypes, and we're still in the red. I didn't make a great deal of money in salary, and that's reasonable. I'm not risking millions of dollars on our venture. Similarly, the artists are a risk. They don't deserve a huge return when they're taking little risk. No one's twisting their arms for those record contracts they're bitching about it. Before the contract offer was made, they were begging for the opportunity.

      --
      Vote for Pedro
    24. Re:$40k.... so what? by Theaetetus · · Score: 1
      Bleh... Justin Timbersuck? How about Julie London, written in 1955... almost 50 years before he came on the scene.

      -T

    25. Re:$40k.... so what? by JebusIsLord · · Score: 1

      Wow, you invented something that made your company millions and were subsequently laid off? Shitty. Either that or we're talking about two different scenarios.

      --
      Jeremy
    26. Re:$40k.... so what? by Cokelee · · Score: 1
      Bleh... Justin Timbersuck? How about Julie London, written in 1955... almost 50 years before he came on the scene.

      You'd think that you'd realize that the whole reason for posting the Justin Timberlake version was to show a song that the RIAA is making money off of, as in RIGHT NOW. You're impulse to reply is stronger than the one to think . . . interesting.

    27. Re:$40k.... so what? by Anonymous Coward · · Score: 1, Interesting

      Ok, but, here's the deal:

      Is it, or is it not, possible for a band to secure some capital from an outside source, and use that to leverage a better contract with the record label. Or, do musical acts with some of the own money end up having to sign the same one-sided deal as everyone else, which amounts to taking a loan from the record company.

      It's not all that expensive to produce a digital master of, say, a four piece rock band. Lots of people do this routinely without all that much money invested. If you can do some of the preproduction work yourself in a home studio, all you really have left is post and distribution. You still can't really do this on consumer formats, so you still need 30-50 grand for your "home" (more likely college, church, etc.) studio.

      What you want from the record company is their nationwide/international marketing. So if you had your own way of producing your creative work, and could put a bit of cash on the table to prime the pump, you should be able to negotiate quite a deal with a record label.

      Now, if there were some way for an artist to gauge his market accurately, then it would be possible to self-produce with some certainty.

      I've seen it work with high-school and college band/orchestra/choir recordings. If you know your market will support 2500 CD's (and if you can pre-sell them, even better!), you know your budget up front. For $50 grand, you can build out a quiet room, lease a 24 track console, some mikes, and even pay an artist for a nice cover...
      The actual disk, with your artwork silkscreened on the face, your 4-color insert, shrinkwrapped jewel case should be under $2.00 a piece, at that volume.

      If you can THEN go to the A&R folks with "here's what we did on our own, what'll you give us to take it to the next level?"

      instead of...

      "like dood, we wanna be rock stars, can we trade our souls for that?"

      The trouble is that nobody thinks to take their own risks, they don't have their own money to put down, they don't want to work that hard, etc.

      But it can be done. Schools and churches do it all the time. So instead of borrowing a couple of million against your soul, consider borrowing a few thou after making a harsh, realistic assessment of what you can actually sell. If you are making enough at the door of your concerts (you ARE playing 300 nights a year, right? Making some bartenders and bar managers rich where you're the house band, right?) you can pay for the costs of producing a damned CD out of your pocket.

      I mean, geez, isn't your keyboard player a geek who already has the ability to churn out a timecoded multitrack master? Why hasn't one of the clubs you play in offered to help you make a cd to help promote the (already-popular) house band? Where do the "millions of bucks" come into play, again?

    28. Re:$40k.... so what? by Anonymous Coward · · Score: 0

      The point is not that they make a profit off your work for them (they have to), it's that they take such a huge chunk of it...

    29. Re:$40k.... so what? by Anonymous Coward · · Score: 0

      Huh? The advance is used to cover recording costs for the album. Even if you're suggesting they take the cash and run to Mexico or something, they won't have the opportunity, since the record company gives the money directly to the recording studio.

    30. Re:$40k.... so what? by Theaetetus · · Score: 1
      You'd think that you'd realize that the whole reason for posting the Justin Timberlake version was to show a song that the RIAA is making money off of, as in RIGHT NOW. You're impulse to reply is stronger than the one to think . . . interesting.

      Hmmmm... Really now...

      Your original post, quoted in ENTIRETY:

      [from parent]Cry me a river.

      [from you] You could've at least NOT quoted a song [azlyrics.com]"

      Your impulse to reply with a useless one line post that adds nothing to the original discussion, but simply shows your ability to search (or quote) song lyrics, seems to be stronger than the one to think... interesting.

      Then, your impulse to reply to a post (albeit facetious) that was simply pointing out that you're quoting song lyrics that were quoting the original half a century ago with what is essentially a flamebait post ("You're [sic] impulse to reply is stronger than the one to think... interesting") with an ad hominem attack is stronger than the one to shut up and let real adults carry on the conversation here... interesting.

      BTW, it's "your". "You're" is a contraction of "you are", so your post said "You are impulse to reply..."
      Is English not your first language? If so, I apologize. If it is, though, I apologize again... for the education which you must have missed.

      -T

    31. Re:$40k.... so what? by Anonymous Coward · · Score: 0

      No, 40k is what you might make if you're lucky.

      Most musicians don't make enough to work full-time as musicians.

      If you're lucky enough to make enough to work as a full-time musician, you can be certain that somebody else is making a huge profit off you.

    32. Re:$40k.... so what? by anthony_dipierro · · Score: 1

      RTFA. "Because the band was hot, they got an advance from the record company of $300,000. They spent $200,000 of that recording the album, which included a $50,000 advance to the producer. They pocketed the remaining $100,000."

  9. so much crap. by jazznjava · · Score: 1

    this lack of funds is what must be driving good bands to produce loads of crap filler all the time.

  10. Re:I'd hit it! by Stinson · · Score: 0, Offtopic

    yeah, and first to make it to the bottom of the list when modded for being an idiot

  11. That doesn't take into account... by Anonymous Coward · · Score: 1, Insightful

    Touring and playing live where most musicians really make their money.

    1. Re:That doesn't take into account... by rhoads · · Score: 1

      ... and interviews, magazine covers (1M a pop) etc.

    2. Re:That doesn't take into account... by Cokelee · · Score: 1
      Touring and playing live where most musicians really make their money.

      True, but many of the same fees apply. Not to mention travel money and the venues where they perform.

    3. Re:That doesn't take into account... by Anonymous Coward · · Score: 0

      Actually, touring is not a profit making endeavour. Most bands, except the largest tours, do not turn a profit. A small band just starting out will get a small fee from the club. If they have any merchandise to sell, THAT will bring them some cash. The largest percentage of funds goes to the music publishers, and most savvy musicians will establish their own personal publishing company and pocket a percentage of that cash.

      And while music piracy is NOT the cause of artists receiving such pitiful reimbursement, the math shows that the artist gets 2 percent of the cash from his recording, and THAT pathetic amount is what you steal from the artists pocket when you pirate.

    4. Re:That doesn't take into account... by glowfish · · Score: 5, Interesting

      You guys are ignorant. The same thing happens in the live music industry. Only a tiny miniscule ammount of people make money touring. And there are probably only a handful of people in the world (mostly actors, not musicians btw) who get paid to appear on magazines.
      I am a professional musician who recently put out a record on a major label. I did a west coast tour last month where every show was sold out. Wanna know how much money I made?
      $80 a day. And that's with the shows selling out.
      The live music industry is the same as the record industry. They've worked it out so that the musicians get nothing.

    5. Re:That doesn't take into account... by Mononoke · · Score: 1
      Touring and playing live where most musicians really make their money.
      No it isn't. Do you know hom much it cost to put on a concert? Do you realize how many people not associated with the band (local stagehands, the venue, local advertising, the sound, lighting, etc.) have their fingers in the pie?

      Unsigned bands probably make more money from live events, in the long run, as they keep production costs down to a minimum.

      --
      NetInfo connection failed for server 127.0.0.1/local
    6. Re:That doesn't take into account... by Exantrius · · Score: 1

      What's your act name? Are you embarrassed that you're posting on slashdot? Afraid to scare away the groupies by announcing it? /Ex :-P

    7. Re:That doesn't take into account... by Anonymous Coward · · Score: 0

      Yeah, man, Just drop the modest act, and tell us about the groupies already!

    8. Re:That doesn't take into account... by Anonymous Coward · · Score: 0

      "Touring and playing live where most musicians really make their money. "

      Why is this myth still around? There is only a handfull of people who can make any significant money at all on touring. It's BS.

      Most make their living on CD sales.

  12. Two words: Live Music. by Pxtl · · Score: 4, Insightful

    Don't buy CD's from a record store. Don't pirate music - it only increases the popularity of the people you shouldn't be buying CD's from.

    Go see live music. If you live in a city larger than 50,000 people, there should be a few bars that get live music. Go see them. If you like them, buy their music. No record company required. No inernet piracy required. Just good music.

    If they wanna post stuff for free on the internet, more power to 'em. I'll download that. But I don't expect them to.

    1. Re:Two words: Live Music. by JohnG · · Score: 1

      A local band called "The Drive" IIRC opened for Ted Nugent and Lynyrd Skynryd and were a great band. Problem is they never told how to get a CD, or how to ever hear from them again. I would have totally bought their CD or at least went to check them out at local clubs a few times if they had made some mention of how to do so.

    2. Re:Two words: Live Music. by Kafka_Canada · · Score: 3, Insightful

      This won't really help the situation any. No band will play the bar circuit forever, there's simply not enough money, fanbase, circulation, etc., and even musicians have to eat (and support families, etc.). For most of them, it's a chance to have fun, pay some of the bills, and ultimately, get heard and make a record. What happens then? They sign a contract with the record company you've been trying to avoid, and your choice is now to buy the CD from a retail store, or not at all. You'll be in an endless cycle of listening to up-and-coming bands as they work on their routine, always leaving them off once they hit the big-time. Yes, not all bands aim for million-dollar deals, stadiums, world tours, etc., but as I said before, no band is going to keep playing local bars forever, no matter how much hometown/non-label support you can drum up.

      Of course, there's no reason one HAS to sign with a big label, as a musician. Sure they've got the distribution channels, marketing, etc. -- but if your complaint is that the music industry is run by cartel, then you'd better be ready to innovate the business practices, and not just make good music. There's no law against starting your own label, and while it's a difficult challenge, it's the only legitimate way, working within the system, to obsolete the cartels.

      --
      Fuck it
    3. Re:Two words: Live Music. by Cokelee · · Score: 1
      If you live in a city larger than 50,000 people, there should be a few bars that get live music.

      Okay, so if you're not >18 or >21 and you don't live in a city you're really screwed then.

      A lot of the music industries market is younger than 18, and in high school--they can't do those things, so they steal music. Ever notice it whwen the WSJ does an article on this sorta thing it's not the 20-30 year olds swapping music, it is mostly the young that don't have many other options and don't have much money. Is it right? Well, is the RIAA right??

    4. Re:Two words: Live Music. by mauthbaux · · Score: 1

      Live shows are great and all, but even then, the agencies have alot more say in the matter than the actual bands do, regardless of how popular they are. Pearl Jam was in a court battle for quite awhile a few years ago against ticket-master. They eventually ended up losing the case (allowing ticketmaster to control the prices on tickets for all of their shows). When it comes down to it, most musical artists know exactly what they're getting into when they enter the business. They don't do it for the money or the fame; they do it for the love of making music. We all have decisions like that to make in our lives. What's more important to us?... having money to support our family?... or doing what we love and (hopefully) just scraping by?.... I don't sympathise with the record companies, but with all the stinking welfare programs that my tax dollars are paying for, I don't think that we need to need to take too much pity on the artists either. If you respect the band and love their music, buy the CDs, go to the shows, and write them some fan mail. If you only like one of their songs and think that everything else about them (or the label they're working under)... then go grab the mp3s off of some p2p network.... it's that simple.....

      --
      "Operating systems suck: you're better off using only the BIOS" --trainsaw.com
    5. Re:Two words: Live Music. by Fulcrum+of+Evil · · Score: 1, Funny

      If you live in a city larger than 50,000 people, there should be a few bars that get live music. Go see them.

      Just don't go see Great White. Noone gets out alive.

      --
      "We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"
    6. Re:Two words: Live Music. by warpath · · Score: 2, Funny

      I've had a hell of a time convincing bands to play in my car as I drive to work though. Not to mention the fact that I can't even fit the drum kit in the back seat.

    7. Re:Two words: Live Music. by Drishmung · · Score: 1
      Not universally true, at least not for all genres.

      I understand the country circuit has artists who spend their professional lives touring. I know of at least two folkies (Martin Carthy and Andy Irvine) who prefer touring in small venues to recording or stadium gigs. They may not be mega rich, but they evidentially love their work, and make eoungh money to be happy. Andy even wrote a song called Never Tire of the Road---on Rain on the Roof, an album noted on the web site as

      Andy self-produced and independently released this album in 1996 and has since only sold it at live shows

      Musicians that play in symphony orchestras also get paid a living wage for their job.

      So what's with the 'pop/rock' industry? My guess is that it is perceived as being grossly unfair that the musician makes so little money, and that the record company makes so much.

      --
      Protoplasm. Quiet Protoplasm. I like quiet protoplasm.
    8. Re:Two words: Live Music. by pjrc · · Score: 1
      Go see live music.

      Not very practical while driving in the car, while working out at the gym (or treadmill at home), while using the computer (hopefully for something more productive than posting to slashdot....), while shopping, while having sex, and so on.

    9. Re:Two words: Live Music. by Anonymous Coward · · Score: 0

      >[T]here should be a few bars that get live music.

      What if you don't like to be around people who consume alcohol?

    10. Re:Two words: Live Music. by will_die · · Score: 1

      I am just waiting, I figure that "great white" will get a contract with a major label out of this.
      With all the times thier name is getting put out someone will sign them up.

  13. A Studio Story (Mixerman) by BigAl_nz · · Score: 3, Interesting

    No, I haven't read the story yet :)

    I came across this the other week, it's a long but very good read. I honestly don't know how true it is, but I read it all anyway :)

    It's the story of a guy who's mixing a band for a big label, and his trials and tribulations.

    The Daily Adventures of Mixerman.

    --
    --- There isn't any problem that can't be solved by a small, low yield nuclear device, is there??
  14. It's been said before, but.... by Adolatra · · Score: 4, Insightful
    Boycott the RIAA. That's what has to happen. It's already started. Hillary Rosen and the suits are releasing all these surveys showing how they're starting to go downhill. They've tried half-assed DRM-limited "streaming" downloads, they've tried inflating the CD prices to compensate, but it will take every music fan's voice in concert to let them know what they really need to do.

    Get the hell out of the way.

    And don't forget the artists. Attend local shows, support Independent acts. Buy merchandise, hell, mail a check, but find other ways to support your favorite musicians without giving a tithe to the RIAA. It can happen.

    1. Re:It's been said before, but.... by Anonymous Coward · · Score: 0

      mail a check

      I think that for next Joe Satriani album I am gonna download from internet and send Joe a 20 US$ check in exchange...

      interesting...

  15. Piracy by Loosewire · · Score: 0

    *looks at his warehouse full of pirated music* ill bet i get blamed for this :-(

    --
    Slashdot - The one stop shop for procrastination
  16. Touring by Paladine97 · · Score: 1

    That's where the real money is. Go on a multi-city tour and you make major bucks. Just look at Paul McCartney. He sold out each show and tickets were going for $200 +. That's some major cash.

    1. Re:Touring by lisle · · Score: 1

      The article didnt even mention the reaming neww acts get for tour support; the Gruntheads wont keep a penny of their $40K apiece. Theyll spend ten times that on the road supporting their album; the label stipulates that in the initial contract, specifying that the artist foots ALL the bills. Courtney Love spells it all out in her essay, the title ofwhich escapes me...

    2. Re:Touring by glowfish · · Score: 1

      You are truly an ignorant piece of shit. How many bands are as big as Paul Mcartney. Do you think people would pay $200 a ticket to go see Built To Spill?
      Do you think all bands are billionares like Mccartney? Go read the earlier thread on touring costs and have a nice sip of reality.

    3. Re:Touring by Cokelee · · Score: 2, Insightful
      That's where the real money is. Go on a multi-city tour and you make major bucks. Just look at Paul McCartney. He sold out each show and tickets were going for $200 +. That's some major cash.

      It cost money to tour. No one NEW gets $200 a ticket. How many Paul McCartney's do YOU know??? Horrible argument.

    4. Re:Touring by JohnG · · Score: 1

      OK, no let's dither that down to a gold record selling artist. A gold record selling artist has sold 0.5 million records. As of last year Paul had over 163 million records to his name as a Beatle alone. He's been a successful solo act for over 3 decades now. That means he's sold probably 5 or 6 HUNDRED times as many albums as the average gold record artist. Now do the figuring. No figure in what the countless thousands of artists that never go gold make.

    5. Re:Touring by Anonymous Coward · · Score: 0

      "That's where the real money is."

      No, it isn't. The majority of artists make their living on CD sales. The myth about "most money is made on tourning" is a very persistent one.

  17. Nice article but... by chrisgeleven · · Score: 1, Informative

    Only oversight I saw was what the money from touring? Supposedly that is where a band makes all their money.

    Also there is that little thing called the record contract. Most bands sign away the rights to their songs, so they don't own the original masters, the record companies do.

    1. Re:Nice article but... by Adolatra · · Score: 1

      Only oversight I saw was what the money from touring? Supposedly that is where a band makes all their money. Clear Channel (mostly) and the other corporations that underwrite tours are just as bad at skimming musicians' income as the RIAA.

  18. Oops! by virusjan · · Score: 1

    Someone forgot to mention that bands really make their money off of touring.

    --
    Veni, veni, veni.
    1. Re:Oops! by Cokelee · · Score: 1
      Someone forgot to mention that bands really make their money off of touring.

      It cost money to tour. They don't have much money. If they take all the money they have and toured, they net NOTHING until some amount of profits come in from the tour. Sure they'll make money, but think NET income, NET income.

    2. Re:Oops! by Anonymous Coward · · Score: 0

      "Someone forgot to mention that bands really make their money off of touring. "

      No, they don't. It's only a handfull of artists like britney spears that can make a living on touring. Touring is something you do to promote a band and build a trademark, not to earn money.

  19. it should be noted by Stanley+Feinbaum · · Score: 1, Funny

    That most rock bands make most of their money from playing shows. A concert that is sold out and has lots of merchandise sales could mean big profit for the band itself. As an added bonus, the band also meets many groupies eager to have sex with them all night. That's something you DON'T get from being a sys admin!

    --

    Stanley Feinbaum, professional journalist and master debater! God bless the USA!

    1. Re:it should be noted by Renraku · · Score: 1

      Just like herpes.

      --
      Job? I don't have time to get a job! Who will sit around and bitch about being broke and unemployed then?
    2. Re:it should be noted by Anonymous Coward · · Score: 0


      You don't go to the right Sci Fi conventions.

  20. The article forgets a few things by Flounder · · Score: 0
    1) Merchandising - If they sold a gold record, they're probably selling at least a few T-Shirts and posters.

    2) Concerts - Depending on if they go on a small club tour or open for a bigger act (they only went gold, and it's their first album, so they're probably not ready to headline a major arena tour yet). If they do their own promotion and hit the club circuit, they're bound to make some money that way (and hit it with enough groupies to make the bus trips worthwhile).

    3) Definite follow up deals - Since their first album went gold, they're definitely going to be making follow up albums. They can probably score a deal for two more albums, and as they've already had one hit album, they'll probably be able to get a better deal the next time.

    --

    No boom today. Boom tomorrow. There's always a boom tomorrow. - Cmdr. Susan Ivanova

    1. Re:The article forgets a few things by jeffy124 · · Score: 1

      4) Britney Spears in Pepsi commercials.

      --
      The One Rule Of Chess You'll Ever Need: Don't play someone who carries a kit in their bookbag.
  21. Check out Courtney Love's thoughts on this... by bahtama · · Score: 5, Informative

    You can read her manifesto about this at http://www.holemusic.com/speech/
    It's more in depth than this article and comes from someone who has been there, a good read..

    --

    =-=-=-=-=-=-=-=-=
    Oh bother.

    1. Re:Check out Courtney Love's thoughts on this... by martyn+s · · Score: 1

      Yeah, like she actually wrote that.

  22. a retread of albini's math, but... by millia · · Score: 1

    still very accurate. once upon a time, i lived next door to one of the members of drivin 'n cryin, at the height of their popularity, and this is EXACTLY the situation they were in- and they were on the more artist-friendly island records.
    it seems you either have to do it all yourself, and jam econo a la mike watt, or become huge. i'm glad more bands are realizing that jamming econo will enable them to keep going.

    google for steve albini's math if you don't know what i'm referring to.

    --
    stored on computers from birth to the grave
  23. It's a breeze... by Vincman · · Score: 1

    being famous, that is! A musician in today's pop-industry has become a tool to promote various related products like clothes, jewelery, cars, food, etc. An "artist's" income is not restricted to record-sales alone, they are just a way to rate his popularity and as such his value.

  24. You beat me to it! by imamassivetree · · Score: 0, Redundant

    Damn and I was all interested in posting/whoring it. This artcle (I even read it) is just a poor rewrite of albini's.

  25. Well duh by Anonymous Coward · · Score: 0

    I think it's relatively common knowledge that even if an album "goes gold" or such it still isn't the primary source of income for a group. That's why most decent groups have things called concerts where they charge money to attend.

  26. Slave to RIAA -- Unemployment . . . by Cokelee · · Score: 1

    Hey, at least they have a job $40k is more than unemployment.

  27. This makes me... by forgoil · · Score: 1

    This makes me want to produce records, not make music. The music industry is caving in on itself, because of itself, nothing else.

  28. Where does it go? by Anonymous Coward · · Score: 0

    But golly, where does all the money go if the artists don't get it? Gee, do you think the record industry is pocketing it?

    Always remember that the record industry is a machine for making money for the executives there, and that they will do or say anything to bring themselves more money. They've reshaped popular culture to do it, and they're more than willing to turn every PC into a data gathering television to do it.

  29. And the point is what? by sheldon · · Score: 5, Funny

    I guess I'm puzzled by the attitude displayed here on /.

    On the one hand I'm told as a software developer it's not about the money. I should code just for the love of it!

    On the other hand I'm supposed to be outraged because a rock star only makes $40k off a record deal?

    And the rock star get's groupies, whereas the programmer just has pr0n.

    1. Re:And the point is what? by handsomepete · · Score: 1
      This may just be me, but I think it goes like this:

      Software Developer: If you love it and want to do it for a living, you can get a job that pays you a decent wage for your work, the company makes money because of your efficent work. A company can compensate you fairly or you can go elsewhere. Lots of options (economic conditions not withstanding).

      Rock star: If you love it and want to do it for a living, you can get a job with a major record label and get paid a small percentage or actually end up losing money. The company will almost always make a huge sum of money while you are not compensated fairly. This is, however, the norm in the industry, so if you go elsewhere, you're almost guaranteed to get the same or a worse deal. Limited options.

      Granted, it's a lot more in depth than that (yep, rockstars get to travel and have random sex with groupies, not to mention be famous if that's your thing - you can go indie, but 9 times out of 10, you just don't make that much money), but that's how I see it on a basic level. If you want to make it even more basic, everyone hates to see the big evil corporation take advantage of the average joe just trying to make his way in the world. Or jealousy of success. Take your pick. Not sure if I buy into either of those, but whatever.

      Either one you can do for free and for the love of it and then you don't have to sweat the money aspect. I play music and don't make shit from shows. Doesn't bother me because I know what I'm getting in to, and I've got a real job (whether I'm fairly compensated is up for debate) to fund the rest of my life. It is a choice - the music industry's methods aren't exactly a secret these days.

    2. Re:And the point is what? by baba · · Score: 1

      The "point" is that this is the case of a *very* successful recording. In most cases, the artists end up with diddly/squat for their effort.

    3. Re:And the point is what? by Alsee · · Score: 1

      On the one hand I'm told as a software developer it's not about the money. I should code just for the love of it!

      No, I'm sure virtually everyone would say that that is someone wants you to write code so they can sell it then they should pay well you to do so.

      If you don't want to write open source then don't. The only thing the GNU licence does is allow you to share it for free while still forcing someone to PAY you if they want to profit from selling your work.

      I'm supposed to be outraged because a rock star only makes $40k off a record deal?

      That is $40k for the exceptionally highly paid fraction of one percent who have "struck GOLD" and earned enormous profits. Record labels make a heathy profit on records that fall far short of going gold.

      Many people have the oppinion that labels are using abusive tactics. They leave "sucessful" artists essentially in debt to the label and they pay "superstars" a pittance.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    4. Re:And the point is what? by Anonymous Coward · · Score: 0
      I guess I'm puzzled by the attitude displayed here on /.

      On the one hand I'm told ...

      On the other hand I'm supposed to be outraged because ...

      Once again: Slashdot is not one single unified corporate voice with a single agenda to promote. It's a collection of headlines and comments written by thousands of volunteers, who all have their own unique personal opinions.

      If you want predigested pap spoonfed to you, go to CNN instead.

  30. So? by Viking+Coder · · Score: 3, Insightful

    In this case, each band member got 0.476% of the total gross of the sales of the album they worked on.

    At my job, I get approximately 0.307% of the total gross of the sales of the software I work on.

    I spent 21 years in school working to get my job (which wasn't cheap), and I've been working in my industry for 8 years.

    I also work well over 40 hours a week, and I'm never, ever going to get a product endorsement deal. (They probably won't either, but if they do, it's extremely lucrative.)

    I'm not saying they're not getting screwed, but I do want to try to keep things in perspective.

    --
    Education is the silver bullet.
    1. Re:So? by mlyle · · Score: 1

      Is your product in the 98th percentile of the software industry in profitability/unit counts sold?

      How big is your development team compared to the 4 band members + a producer? It's probably larger than 5. (Sure, there's manufacturing, and other infrastructure at both places, but customer support is not as big a cost for record labels as your software gig, I'd think).

    2. Re:So? by tsetem · · Score: 1

      My one argument against that is there was a total of $161,909 (or 1.90% of gross) available to compensate the artists.

      Using the same logic, only ~2% of the sales of your software is used to compensate the programmers, managers, leads, etc. working on your software.

      For some reason, I don't think even Microsoft pockets 98% of the gross sales of their software.

    3. Re:So? by schon · · Score: 1

      In this case, each band member got 0.476% of the total gross of the sales of the album they worked on.

      Yes, and this hypothetical band is in the top 0.426% of their industry. Which means that the other 99.574% of artists make a hell of a lot less (if anything at all.)

      At my job, I get approximately 0.307% of the total gross of the sales of the software I work on.

      You're telling us you get paid on commission? Are your sales in the top 0.426% of the software industry?

      What happens if the software is never released (say because marketing decides that nobody wants to buy it)? Are you forced to keep working for free until your salary is repaid?

      And what if the software is released, but it doesn't make any money? Are you (again) forced to keep working for free until it's paid off?

      I spent 21 years in school working to get my job (which wasn't cheap)

      21 years!?!?!?! I call bullshit - if you include preschool, elementary, and high-school, then maybe, but you didn't pay for that ("it wasn't cheap") and everybody does that anyway, so you can't honestly say you did it "to get your job". (Hint: you did elementary and high school to get a job - and so did the hypothetical band.)

      I'm not saying they're not getting screwed, but I do want to try to keep things in perspective

      If you want to keep things in perspective, then don't try to distort your position.

    4. Re:So? by foqn1bo · · Score: 1

      Did you write that software yourself or with 3 to 4 other people max? Is that it? I don't mean to sound rude, but my impression is that software houses like what you're describing have a large number of employees working in various camps. By and large, everything is done by the artist(s) except for album cover art, mastering/mixing, and promotion. That's a whole lot of personal blood sweat and tears into your own creation to go down the drain.

      Frankly, it's not just the royalty percentage that's so apalling. The $40k estimate is a best case scenario for all but a handful you can count in one sitting. The rest are broke or owe money in the end, while the label has profited(slightly). The artist is responsible for paying the costs of marketing and promotion a good deal of the time. If the album is a flop, the artist is fully responsible for it economically

      They've got it set up as the best of both worlds for themselves, those music label assholes. Give the artist the "freedom" and "privialge" to be responsible for the economic success of their creation, and give them pennies on the dollar in any case. Very clever. The thing that sets you apart from them, my dear programmer, is that if the software that you helped write doesn't sell as well as the company would have liked, the blame isn't squarely placed on you. And, hopefully, you get to keep your salary, and a roof over your head.
    5. Re:So? by dscowboy · · Score: 1

      >>In this case, each band member got 0.476% of the total gross of the sales of the album they worked on.

      At my job, I get approximately 0.307% of the total gross of the sales of the software I work on.

      Your math may be accurate, but that doesn't make it relevant. Consider this:

      Your software product generated 10 million in sales. This was a combined effort of about 200 to 300 people. You get 1/325th of the revenue.

      Your 4-man electrical band produced music that generated 10 million in sales. This music could be distributed/sold over the internet, and the only costs would be 1) Studio time - 200,000 2) Music Video/Marketing - 600,000 3) Electronic Retailer fees - 20% - 2 million 4) Interest on the 800,000 in loans - 10% - 80,000.

      We'll round it up and say it costs 3 million to produce, market, and sell the album. 7 million / 4 = 1.75 million = almost TWO ORDERS OF MAGNITUDE greater than 40,000. If you and three other programmers spent a full year of your life coding a hot new software product, on your own, using LOANS to pay for expenses, you sure as hell would want more than ".476%" of the revenue!

    6. Re:So? by Viking+Coder · · Score: 1

      A lot of people sure sound pretty pissed off at me.

      If you're going to do something for a living, it's important to understand the situation. To that end, I praise the efforts of people to raise the awareness of how unlikely it is to make a lot of money at being a recording artist, signed to a major record label.

      I think a lot more kids have starry eyes looking at sports than at music, though. And the odds are far, far worse for any given kid who devotes their life to a game ever making significant money doing it.

      *shrug*

      Corporate rock still sucks. That said, I'm off to go to a concert! =)

      --
      Education is the silver bullet.
    7. Re:So? by Anonymous Coward · · Score: 0

      So? I lay bricks and never get to live free in those houses, not so much as a long weekend. Then again, that could be the difference between hired labour and a creative artist.

    8. Re:So? by Alsee · · Score: 1

      Is your product in the 98th percentile of the software industry in profitability/unit counts sold?

      128 of 30,000 is 99.57 percentile :)

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    9. Re:So? by Anonymous Coward · · Score: 0
      I get approximately 0.307% of the total gross of the sales of the software I work on

      So

      how much of that software did you write completly on your own?
      how much of that software did you design/spec/architect.
      Did you come up with the idea/function behind the software.

      If you did all the above for 0.3% then you were taken for a ride and/or you are plain stupid.

      If you didn't, then dont draw parallels between your work and a musicians.

      (a closer analogy is the id company)

  31. Ric Shrimpton said it best by eyegone · · Score: 4, Funny
    "As long as there's sex and drugs, I can probably do without rock 'n' roll."

    --
    "They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety."
    1. Re:Ric Shrimpton said it best by spun · · Score: 3, Funny

      "They that give up rock and roll for sex and drugs deserve neither rock and roll nor sex and drugs"

      --
      - None can love freedom heartily, but good men; the rest love not freedom, but license. -- John Milton
  32. Argument for Freeing music by fdicostanzo · · Score: 1

    This is an argument for freeing music if I ever saw one. The biggest complaint with online music seemed to be that the "artist" never saw the money- but it doesn't look like they do anyway. Why not simply acknowledge that the times have changed, technology has changed and that things aren't what they once were. Musicians can make a living from performances and the love of the job. Same with programmers.

    --
    Synergies are basically awesome, and they're even better when you leverage them. -PA
    1. Re:Argument for Freeing music by Forkenhoppen · · Score: 1

      No offense, dude, but I don't think I'd sell many tickets to an evening of me coding perl scripts..

  33. Being a rock star by Anonymous Coward · · Score: 0

    sounds about as profitable, on average, as being a producer of a Linux distro.

  34. Courney love also did the math by daves · · Score: 5, Informative

    In a 2000 speech to the Digital Hollywood online entertainment conference. It shows how a million dollar advance and a million copies sold can equal zero dollars.

    --
    People who disagree with you are not automatically evil, greedy, or stupid.
    1. Re:Courney love also did the math by smoondog · · Score: 1

      That leaves $350,000 for the four band members to split. After $170,000 in taxes, there's $180,000 left. That comes out to $45,000 per person.

      Although she does subtly hide the fact that each band member made a salary of $87,500 ... and acts as if it is a horrible thing. I realize that they may be getting screwed, but an $87K salary is pretty good. I'm pretty sure the taxes she is referring to are personal income taxes and self employment income taxes..... Not to defend the record industry, just to point out that all sides really want one thing, money. And they do this by acting like they are getting screwed.

      -Sean

    2. Re:Courney love also did the math by Anonymous Coward · · Score: 0

      Good point. Learn from Courtney Love. Marry someone with far more talent than you have, and then stage his suicide.

      Sorry, but I don't give that open sore on legs credit for having any original thoughts.

  35. It Won't Last Long by shylock0 · · Score: 5, Interesting
    The problems of the music industry are quickly reaching critical mass. Let's take a look at a few points:

    1) Radio monopolies. As has previously been discussed on /., this means that few bands ever get play time on the radio. In fact, radio today pretty much sucks unless you really like "Top 40" music. Now, there's a reason that Top 40 music used to be Top 40 -- it was popular (and usually fairly good) music. But that's not really the case anymore.

    2) Paying artists. The Music Industry can whine all it wants about "artists getting money" this and "artists getting money that" but the truth of the matter is, Item No. 1 makes the music industry so competitive that, after all the marketing is finished, they can't really afford to give any money back to the artists. Artists in today's music industry are somewhat like the sweatshop girls who make Abercrombie and Fitch cargo pants (or Nike shoes, or you name it): they produce a product sold for an extreme premium but are poorly paid. Incidentally, the premium goes not directly into the pockets of the responsible corporation, but instead into marketing and promotion -- but only of the artists which the record company likes.

    I firmly believe that we're about to experience a paradigm shift in entertainment delivery. The era of free music -- as it was in the 16, 17, and 1800s -- will once more be upon us. Recorded music will be free, and niche internet radio/community music sites will be responsible for the creation of new hits and pop sensatia (remember Michelle Branch? MP3.com, not the radio, was instrumental in her stardom). Artists will instead earn their money as they did 100 years ago: in concert. Ticket prices will skyrocket (and fans will pay), and probably move to an auction-dominated system -- which will equilibrize ticket prices. Some artists might be forced to get day jobs. But art, music, etc., they will all move onward...

    --
    Statistically speaking, there's a 99.998% chance that my IQ is higher than yours. Get over it.
    1. Re:It Won't Last Long by lisle · · Score: 1

      equilibrize?

    2. Re:It Won't Last Long by BWJones · · Score: 1

      In fact, radio today pretty much sucks unless you really like "Top 40" music.

      That's why I listen to public radio almost exclusively now, and they have even turned me on to some really good music that is not top40.

      Most of my music listening in the last couple of years has centered on replacing my old vinyl with CD's and making MP3's out of the old vinyl that is no longer available or will never be released on CD.

      --
      Visit Jonesblog and say hello.
    3. Re:It Won't Last Long by spectecjr · · Score: 1

      The era of free music -- as it was in the 16, 17, and 1800s -- will once more be upon us.

      Music was free in the 1600s, 1700s and 1800s?

      Free for whom? Perhaps you'd like to expound on this view of yours. Or are you just assuming that because you weren't alive then, and you'd like it all to be free...

      --
      Coming soon - pyrogyra
    4. Re:It Won't Last Long by Art+Tatum · · Score: 1

      I do think you've got a point but what are you going to do with music that doesn't work well in a live environment? There are an awful lot of techniques that rely on recording technology to work.

    5. Re:It Won't Last Long by shylock0 · · Score: 1
      I think that they'll probably move to a niche market (as much of it is already), and become either free on the 'net or have artists who will be forced to take day jobs to support themselves.

      I will repeat explicity what was the implicit statement in my original post: In the 21st century, no successful business model will be constructed based on the sale of recorded music for any price -- without the widespread implementation of DRM technologies which will surely be rejected by the body politic. If DRM isn't rejected, well then, it's a whole new ball game. But in the meantime, the artists you are speaking of will either A) get day jobs or B) cater to people who are willing to pay explicity for the recorded-style music, much like many today will pay to go hear music at Carnegie Hall, because classical is truly a style that no recording can do justice to.

      --
      Statistically speaking, there's a 99.998% chance that my IQ is higher than yours. Get over it.
    6. Re:It Won't Last Long by unitron · · Score: 1

      Actually, music wasn't free in the 1800s (19th Century). That's when people made money off of popular songs by selling the sheet music, hence "publishing rights". And yes, back then, publishers bought all rights to songs from the composers for a one time payment unless the composer was popular enough to play one publishing house against another to negotiate more favorable terms.

      --

      I see even classic Slashdot is now pretty much unusable on dial up anymore.

    7. Re:It Won't Last Long by shylock0 · · Score: 1

      Yes and no. That practice grew through the 1800s. But patronship was still a huge part of the model, slowly waning through the century. I guess I should've said less so of the 1800s...

      --
      Statistically speaking, there's a 99.998% chance that my IQ is higher than yours. Get over it.
  36. MOD PARENT UP by Anonymous Coward · · Score: 0

    Definitely worth using one of the two posts you're undoubtedly allowed per day.

  37. The bands themselves get screwed... by Whatchamacallit · · Score: 2, Insightful

    I think all the bands should get together once their contracts end to formulate a joint force against the greed of the music companies.

    The artists deserve a bigger cut. The music companies spend a great deal to promote a band and get their music played on the radio but ultimately they end up taking most of the profits and force the band into debt! They thrive on chewing up bands and spitting them out afterwards! There's a lot of talent out there but all they look for are the handful of one hit wonders they can exploit.

    If the artists could bypass the music companies and create their own music company to promote the collective bands they would be much better off. Such a collective would have to be non-profit and funded by the musicians.

    The collective would need to release music digitally for a reasonable fee. They could partner with large Internet players that can handle the bandwidth. CD's can indeed be produced rather cheaply. The need for studios to record the CD's is not as necessary as it once was. I've heard CD's produced in sound altered homes and accoustically sound structures that is as good as the professional studios. There is no need to pay thousands a day to record an album!

    Unfortunately, most bands are currently under contract with the music companies and breaking their contract would open them up to legal attack.

    The artists should not be put into debt when the music company makes 8 million in profits, spends 2 in promotion and keeps the remaining 6 million for themselves. Allowing only a piddly sum to the artists. No wonder the artists have to tour to make any money!

  38. ...most bands LOSE money touring by Anonymous Coward · · Score: 3, Insightful

    I was in bands. For many years. Some of my good friends were in bands with deals for many years.

    95% of the time, you LOSE money on the road. Remember, you don't get to keep all that money. You have to pay for food, gas, roadies, hotels, the inevitable replacement gear (when yours breaks, is stolen, or left in Missouri by the drunk-ass drummer).

    And that's assuming the venue owner decides to pay you at ALL, and not pull the ol' "how about we give you food and beer?" switcheroo.

    Often you don't get to sell CDs at your shows (often due to contractual issues). In many cases, the merchandising company makes ALL the money on your T-shirts, buttons, etc. (the band gets about 5% of "profit").

    If you're some huge band like Creed, yeah, you can make major cash. But even 1 or 2 levels down, you lose money. You have to have insurance, you have to pay the venue, you have to hire security guards...the list goes on and on.

    SUCCESSFUL bands make money on the road. But most bands lose it. And lots of it. In the "old days" (pre-internet), everyone understood that you LOST money on the road, but it served to promote ALBUM sales.

    Don't know where this myth got started about it being the other way around.

    1. Re:...most bands LOSE money touring by ebbomega · · Score: 1

      All due respect, but the topic of the article _is_ bands that go gold... I'd consider them to be pretty successful....

      The myth got started by N-Sync and the Backstreet boys etc., who would consistently say in all their interviews that they make squat on their albums, and only make money with their touring.

      --
      Karma: Non-Heinous
  39. What this shows... by mrkurt · · Score: 4, Insightful
    is who really has the most to lose and who has the most to gain where it comes to online record sales. One of these days a band is going to catch on to the fact that it might be worth their effort to try reaching people online, and sell their music direct for so much a cut or album. Let's do some math:
    1. 1 song @ $.70 x 500000 downloads= $350,000
    2. 1 album @ $7.00 x 500000 downloads = $3,500,000
    3. Amount given to the sharks at the record companies = $0
    4. Number of downloads to reach the "hypothetical" band's earnings: about 231,000 singles or 23,100 albums
    5. The satisfaction gained from knowing you didn't get screwed by the recording industry: priceless

    I think these figures are pretty conservative as to the amount of money that bands can make from online sales. I would much rather do business in this way than to do it the RIAA's way. And yes, this does nothing to touch the piracy issue, but we all know that whole Linux distros are freely available for download on the Internet; and this hasn't ruined Linux, has it?

    --
    Always look on the briight side of life! (whistle, whistle)
    1. Re:What this shows... by jratcliffe · · Score: 5, Insightful

      Problem is, the math will more likely look like:

      1. 1 song @ $0.70 x 1 download = $0.70
      2. 1 album @ $7.00 x 1 download = $7.00
      3. 499,999 copies of each downloaded from Gnutella/Limewire/etc. = priceless.

    2. Re:What this shows... by erixtark · · Score: 1

      Yes, you're right. Also remember that recorded music is not the only way to make money for a band. With a good name you can sell t-shirts, coffee mugs or some cool action figures. You can tour and with some nice equipment on the road you can sell recordings of your shows directly to the audience being there.

      This is the attention economy. There's more ways to make money in that then selling little plastic circles in record stores. Far from all of them requires a record company.

    3. Re:What this shows... by x130844 · · Score: 0

      and with what money do you record your one song?

    4. Re:What this shows... by dk.r*nger · · Score: 2, Informative
      That's about the amount I'd like to pay for music...


      1. 1 song @ $.70 x 500000 downloads= $350,000
      2. 1 album @ $7.00 x 500000 downloads = $3,500,000
      3. Amount given to the sharks at the record companies = $0
      4. Number of downloads to reach the "hypothetical" band's earnings: about 231,000 singles or 23,100 albums
      5. The satisfaction gained from knowing you didn't get screwed by the recording industry: priceless


      One thing though, you're missing bandwidth costs. No sane ISP would host such a site for free. My favorite hosting service charges $100 for 30 gb/month traffic.

      A full OGG'd cd in high quality is about 60 mb, and would cost $0.02 in bandwidth to download. Times 500K is $100.000 out of the 'profit'. Add the actual, pysical hosting (another $100/month), setup fee ($400), physical promotion (most people can 'steal' access to a photo-copier somewhere, but 4-color offset printing is a nice touch) ..

      I agree totally with your fifth point, I'm just saying that 23.100 albums is indeed very conservative.

    5. Re:What this shows... by mrkurt · · Score: 1

      You're making the case of the RIAA and the bands that have been set up as straw people for the RIAA: This assumes that everyone would prefer to freeload instead of supporting the artist in some way. It's because the recording industry and the artists who have made it to the very top of the heap are more interested in an economic security plan, that people have turned away from buying the music and instead trade it via P2P. How do a lot of bands become well-known? I am sure that file-sharing helps, and will become more important in the years to come. But a lot of people would pay to support the artists, and if they're good, they could still end up making more money than they could through a recording contract.

      --
      Always look on the briight side of life! (whistle, whistle)
    6. Re:What this shows... by BWJones · · Score: 1

      1. 1 song @ $0.70 x 1 download = $0.70
      2. 1 album @ $7.00 x 1 download = $7.00
      3. 499,999 copies of each downloaded from Gnutella/Limewire/etc. = priceless.


      This is exactly part of the problem. There are people that appear to be upstanding members of society that have no problem stealing music and software because "everybody does it", and "it is so easy and you don't have to pay for it". I have this happen at work with friends, who ask me for a copy of some music I have playing in the lab. I have to tell them no, I paid for this. But the position it places you in is awkward. Yeah, I could get music or software from Limewire as a colleague does, but I simply would not feel good about stealing. Granted the RIAA are a bunch of crooks and they are completely unaware that many of their own actions are responsible for the downturn in the music industry, but stealing is theft and I would hope that more folks would be willing to purchase their music from alternative sources rather than simply steal what they want.

      --
      Visit Jonesblog and say hello.
    7. Re:What this shows... by mrkurt · · Score: 1

      You're right about the costs, but I think the bands would still come out ahead. Remember that the cost in bandwidth for a download is a variable cost per unit, if you're pricing per each: no download == no bandwidth cost. So the economics make sense for the bands, and they would make sense for their patrons, too-- you get the music you want.

      --
      Always look on the briight side of life! (whistle, whistle)
    8. Re:What this shows... by mrkurt · · Score: 1

      Chances are, if you're starting out, it's your own money, being spent at a recording studio in your town. It's like any other business: "You pays your money and you takes your chances." Nobody starts at the top.

      --
      Always look on the briight side of life! (whistle, whistle)
    9. Re:What this shows... by Anonymous Coward · · Score: 0

      People pirate because no one is offering them what they want, at any price. I don't want a CD of 15 songs. I want an MP3 of one. And I don't want a WMA or some liquid audio junk, either. I pirate software because there is no demo, and I can't take it back if I don't like it. Yeah, I could choose not to pirate at all, and just forgo these products. But intellectual "property" is not a natural right, it's a contractual right. And I don't have any motivation to accept the contract at the moment.

    10. Re:What this shows... by TheSunborn · · Score: 1

      Why should the fact that the music was sold online change the number of sales? Any cd that is going to sell > 100.000 can be found on kazare/gnutella/whatever share the day after it is published so music piracy will not be worse. You could argue that the fact that the music was sold online would reduce the number of sold units because of "lag of exposure" but on the other hand, selling to half the price might increase the sale, and even if they only sell 1/5 the number online they would still make a good deal.

    11. Re:What this shows... by Qzukk · · Score: 1

      Nice math. Shame it doesn't actually work that way. If it did, nobody would ever have 100k CD's sold because one person would front the $12 (or whatever albums sell for nowadays) and everyone else would download it.

      Since it doesn't happen now. I see no reason to believe it would happen the way you envision.

      --
      If I have been able to see further than others, it is because I bought a pair of binoculars.
    12. Re:What this shows... by Eric+Savage · · Score: 1

      First, you're forgetting all the expenses that are still there, like recording, producing, promoting, the video, and the manager, which was a big chunk of the gross.

      But more importantly, what is this mythical album that 500,000 people paid $7.00 to download? I'd really like to know.

      --

      This is not the greatest sig in the world, this is just a tribute.
    13. Re:What this shows... by Anonymous Coward · · Score: 0

      1. 1 song @ $.70 x 500000 downloads= $350,000
      2. 1 album @ $7.00 x 500000 downloads = $3,500,000
      3. Amount given to the sharks at the record companies = $0
      4. Number of downloads to reach the "hypothetical" band's earnings: about 231,000 singles or 23,100 albums
      5. The satisfaction gained from knowing you didn't get screwed by the recording industry: priceless

      You forgot one very important item in your financials: expenses. The cost of an album is at least $10,000 just for studio time (not counting the hiring of studio musicians). This is about as cheap as it gets with many albums getting upwards of $50,000 and beyond. There is also the cost of actually producing the physical product and shipping it to your customers (postage as well as the actual cost to package and process orders). Then there are the costs of buying and maintaining your musical equipment, and the marketing costs of getting people to actually see your site (hosting and licensing fees, web development costs, finding and registering music sites to link with). Now, after all of this, remember that not only do you need to pay taxes, but you need to split your earnings four ways with the members of your band.

      That is not to say that it is a bad idea. Rather, it is not the end-all solution to the problem. Personnally, the most attractive element of Internet sales to me (as a musician) is the fact that I will not have a record label telling me what kind of music I should be writing or what kind of message I should be presenting. There is a lot of artistic freedom when you control the marketing.

      The fact is that making money is music is incredibly difficult. That is why I have a job as a computer programmer. It pays my bills while the music feeds my soul. Any money I actually make from the music is just icing on the cake.

    14. Re:What this shows... by root+66 · · Score: 1

      No, I don't think so.

      Even if I could get songs for free, I'd rather pay the artists: because I'd pay the *artists*, not some pointy haired assholes. (Additionally I'd pay the IT people that do the hosting/webshop programming, etc - another pro!)

      --
      -- I love the smell of Blue Screens in the morning.
    15. Re:What this shows... by JBhoy · · Score: 1
      Problem is, the math will more likely look like: 1. 1 song @ $0.70 x 1 download = $0.70 2. 1 album @ $7.00 x 1 download = $7.00 3. 499,999 copies of each downloaded from Gnutella/Limewire/etc. = priceless.

      Which is no more than could potentially happen anytime their CD is sold. With tools like cdda2wav or cdparanoia and any number of encoders, it's easy. Here's the difference. People who are truly interested in the band--interested enough to find their website and purchase their music online in the first place--are probably much less likely to steal from them.

      This is a psychological fact. It is easier to steal from some faceless corporation that a group of people who actually produce the product and whose music you enjoy.

      Anti-social people will always steal. The key is to make money off the majority of people who are basically honest, and who want the band or solo artist to continue to produce without paying the RIAA tax.

    16. Re:What this shows... by kendric · · Score: 1

      This is what I do. I buy CD's rarely from a store anymore, but I do download a lot of music. When I check over my list every once in a while, and I see a large number of one group, I send the group some cash. Not much mind you, but way more than they would get per CD that I would have bought. If I send a band 5 bucks, that is like buying about 100 of their CD's from a store. I feel better because my music is legal, the band feels better because they got paid (and very well!), but the RIAA doesn't like me because they don't get thier cut. But me personally, the RIAA can go to hell.

    17. Re:What this shows... by cyril3 · · Score: 1
      name me a few bands that have done this since the internet made it possible. go to mp3.com or where ever unsigned bands leave their music and ask them how much they have made. I think that those figures are pretty unreal as to the amount of money that bands can make from online sales.

      we all know that whole Linux distros are freely available for download on the Internet; and this hasn't ruined Linux, has it

      and the coders didn't get paid for that either. what is your point?

    18. Re:What this shows... by gnovos · · Score: 1

      Problem is, the math will more likely look like:

      1. 1 song @ $0.70 x 1 download = $0.70
      2. 1 album @ $7.00 x 1 download = $7.00
      3. 499,999 copies of each downloaded from Gnutella/Limewire/etc. = priceless.


      So, what you're saying is that, worst case scenario, the STILL make more money than if they went with a big label?

      --
      "Your superior intellect is no match for our puny weapons!"
    19. Re:What this shows... by mrkurt · · Score: 1

      That "mythical album" is the one that the recording biz wants you to pay $16 at Virgin Megastore. Squeeze the fatkat rekkid producers and the retail stores out of the chain, and it leaves a lot more for the artist and their patrons.

      --
      Always look on the briight side of life! (whistle, whistle)
    20. Re:What this shows... by mrkurt · · Score: 1

      Maybe this is where Linux isn't a perfect comparison to the music biz. A lot of open source projects arise from the need/desire for tools that people use in their "day" jobs. Developers may not be expecting to get paid, except maybe in the realm of prestige from having worked on a project. My point is that musicians need to be in charge of their presence on the Internet, and have an opportunity to profit from that presence-- especially those acts that are unsigned, lesser known or unknown. It's this prospect that really scares the big recording labels-- that they could be cut out of the picture altogether.

      --
      Always look on the briight side of life! (whistle, whistle)
    21. Re:What this shows... by Sabalon · · Score: 1

      Recording can easily be done at home/garage via a PC/Mac.

      Sure - there may be some hit in quality, but for the kind of people that would probably like this band, they are probably sick to death of the super-overpolished stuff coming out now anyway and want something a little more raw sounding.

      Listen to Iron Maiden's "Somewhere In Time" album - super polished, overdubs, etc... now listen to "Killers" or even "Piece of Mind". Yes...it's a clean, decent recording, but it sounds more raw, more like a bunch of guys just playing instead of 500 gizmos touching up everything.

      Oh well...that's my pitch for half-assed audigy recordings :)

    22. Re:What this shows... by Backov · · Score: 1

      Tell your "favorite hosting service" to pull their dick out of your ass.

      With the volume envisioned here, you should pay no more than about 10-15c per gigabyte, plus server costs, which you'd only need one server for that volume, it'd easily handle it.

      Cheers,
      Backov

      --
      In the law there is no overlap between theft and copyright infringement whatsoever.
    23. Re:What this shows... by Overzeetop · · Score: 1

      No, no, no... it would looke like this:

      1 song @ $0.70 list price
      minus $0.30 fixed paypal fee
      minus $0.02 percentage paypal fee
      minus $0.025 bandwidth (50MB uncomp. @ 50c/GB)
      minus $0.025 server & misc b/w cost (pages don't load for free)
      minus $0.105 15% front-end company fee (like half.com and amazon re-sales)

      Net income before hard expenses = $0.225 per song.

      --
      Is it just my observation, or are there way too many stupid people in the world?
  40. no alternative by GunFodder · · Score: 3, Interesting

    A major record label has a lot of resources that a musician needs to "make it big". They have the capital that is needed to produce albums.

    Each album can cost hundreds of thousands of dollars to record. Each music video also costs tens or hundreds of thousands of dollars. Radio stations must be paid off to get a band's singles in the rotation. And the album has to be manufactured, which costs money as well. Then the album must be distributed, which costs money and requires a business relationship that labels have and most musicians do not.

    There are dozens of bands in every city around the world that want to make it, but only a handful of major labels. This is why bands get the short end of the stick.

    1. Re:no alternative by Anonymous Coward · · Score: 0

      i don't think it costs the label nearly what they charge the band. And something like 15% off what comes in is disgusting. bands should be getting half, bottom line. Even though there are lots of labels, the RIAA seems like a monopoly. Sigh.

    2. Re:no alternative by fishbowl · · Score: 1

      It appears that the standard record deal amounts to a high-interest loan. Makes me wonder what would happen if the band comes to the a&r's table with some working capital gotten from another source.

      If the people screaming about the record label monopoly and unfair practices can prove that you can't negotiate a better deal even if you have your own production capital, there might be the start of an antitrust case. Otherwise, the only advice I can give is, don't sign. Finance your own studio time, cd manufacturing, visual art, and distribution.

      To me, the whole matter boils down to "don't count your chickens before they're hatched."

      Or even, if you borrowed the chickens, don't be surprised when the owner wants to keep the eggs.

      --
      -fb Everything not expressly forbidden is now mandatory.
  41. its not about the money by punkmac · · Score: 1

    its about the chicks

    -pM

  42. Dreams? by LongJohnStewartMill · · Score: 5, Funny

    And I bet you wanted to be a rock star when you were a kid.

    Rock Star? I always dreamed of working for the RIAA. I started young, charging my first royalty at the age of six. One day I hope to have a global surcharge named after me. That would be the ultimate bragging right.

  43. You must be 21 to enter by yerricde · · Score: 1, Interesting

    there should be a few bars that get live music

    In the United States, the option of seeing a live musical performance in an establishment that serves more alcoholic beverages than food is available only to those people who have lived outside a womb for at least 662,774,400 seconds. Virtually no high school student qualifies, and neither do more than half of all undergraduate college students.

    What do you recommend for those people who aren't 21 yet?

    And how much do those live bands have to pay their songwriters?

    --
    Will I retire or break 10K?
    1. Re:You must be 21 to enter by beerits · · Score: 2, Funny

      What do you recommend for those people who aren't 21 yet?

      A fake id.

      And how much do those live bands have to pay their songwriters?

      A lot of them write their own music.

    2. Re:You must be 21 to enter by Anonymous Coward · · Score: 0

      Find an all-ages venue. there's pleanty of good bands who will play both. Hell, here in chicago, it's not uncommon to see a band swing through once and play the Fireside Bowl (all ages) and then play the Double Door or Empty Bottle (which are over 21).

      VFWs, Fire Halls, etc.. are also availible for entraprising promoters to show-case underground music.

      And also, in my opinion, any live band who has songwriters outside the band (aside from the occasional cover) should only be seen at weddings or graduations.

    3. Re:You must be 21 to enter by yerricde · · Score: 1

      A fake id

      The law punishes those who use fraudulent IDs even worse than it punishes small-scale copyright infringers.

      A lot of [bar bands] write their own music.

      How can a songwriter make sure that he's writing his own songs and not unconsciously plagiarizing somebody else's?

      --
      Will I retire or break 10K?
    4. Re:You must be 21 to enter by demaria · · Score: 1

      Coffee bars. It's a great alternative. If you can't find a coffee shop, ask at your local Starbucks. You can always find a Starbucks.

    5. Re:You must be 21 to enter by Anonymous Coward · · Score: 0

      The law punishes those who use fraudulent IDs even worse than it punishes small-scale copyright infringers.

      As in not at all? C'mon, you only get punished if you get caught.

    6. Re:You must be 21 to enter by beerits · · Score: 1

      How can a songwriter make sure that he's writing his own songs and not unconsciously plagiarizing somebody else's

      How often do you think a bar band would be sued?
      A. As a bar band not many people will hear their music.
      B. The average bar band has a little less money than George Harrison.

  44. If It's That Bad... by istartedi · · Score: 1

    ...then why are musicians so eager to sign? This sounds like another example of people regarding the situation as crisis rather than opportunity. RIAA exploits musicians? Great! That gives you the perfect opportunity to build a distribution network that doesn't exploit musicians. You will even earn a fair profit for yourself. Can't do it? Well then, I guess it turns out that the RIAA has the best business model after all, sucky though it may be.

    Of course it's so much easier to whine, I doubt anybody will ever topple the RIAA in a way that's truly creative and fair to all parties. Why innovate when you can legislate?

    --
    For all intensive purposes, "whom" is no longer a word. That begs the question, "who cares"?
  45. Let's support the artists ourselves by Anonymous Coward · · Score: 2, Interesting

    I had an idea a while back for a sort of 'aggregated patronage' for new
    music: create a nonprofit org that runs a 'community' website. Interested
    'patrons' would pay a small fee (say $5/month) to be a member. Bands upload
    their MP3's for free, and members get to download, comment on, and rate the
    songs. At the end of every month, the band that had the highest rated song
    would be given the month's kitty: i.e. all the membership fees for that
    month, minus a small amount for hosting costs, so the whole thing is
    self-sufficient. With only a little over 1000 members at $5 a head, such a
    site would be giving out a $5000 cash prize to a band every month, and I can
    tell you as someone who's been there that this is usually more than even a
    really decent local band would otherwise make every month. Of course this
    also helps those artists like the techno types who don't get concert sales
    because they don't really play out 'live'.

    Of course, bands/musicians would love such a thing, why not upload your
    stuff and get it in the running - you'll get exposure and feedback in any
    case and you may just make some nice cash. The question is whether or not
    you could get enough 'patrons' interested. There are some incentives tho -
    like only members can download the music that's been put up there. Also,
    while the critiques and ratings could be open to the nonpaying public, you
    would of course have to be a member to actually write reviews and rate the
    music. This might appeal immensely to all those armchair music critics out
    there. Another source of members would of course be those bands who have
    entered telling all their friends to sign up so they can vote them up. While
    there's some potential for abuse there, it would be nice if every band had
    around the same number of supporters signing up, meaning the kitty gets
    bigger but the ultimate winner for the month is actually decided by a large
    number (hopefully) of 'undecided' members, i.e. those who have signed up to
    listen to and patronize new music rather than to support a particular band.

    Another incentive could be to mandate that the winner release the winning
    song under some sort of 'open-source' music license in exchange for the
    cash. This would be an incentive insofar as the Slashdot types (myself
    included) would like the idea of supporting the increase in the overall
    supply of 'free' music, while also helping out those bands that are
    open-minded enough to consider releasing their tunes that way.

    Of course, if there is interest on the 'patron' side, and enough people sign
    up, the kitty could eventually get large enough to be split into seperate
    'genre' prizes, which makes more sense: Your underground hiphop head may
    want to listen to, rate and award the latest dope offerings without having
    much interest in doing the same for the latest country-rock ditties. Ditto
    for death-metal heads vs. bubblegum pop, etc. Having a general 'all takers'
    kitty only makes sense in the beginning when there's fewer patrons and thus
    less patronage to go around. Of course, since the site software would be OSS
    (GPL'd, ideally), there would be no reason that those who aren't happy with
    the way the group votes couldn't start their own site, targeted to people
    who are closer to their own musical tastes.

    1. Re:Let's support the artists ourselves by Cerlyn · · Score: 1

      There kind of already is this for online comics. Modern Tales is an online comic site that requires you to pay to access their archives. The profits (after overhead) are then distributed amongst the artists using the site according to how often each one's works were viewed.

      There also is the concept of "premium" specialized online comic hosting. Keenspace offers such a service, as well as the ability for viewers to pay not to see advertisements (User Friendly offers this as well).

      Of course, not all online comic artists like to operate under such a scheme. Rocket Box Comics is a site created by a number of artists dedicated to keeping comics freely available online.

      In any case, if you like your "local" online artists, support them! I personally have probably sent over $200 to at least 5-7 people in order to support their site, purchase their limited-print books, etc. The best thing you can do for any artist is to support them; some artists even have set threshold where they will just work on comics full-time if they make at least X amount of money per month online.

    2. Re:Let's support the artists ourselves by MP3Chuck · · Score: 1

      It'd never work. MP3.com tried it and now they're on the verge of collapsing. MP3.com offered P4P (Payback for Playback). Put your music on MP3.com and you'll get a few cents for every stream/download made to your music. Your idea is a slightly different premise, but the end result will be the same: every kid with enough allowance money to go out to Best Buy and pick up Acid Music 3.0 will be uploading their "music" with the hopes of making a few bucks. And eventually you'll be wading through droves of prefab techno crap to find some good music. Suddenly your hosting costs skyrocket because of increased content, but your customer base isn't increasing. Not to mention that hosting costs will be high from the start. This isn't exactly something that could be run from a geocities account. So then the montly "prize" becomes smaller. Less encouragement for the musicians to get that top rating. Less promotion for the site. Lower traffic. Loss of interest. Not good. Above and beyond that, people don't want to pay for music. WHY is beyond me, except for the fact that P2P has become so commonplace that there's no remose for depriving the artists what little cash they'll be making in the first place. "CD's cost to much." $15 for an hour or so of music you can take anywhere, listen to any time, for the rest of your life. But you'll pay $10 to go see a 2 hour movie. Once. Go figure.

  46. Rock Star? by callipygian-showsyst · · Score: 2, Funny
    And I bet you wanted to be a rock star when you were a kid..."

    Actually, I wanted to be Liberace. I never made it.

  47. So.... by ToasterTester · · Score: 3, Funny

    Being I spend my first lifetime in the music business this isn't telling the whole story. They are not factoring in money from playing live. Also you know getting into the music business that you don't make a much of money in the early years of band. It take years for a band of gigging and recording to become the "hot new band".

    Also there aren't "bands" these days mainly due to economics, everything is "projects" these days. A player will be juggling schedules rehearsing and playing multiple projects and doing side gigs to pay bills, hoping one of these projects gets signed, records, and tours. It's sad that players today don't know what it was like to be a band. To grow together musically, the family of band members and supporters. I still have a lot of friends in the business and it is way to commericial these days.

  48. Sounds like free market economy to me by Skim123 · · Score: 1

    The supply is high (the number of folks that want to sign a deal) and the demand (from the record label's point of view) is low. That is, the record label will be happy to just sign a few new folks per year, a tiny percentage of the supply. Therefore it makes sense that these folks will get paid a shitty wage.

    --

    I could not justify my existence if I were a turkey farmer. Would I terminate myself? Undoubtably, yes.

  49. What about GPL licensed music? by Anonymous Coward · · Score: 0

    They should release music the same way software should be released: for FREE, with no restrictions and no royalties. That way, they will make what a GPL programmer makes on every copy of his (or her) software. To paraphrase RMS, "Music wants to be free".

    If you are a musician and want to get paid, you can always play music as a "service", eg, at weddings, bar mitzvahs, and funerals. Music should be a service industry, not a product industry. Or maybe there could be a "Musician's Tax", where the government doles out money to people who play music. Read the GNU Manifesto by Richard Stallman for more details.

    And I bet you wanted to be a rock star when you were a kid...

    And I wanted to be a software engineer....

  50. Limited time offer by yerricde · · Score: 1

    then why are musicians so eager to sign?

    Performing musicians sign contracts with record labels because the musicians do not understand the contracts. Musicians sign contracts that they do not understand because the A&R agent makes a limited time offer that expires once the agent walks out the door. Thus, if the musicians go to an attorney to have the contract explained, the offer will expire.

    --
    Will I retire or break 10K?
    1. Re:Limited time offer by schon · · Score: 1

      Musicians sign contracts that they do not understand because the A&R agent makes a limited time offer that expires once the agent walks out the door.

      Almost, but not quite.

      A&R don't get the band to sign a contract, they get them to sign a consideration note. (The offer of which exires once the A&R guy leaves.) Basically, a consideration note says "the label agrees to sign the band, and the band won't sign with any other label until the consideration note expires."

      Which sounds really great (and is why the bands sign them) - except that consideration notes never expire. The band either signs with that label, on the label's terms, or they don't sign with anyone.

    2. Re:Limited time offer by istartedi · · Score: 1

      Sheesh! That's right out of "how not to get scammed 101". Everybody should realize why "limited time offers" are bogus. 1. If the offer was worth making today, it's worth making tomorrow. 2. They want you to make a snap decision, but that violates a basic rule which is... never make snap decisions if you can avoid them, especially where money is involved. 3. If the offer was worth accepting, they would be willing to let you scrutinize the offer, but since they won't, their offer is obviously not worth accepting.

      The other, more compelling reason I think these bands fall prey to this is the "lottery effect". A handful of signed artists make a lot of money. The RIAA members, like the states and the casinos, realize something: winners are the best advertisers. For every winner, you can pull in dozens of marks. If the winner is as famous as Mick Jager, you can pull in an a virtually unlimited supply of marks.

      If I were an aspiring musician, I think I'd be inclined to look towards bands like Phish for inspiration, not musicly, but for the business model: revenue from shows + liberal bootleg policy for shows that aren't recorded = demand for recordings.

      It seems like the band could hire a sales person (or people) and pay them straight comission--say, 10% for the business guy instead of the other way around. Picture the band giving away protected teretories as door prizes at the show. :)

      After all, copyright gives the band a monopoly. Why don't they behave more like the monopolists they are? This almost makes me wish I were a starving musician, so I could ask the A&R guy if he thinks I was born yesterday, and then explain why I shouldn't bother with him.

      --
      For all intensive purposes, "whom" is no longer a word. That begs the question, "who cares"?
  51. Such as Great White? by Esion+Modnar · · Score: 1

    Just keep an eye on the exits...

    --

    They say the first thing to go is your penis. Well, it's either that or your brain. I forget which...
  52. free music by initnull · · Score: 0

    Ho ! and you think that RIAA administratives buy their music ?

  53. Touring in the 21 century by nfotxn · · Score: 2, Insightful

    A well managed and promoted tour can make a band a lot more money than records these days. I think our focus on recordings rather than showmanship and musicianship in our culture is what causes talentless hacks with lotsa money and technology to make it big. More and more musicians I know are glad to embrace their lives as part of the "minstrel class" and give up on selling obscene quantities of records.

    Works for me.

    --

    _nfotxn

  54. MTV Cribs by PaulQuinn · · Score: 1

    So tell me. If even gold selling artists take home so little coin, how come there are so many rappers and other artists on MTV Cribs that I ain't ever heard of that are showing off some serious bling-bling from green they made selling CDs?

    1. Re:MTV Cribs by aSiTiC · · Score: 1

      For me personally MTV Cribs is the most sickening show on television today.

      However, I think that most of the amazing houses/cars/etc... are actually not owned by the artist. The artists get the stuff to show off for the real owner. This way the artist looks rich and the real owner gains value on the his/her stuff. A house that is shown on MTV Cribs is probably easier for the real estate agent to sell at an exorbitant price.

    2. Re:MTV Cribs by lowe0 · · Score: 1

      Some of those people on that show own their own labels, you know....

    3. Re:MTV Cribs by Anonymous Coward · · Score: 0

      Then who can afford houses like that?!?!

  55. Doesn't add up by Anonymous Coward · · Score: 0

    The things add up until the $5,094,000 bit. After that everything is fishy and foggy and nothing adds up. What the heck is that bit about 9.99 + 800 thousand something about? Where do those 3.5 million come from? Sorry, find someone who knows how to use a pocket calculator and perhaps we can see some convincing arguent.

    Other than that, artists are reaped off, is that news?

    --
    No Account, thanks

  56. Even musicians aren't allowed to pirate by yerricde · · Score: 1

    1 album @ $7.00 x 500000 downloads = $3,500,000

    1 lawsuit from a songwriter whose publisher convinces a judge that your band stole his song = -$500,000. Even musicians aren't allowed to pirate, even if they don't know they're pirating.

    --
    Will I retire or break 10K?
    1. Re:Even musicians aren't allowed to pirate by Anonymous Coward · · Score: 0

      So don't steal songs!

  57. Just to draw a parallel (OT) by sisukapalli1 · · Score: 1

    This shit happens whenever there is a "middleman".

    How is the recording artists' story any different from that of techies? The contracting companies pim^H^H^Hcontracting techies to big companies while taking a big share of the billing rate exactly do the same.

    Even more eerie similarities... just as the music industry churns out whatever is available to them and package it as "the best of the breed", these guys also package whatever people they can get and project them as the best of the breed.

    The notable difference is that the music bands get screwed by the recording companies AND the groupies, whereas the techies get screwed only by the contracting company alone.

    S

    1. Re:Just to draw a parallel (OT) by Anonymous Coward · · Score: 0

      I know several consulting companies in Los Angeles that pay their slaves ^h^h^h^h^h employees/engineers $13-$20 / hour (max 40rs / week) and require that at least %30 of the time on the timesheets be billable hours.

      They bill the clients at $180/hour, min 2hrs; not including travel time.

      [one customer of theirs got a ~$350 labor bill when all they needed to do was update the memory and flash on a cisco 2600 router. ~ 15-20 mins work]

      yet they are barely making it according to them{both places may layoff at least one of their "engineers" and part of the "support staff"...}

  58. Perspective from a major label musician. by glowfish · · Score: 5, Interesting

    I put out a record on a major label recently. Just finished a sold out tour of the west coast a week or two ago.
    I have these thoughts:
    1. The article is totally accurate.
    2. Anybody who thinks successful musicians make it back in touring or merchandise is A COMPLETE IGNORANT IDIOT. Once you get close to going gold this might be true, but as the article pointed out, this happens to 138 of 30,0000 records.
    3. My sold out tour of the west coast was the first profitable tour in almost a decade of touring. I made $80 a day once the profits were tabulated.
    4. Merchandise sales are not major sources of revenue, but they help stem the bleeding. Less then half of that $80/day was from merchandise.
    5. One word: EXPENSES. It's not just the money you get. It's also the money you pay out. And touring is expensive. Don't be one of those assholes who says "ah but the bands make it back from tours and merchandise"
    6. A shitty sys-admin can do $30-40k a year.
    7. A top notch musician who has practiced most of their life and given countless sacrifices for their job and has gone gold will do about the same.
    8. A top notch musician who hasn't gone gold will be broke.
    9. A shitty musician will be in debt.
    10. Mama don't let your baby's grow up to be musicinas.

    1. Re:Perspective from a major label musician. by flaquito · · Score: 1

      If you're not making a boatload of money on a sold out tour of any variety, then you're doing something horribly wrong. I've been doing it for a few years, and it's safe to say, most of the shows haven't been sold out but I'm making nearly as much now as I made as a full time DBA four years ago. Revenue - Overhead = Your money. Revenue at small clubs is small, but so is overhead. Making money on tour is all about controlling your expenses. Do you really need that tour bus?

    2. Re:Perspective from a major label musician. by glowfish · · Score: 3, Interesting

      There was no tour bus.
      There was a van we rented from a friend for $30 a day. We slept five to a hotel room, and stayed with friends on two of the 9 nights. We brought no tour manager or sound person. We had a friend who helped out with stuff for per diems ($10 a day) only. How's that for low overhead?
      We were gone for 10 days. We did around $7000 in cash (generally small to mid size clubs - largest payday was $2k). After paying for the van, gas, hotel, per diems, strings and other equpiment, booking agent (15%), and other etc. we netted $3200. Split 4 ways that was $800, or $80 a day.
      I'm interested in how you are setting things up to turn a profit. Please feel free to email me details. I could stand to learn a trick or two.

    3. Re:Perspective from a major label musician. by jalet · · Score: 1

      Slavery ?

      --
      Votez ecolo : Chiez dans l'urne !
    4. Re:Perspective from a major label musician. by warpath · · Score: 1
      2. Anybody who thinks successful musicians make it back in touring or merchandise is A COMPLETE IGNORANT IDIOT.

      [...]

      Don't be one of those assholes who says "ah but the bands make it back from tours and merchandise"


      Wow. Get a groupie to give you a backrub or something, man. You seem a little tense.
    5. Re:Perspective from a major label musician. by ralphclark · · Score: 1

      You had a rented van? and a hotel room? Bah! when I were a lad on tour, we all had to share a hoop and a stick between us! And after the show we had to sleep in it!

      I remember after one particularly exhausting show, on the last night of that tour: we all trudged out to the parking lot only to discover that some thieving bastard had stolen our hoop and stick. Damn!

      Poor Mick, our drummer, was rather tired and this was just the last straw for him. He just burst into tears and wailed "How the hell are we going to get home?".

    6. Re:Perspective from a major label musician. by Anonymous Coward · · Score: 0

      that's tough to call folks assholes who think bands "make it back from tours". it's a dynamic market out there. what about touring, growing a fan base to the point where people actually want your music and will support you? the music industry has it backwards. they'll sign a little known band, pump resources into the project in the hopes of getting a return and many fail. my favorite bands growing up were unsuccessful in terms of CD sales but very successful touring. their mode of distribution was similar to a GPL to widen their audience or 'turn people on'. they allowed taping, or as it's known to copyright folks...bootlegging. Phish and the Greatful Dead, two hugely successful touring bands with no tour sponsors who make plenty of money.

    7. Re:Perspective from a major label musician. by Anonymous Coward · · Score: 0

      $80 a day from a sold out tour? You're getting seriously ripped off. Do the clubs you're playing in only hold 100 people?

    8. Re:Perspective from a major label musician. by glowfish · · Score: 1

      Midsize clubs 200-400. And no we didn't get ripped off. It's just expensive to tour, even if you do it dirt cheap. Which is my point.

    9. Re:Perspective from a major label musician. by Animats · · Score: 1
      I've been doing it for a few years, and it's safe to say, most of the shows haven't been sold out but I'm making nearly as much now as I made as a full time DBA four years ago.

      That's success?

    10. Re:Perspective from a major label musician. by flaquito · · Score: 1

      If you like getting to do what you want for a living and still earning a comfortable wage, then hell yes! :)

    11. Re:Perspective from a major label musician. by Anonymous Coward · · Score: 0


      6. A shitty sys-admin can do $30-40k a year.
      7. A top notch musician who has practiced most of their life and given countless sacrifices for their job and has gone gold will do about the same.
      8. A top notch musician who hasn't gone gold will be broke.
      9. A shitty musician will be in debt.


      I guess this is why so many sysadmins i
      know play music!

  59. The songwriter? by yerricde · · Score: 1

    The collective would need to release music digitally for a reasonable fee.

    Such "reasonable fee" would need to include at least eight cents per track to pay the songwriter, correct?

    --
    Will I retire or break 10K?
    1. Re:The songwriter? by Anonymous Coward · · Score: 0

      So what?

    2. Re:The songwriter? by Anonymous Coward · · Score: 0

      Just making sure all bases are covered so that nobody suggests a ridiculously low fee such as ten or twenty cents per track.

  60. I've Posted This Before... by zentec · · Score: 2, Insightful

    If you do not like the way a business conducts itself, then don't patronize the business.

    That means if the entertainment industry cheeses you off, then you quit buying CDs, DVDs and stop listening to music radio. You then tell your friends why they should be doing the same thing.

    Consumers in this country hold the purse strings. Stop complaining and vote with your dollars.

    This also works for those of you upset over the outsourcing of employment to other countries. TELL those companies why you refuse to do business with them each and every time they approach you for your hard earned dollar.

    Remember, you hold the purse strings. Of course, it's easier to moan about it on Slashdot and exchange goatse trolls rather than taking a stand on an issue in which you believe. I mean, you *can't* possibly live without your tunes, right?

    1. Re:I've Posted This Before... by praksys · · Score: 3, Insightful

      Stop complaining and vote with your dollars.

      It is not an either/or proposition. People should keep complaining and vote with their dollars. In fact it is pretty importatnt that people do both, because if they just vote with their dollars then the music industry will continue to pretend that declines in revenue are due to piracy. We need to complain long and loud so that everyone knows the real reason - poor quality products combined with an unrelenting series of legal attacks on their own customers.

  61. Two words: Plagiarism Lawsuit. by yerricde · · Score: 1

    There's no law against starting your own label

    Yes there is. If you're not an established label, how are you going to survive lawsuits from songwriters who claim that your recording artists plagiarized their songs?

    --
    Will I retire or break 10K?
    1. Re:Two words: Plagiarism Lawsuit. by Anonymous Coward · · Score: 0

      If you're not an established label, how are you going to survive lawsuits from songwriters who claim that your recording artists plagiarized their songs?

      Join the RIAA?

    2. Re:Two words: Plagiarism Lawsuit. by Anonymous Coward · · Score: 0

      If you're not an established label, how are you going to survive lawsuits from songwriters who claim that your recording artists plagiarized their songs?

      Don't plagiarize.

    3. Re:Two words: Plagiarism Lawsuit. by yerricde · · Score: 1

      Don't plagiarize.

      OK, so what's your foolproof method to avoid plagiarizing?

      --
      Will I retire or break 10K?
  62. Heh? by Esion+Modnar · · Score: 1
    The era of free music -- as it was in the 16, 17, and 1800s -- will once more be upon us. Recorded music will be free...

    Umm, there was recorded music in the 1600's? Wow!

    (sorry, couldn't resist, please mod me down as a smartass.)

    --

    They say the first thing to go is your penis. Well, it's either that or your brain. I forget which...
  63. Too many "They make money touring" comments by Mononoke · · Score: 4, Insightful
    Bands do not make big money touring.

    Bands do not make big money touring.

    Bands do not make big money touring.

    Sure, they make a living sometimes, but most of the time they don't.

    Band's tour for two reasons: They love to play music, and they want to promote the sales of their albums.

    Tickets cost $200 sometimes because people are willing to pay it. If you can sellout a show at $20/ticket, then why not charge $30 (etc. etc.) and it grows from their. The money just gets spent making the show bigger, brighter, and louder.

    The costs for putting on a concert are staggering. Just the local labor alone can be as much as $10,000 (or more) for an event. It costs $2/mile/truck to send the show down the road. Each truck. Each bus.

    Why do you think some bands accept corporate sponsorship for their tours? Many (well-known) bands would lose money trying to tour if they didn't have the sponsorship money.

    Merchandising? By the time the venue gets their 20%; the sales company gets their cut; the designers, manufacturers, etc. get their cut, there isn't much left for the band.

    --
    NetInfo connection failed for server 127.0.0.1/local
    1. Re:Too many "They make money touring" comments by flaquito · · Score: 1

      I make my living touring. Record sales have never been great, but we survive because we tour. We live pretty comfortably too. That's it, just touring. As for corporate sponsorships, bands take them because they are greedy. We've done it a few times, because the cash is nice, but in the end, it really turns people off. Selling your dignity costs you karma AND money in the end.

    2. Re:Too many "They make money touring" comments by Anonymous Coward · · Score: 0

      hey if theyre making millions youd think they could put on a nice show for $10, but instead they make us pay for the tour too.

  64. Self-Publish or Perish by Master+Bait · · Score: 2, Interesting
    I've been associated with the book publishing business for more than 10 years. Self-publishing has been thriving even though the toughest nut to crack is distribution.

    I think that any band that signs up for a recording contract is committing suicide. How come so many bands won't think outside of the limited, furmula-based, corrupt BOX of expensive studio time, expensive post production, expensive MTV videos, expensive kickbacks to radio stations, expensive lame coreography, on-stage fireworks, etc. etc?

    Compared to publishing your own books, quality recording, mastering and pressing 1,000 CDs or so to start is extremely cheap. Literally chicken feed. We've been enabled by computer tech which should have put the big studios out of business by now. Distribution is widely available compared to what the struggling self-publishing author faces in the book industry.

    Maybe it is simply a question of aesthetics, but I'd rather listen to a straight-on live/studio without stupid 'major label' sound effects and extreme overdub overlayed. A good band can make good money selling their CDs at concerts, websites and through the many distributors. Musicians must think outside the box and drop the MTV videos and fake-sounding, expensive post production.

    Out of the box means a band sells a high-quality recording of them performing their music. No record company is needed for something so simple. Courtney Love finally got free from her record contract, didn't she?

    --
    "Only in their dreams can men truly be free 'twas always thus, and always thus will be."
    --Tom Schulman
    1. Re:Self-Publish or Perish by Art+Tatum · · Score: 1

      But it *does* cost a lot to employ 160 musicians and the large studio with experienced recording engineers to record them. Sure, if you're talking about your average greasy teenagers in a garage making squealing sounds with amps, it's cheap as hell. Techno or Rap are cheap too. But when you start writing real music for large ensembles, it can get very expensive to record and produce.

    2. Re:Self-Publish or Perish by waspleg · · Score: 1

      i don't seen an email address so i'll just post here, i was wondering how difficult it is to write and get published and whatever insights you might have to offer would be appreciated, thanks

    3. Re:Self-Publish or Perish by The_dev0 · · Score: 1
      Exactly. The band i'm involved with (check out the link under my name)decided early on in the piece to keep the money close to home. The band members and friends all threw in and we bought a second hand printing press (do all our own flyers and inserts, as well as make a bit of coin back doing work for friend's bands), a mass CD burner thingy that lets us press our own CD's, and screenprinting stuff (we can do all our own merchandise as well as custom stuff and screenprint CD graphics, as well as do a bit of work on the side for money).

      Most of our sales are at live gigs, and we make a point of swapping a few CD's with every band we play with, adding their CD's to our stock on sale at the merch stand, with them doing the same for us at their shows. Most of our marketing is done online or through trading similar services with other bands. It's a little different, because the australian hardcore punk scene is a pretty close-knit family, but soon you work out that you can actually make money without being signed at all. The bands themselves are networking together to help each other out, no labels needed.

      --
      Never fight naked, unless you're in prison...
    4. Re:Self-Publish or Perish by Master+Bait · · Score: 1

      I say you should check out Dan Poynter the Ron Popeil of self-publishing.

      --
      "Only in their dreams can men truly be free 'twas always thus, and always thus will be."
      --Tom Schulman
  65. What's Wrong With That? by reallocate · · Score: 1

    What's wrong with the music companies taking the cost of touring, recording, distribution and advertising from the revenue earned by an act? How else are they supposed to pay for it? It's a business, not a donation to the arts/

    Musicians sign those contracts because they want to make money. What's left over after all the costs are paid is profit. Don't confuse that with the revenue generated by product sales.

    People need to stop idealizing musicians and demonizing the recoding industry. They exist in a symbiotic relationship because both want to make money.

    --
    -- Slashdot: When Public Access TV Says "No"
    1. Re:What's Wrong With That? by BWJones · · Score: 5, Insightful

      What's wrong with the music companies taking the cost of touring, recording, distribution and advertising from the revenue earned by an act? How else are they supposed to pay for it? It's a business, not a donation to the arts

      The problem is that the companies take their profits first before costs are taken out. If the system were truly fair, record companies would take their profits with the artist at the end of the day when all costs have been calculated. Yes, it is a business and the record companies deserve the right to make a profit on investment, but would you want your investment company taking their profits before costs were calculated? The folks that manage my portfolio take 1.5% of the portfolio value at the end of each quarter, not at the beginning of the quarter, therefore their income is dependant upon the performance and my costs to them are based upon mutual growth. Not bleeding the portfolio dry.

      --
      Visit Jonesblog and say hello.
    2. Re:What's Wrong With That? by reallocate · · Score: 1

      I suspect that the recording companies would reject the analogy to investment firms and argue that relatively few acts ever make a profit, so they have every reason to take their profits when they do. While the musicians may see themselves as "artists" with little interest in the mundane work of marketing, promoting, distribution, etc., someone must attend to all that if those musicians are to rise from street-corner invisibility.

      If musicians don't want companies to take profits when they do, they can pay for all that themselves up front.

      --
      -- Slashdot: When Public Access TV Says "No"
    3. Re:What's Wrong With That? by jjon · · Score: 0

      The folks that manage my portfolio take 1.5% of the portfolio value at the end of each quarter, not at the beginning of the quarter, therefore their income is dependant upon the performance and my costs to them are based upon mutual growth. Not bleeding the portfolio dry.

      And the difference between "end of quarter" and "beginning of quarter" is what exactly? 24 hours? If they *really* wanted to get paid "dependant upon the performance" then they'd take a percentage of the *growth* in your portfolio, not the total portfolio value. And if they lost money then they'd repay you the same percentage of that. LOL.

    4. Re:What's Wrong With That? by nlvp · · Score: 1
      It's about at which point the profits are calculated. If the band gets an alleged 15% royalty after all costs, then they'd have a decent cut, instead the distribution of "profit" is a far cry from 15% of retail.

      The band was made to pay for all the costs of recording the music, if this business model were to be made efficient, you'd have labels owning studios and using the economies of scale they can get from using the same studio for all of their artists to improve the lot of all the participants in the deal. Instead, every cost is passed on - fully loaded - to the artists, and all the label really did was lend them $300,000 at an exorbitant rate of interest.

    5. Re:What's Wrong With That? by prgammans · · Score: 1

      ... recording companies would reject the analogy to investment firmsand argue that relatively few acts ever make a profit

      But lots of bussines don't make money too. It a gamble or should i call that a calculated risk.

      If lots of their bands don't make money don't sign them, Sign the ones that do. The music company will need to get good at finding bands that make money.

      Now the down side of this is then the music corps will only give us tried and tested music, but where the change there?

    6. Re:What's Wrong With That? by out_sp0k1n · · Score: 2, Interesting

      No, the problem is that the success of the music industry is based on everyone believing it in its success.

      Its obvious, but everyone buys the albums everyone else buys, so only ~128 bands get to make *good* money, and only a few of them get to make a *lot* of money. So the profits of the recording companies and their superstars comes at the expense of everyone else in the industry making a *living*.

      Of course, it isn't the fault of the recording industry that we're all so damn stupid.

    7. Re:What's Wrong With That? by silentbozo · · Score: 1, Interesting

      The problem is that the companies take their profits first before costs are taken out.

      That's known as industry standard practice, and it's common practice in the movie business also. But there's no point in bitching about it - if you don't like those terms, negotiate better ones, or don't sign the contract. As monolithic as the movie/music businesses are, you CAN make a living outside the system if you choose to. If you choose to work inside the system, then you live with this kind of shit if you're new, and hope to get enough leverage at some point to get a better contract. Remember, there's no law against accepting a contract that's not in your best interests.

      Just a word of advice: You ever hear that no film ever makes money? It's true - everything possible is written off against a film, so there's literally no net (money after expenses and fees) left. That's why if you're smart, you always ask for a cut of gross (total profits before expenses), or cash upfront. NEVER ACCEPT A CUT OF NET! 50% of nothing is still NOTHING. Of course, if you're trying to get people to invest in your film, what are you selling? Why, a cut of the net, of course!

      The music/movie businesses aren't like everybody else accounting and contract-wise. They've been playing with money for a very, very, very long time. To them, Enron and Worldcom were run by a bunch of amateurs...

    8. Re:What's Wrong With That? by Samrobb · · Score: 3, Interesting
      I suspect that the recording companies would reject the analogy to investment firms and argue that relatively few acts ever make a profit, so they have every reason to take their profits when they do.

      But of course, that's the point. If they didn't take their profits when they do, then many, many more acts would be profitable... but the recording companies wouldn't make quite as much money, and (heaven forbid) would actually have to take on some amount of risk along with the band.

      As things stand, the recording companies structure deals so that they always make a profit, no matter what. To the recording companies, an "unprofitable" band is one that they do not have to pay any money. See the small problem here?

      --
      "Great men are not always wise: neither do the aged understand judgement." Job 32:9
    9. Re:What's Wrong With That? by homer_ca · · Score: 1

      "What's wrong with the music companies taking the cost of touring, recording, distribution and advertising from the revenue earned by an act?"

      They're charging all these expenses against the band's 10-15% royalty and pocketing the rest for themselves (minus the retail markup). That's like telling a salesperson he gets a 10% commission on sales, but you deduct rent, phone and any other misc expenses off his commission check.

    10. Re:What's Wrong With That? by reallocate · · Score: 1

      I don't see the difference between what you assert is the recording industry's model and that of the company your salesperson works for. Both have made a determination about how much money they will pay the people who work for them, after accounting for costs. Whether or not those arrangements are seen as "fair" by some people is not especially relevant.

      Perhaps the problem is that musicians who contract with recording companies don't understand that they're now working for that company, not themselves.

      --
      -- Slashdot: When Public Access TV Says "No"
  66. rock stars almost never get rich by Anonymous Coward · · Score: 0

    Heck, who was the clown for the Bay City Rollers, who got busted for child porn in England? At the time of his arrest, he was flying bedpans on the night shift in a rural hospital.

    The folks who get rich are the songwriters who hang on to their music rights, the session musicians, and some producers.

    An old timer like David Gates, who's in his early 60s and has his health and sanity, hung on to his music, is rich. The Wrecking Crew (Blaine, Osborn, Knechtel) is rich. Patsy Cline and LeeAnn Rimes were screwed out of their earnings.

    Leon Russell did OK.

    The guy who did Everyday People (the Toyota ad, Smokey Robinson?) is a crack whore living in the gutter. Michael Jackson owns the rights to EP, earned millions from Toyota, gave the songwriter zip.

    It's a cruel business.

    1. Re:rock stars almost never get rich by Anonymous Coward · · Score: 0

      >The guy who did Everyday People (the Toyota ad,
      >Smokey Robinson?) is a crack whore living in the
      >gutter.

      Uh, that would be Sly Stone (nee Sylvester Stewart), of Sly and the Family Stone.
      He did have some legal problems related cocaine possession, but I wouldn't call him a "crack whore". On the other hand, anyone who lives within a hundred miles of LA is definitely in the gutter, even though some of them obviously think they're living well...

  67. Band Making Money by funkapotamus · · Score: 1

    The thing that this, and most of, these articles leave out, is that most musicians make their money off of PUBLISHING ROYALITIES for their songs, not RECORD ROYALITIES from sales of their albums. A very crucial step was left out from the equation. There are also other sources of revenue that can be found. This article is not nearly a full picture of recording revenues.

    1. Re:Band Making Money by Anonymous Coward · · Score: 0

      Not the band. THE WRITER.

      Big difference.

      Either it means that ONE (maybe two) of the band members are making money off publishing royalties (provided they didn't sign away their rights in the contract, which happens often enough), or it means that NONE of the band members are making money off publishing royalties, since the songs are written by some record-label producer/writer-honcho. This is the case with most all of those artificial pop bands/"artists".

      The musicians/performers get peanuts, if at all.

      -spheric*

  68. Anyone else do the math? by blair1q · · Score: 2, Interesting

    They actually got paid $1.2 million. If they could find a cheaper way to operate (get rid of the manager, produce the record themselves, not spend $200K on studio time, pay their lawyer a flat fee instead of a percentage, etc.) they could keep the $1.2 million. Their lawyer should also have negotiated that the royalty was on the retail gross, rather than any sort of net. The royalty should reflect the popularity of the music directly, and not any machinations of the production process.

    And if I wasn't hungry, I'd show you how the newspaper managed to double-count for some of the money, and lose some elsewhere, but it'd take a spreadsheet.

    Bottom line, rock stars are dumb for thinking they're only making $40K on a gold record.

    1. Re:Anyone else do the math? by xigxag · · Score: 2, Insightful

      I agree, somewhat. Basically what this article is saying is that they have $40K left over in spending money after every possible deduction has been taken.

      Doesn't sound like much, but the average person, after payroll taxes, transportation costs, food, work equipment, repairs, and other necessary incidentals, is likely to be left with closer to $4K in their pockets. Plus they are usually stuck doing a job they hate, without the free booze, pot, sex and limo rides.

      Really, although people unreasonably romanticize the amount of wealth it will generate, being a rock star isn't such a bad gig. You don't see too many successful musicians walking away from their careers to go wait tables.

      --
      There are two kinds of people: 1) those who start arrays with one and 1) those who start them with zero.
    2. Re:Anyone else do the math? by schon · · Score: 1

      Their lawyer should also have negotiated that the royalty was on the retail gross, rather than any sort of net.

      And exactly how is their lawyer supposed to do that?

      If you believe that an unsigned band is in any way able to negotiate terms, you need to learn more about how the industry operates.

      By the time a band is "negotiating" a contract, they have already signed a note of consideration, which means that they're have two options:

      1. Accept whatever terms the label demands, or
      2. break up.

      You should read the Steve Albini article (posted in various places throughout this discussion), or the Courtney love one (basically the same thing.)

    3. Re:Anyone else do the math? by blair1q · · Score: 1

      3. Say they'll go down the street to the competing label.

      What a country!

    4. Re:Anyone else do the math? by shdragon · · Score: 1

      They can't go to a competing label as they have already signed a note of consideration in essence guaranteeing that they will sign with that label. So , the grandparent poster is correct; sign up with us or break up.

      --
      "...we dont care about the economics; we just want to be able to hack great stuff."
    5. Re:Anyone else do the math? by Anonymous Coward · · Score: 0

      Who will gve them exactly the same craapy terms. The major labels have been working with a standard contract for years.

    6. Re:Anyone else do the math? by blair1q · · Score: 1

      Then the lawyer is a superfluous expense. Or not. If the label doesn't want to deal fairly, fuck the label and go elsewhere. Or get a new lawyer.

    7. Re:Anyone else do the math? by MisterMook · · Score: 1

      If you've decided that you've got to deal with hungry reef sharks to make your beer money then it doesn't matter which island you park your boat at, they're all equally hungry and equally dangerous. On the other hand, if you operate on the assumption that you're screwed no matter what and don't hire basic protections then you deserve to get eaten.

  69. Re:It sure has... by symbolic · · Score: 1

    I've said it many times, and I completely support this effort (I practice what I preach, too). Because it's all about money, money is the only thing that will affect any real change. The absence of money (in the form of revenue) will be the only real influence that will change the current situation. I wouldn't worry about supporting your favorite artist, because all you're really doing when you buy RIAA-backed music is supporting their crack dependency (the reference to crack is a reference to the RIAA itself). Stop the cycle. Stop buying, and stop pirating. Support local shows and local distribution.

  70. Drivin' n Cryin'. by The+Ape+With+No+Name · · Score: 1

    once upon a time, i lived next door to one of the members of drivin 'n cryin

    If you see Kevin,tell that bastard to gimme my water bong back. Well, I should never have trusted him anyway! You know how marginal rock stars can be.I guess I am just scarred but smarter....

    --
    Comparing it to Windows will be a moot point, since El Dorado is going to have a 40% larger code base than XP.
  71. Revenge of the nerds.. Part 1 by t0qer · · Score: 1


    Recently on slash we had an
    article
    about why nerds are unpopular. My super duper +5
    comment
    basically made the argument that there was two kinds of nerds, social butterfly
    nerds, and the social outcast nerds. Read my comment for the whole
    explaination..


    The music industry is run by the popular crowd for the popular crowd.
    Musical talent is irrelevant because of all the studio mixing that can be done
    these days. Basically anyone can sound like what the RIAA can put out.
    The RIAA is more than just records though, they are the pep rally at your high
    school, they take the people who are most outrageous, ill tempered, and idiotic
    and put them on display as a way of saying WTF is a matter with you, if this
    idiot can be a star so can anyone!


    That's the problem though, it's not just popularity that makes something
    good it's talent, hard work and dedication that makes it good. For the last
    100 years American society has downplayed quality over popularity in everything.


    Now things are changing, the nerds are rising up against their oppressors,
    and they are scared they are losing their power. Through a few lines of code, we
    have basically destroyed their industry.


    The next 100 years of music is going to look radically different than the
    last 100 years. Music distribution will DIE. Music stores will die,
    everything that was once a huge industry for popular bullies on campus is
    useless now, because when it comes down to it, do you want a stack of 100 cd's?
    Or would you rather have them all on 6.5 gigs of hard drive space that can fit
    in a shirt pocket?


    If you claim to love what you do money becomes irrelevant. I don't
    make what I used to in tech, but I love it so much that doesn't matter.
    Despite getting paid next to nothing to be a webmaster, IT guy to 2 different
    jobs, it's what I love doing, so I got a 3rd job as a bouncer on Friday nights.


    And if you're truly a musician, money isn't what it's all about. It's about
    hanging out with your buddies or by yourself, maybe taking bonghits and trying
    to find some new sound out of your instrument. Personally, i'm not a musician,
    but working for zero magazine, I know plenty of them, they take side jobs to pay
    for what they love. I know guys that will sit there practicing their
    guitars for 5 hours a night until their fingers turn into hamburger.


    No it's not fair what the record industry is doing to the musicians. But like
    I said in the title of this post, we're going through the revenge of the nerds
    period in human society now, prepare for the uprising of the minds has begun.



  72. Check out King Crimson's attitude by sdprenzl · · Score: 1

    ...at Discipline Global Mobile. Fripp et. al. has plenty to say about the "industry" and how actually wound up in the hole even when Crimso was (and still is) one of the world's most progressive virtuoso combos. I say death to the RIAA and all the conventional rip-off organs of the "music industry."

    --
    --- WWSD? What Would Strider Do?
  73. Music is also in trouble on Broadway... by daveq · · Score: 2, Insightful

    The hottest cats in New York can't get gigs anymore. It doesn't help that Broadway producers are trying to reduce the number of music jobs by replacing live musicians with "virtual bands." Visit Save Live Broadway.

    It doesn't matter if you play in night clubs or Carnegie hall -- this is a tough time for musicians.

  74. Respighi is rarely performed in bars. by emil · · Score: 1

    There is a great deal of music that just doesn't fit in a small performance hall. The stuff that I like is fringe, and most of it has 20+ individual performers per disc.

    It's great when a musical arrangement can fit within the constraints of a bar, but a lot can't.

  75. why do bands make little profit? they're suckers. by hxnwix · · Score: 3, Insightful

    I'm trying to think of another industry where the employees are given loans or are required to make initial investments and usually end up screwed. Hmmm... where else does this happen... In what other industry are the guys on the bottom so braindead they participate even though it's common knowlege they'll get the shaft?

    Amway? Herbal Life? Yeah.

    This nation is capitalist and if you are too stupid to ensure you are properly compensated for your efforts, you are giving work away for free. In this case the fools are giving it to record labels, and that's fine with me. When I buy something it's because I'm paying what it's worth too me. If the wrong people profit, too fricken bad... I still get what I want.

    And you can't say "well people buy crappy music, thereby supporting an artificial economy perpetuated by marketing!!!" IF PEOPLE BUY SOMETHING THERE IS A MARKET FOR IT GOD DAMN IT! And if under the current system no music is produced that anyone wants, the system wont continue existing, now will it? Theres a reason labels continue to profit and it has nothing to do with them being bastards. Nearly everyone acts selfishly. The industry produces a product people apparently want and the competition to be an employee is so intense they aren't obligated to pay fairly.

    Labels are trying some legislative things to prop themselves up (and they have the right to do so), but democracy has a solution for that: dont vote for the industry's lackies. And if they still win then the people seem to want the industry supported by laws. If you dont like it, too bad.

  76. one sided by silicongodcom · · Score: 2, Insightful

    Artists never make money from the album. Nothing has changed. It's their merch, their ads, and their concerts

    I know one barely platinum band that got paid $80,000 to play one concert. After payouts and taxes they each left with about $6,000 for ONE NIGHT.

    also, when a band sells a lot of albums (500k, 1m etc), they get more money from the label and publishing (where most of the money is)

  77. More money? by Stalyx · · Score: 2, Interesting
    One word "commercials"... I wonder how much money Ricky Martin or Britney Spears got for doing the Pepsi commercials. I suppose thats one way of supplementing their incomes....

    On the other side of the coin.. how many artists actually do a lot of commercials?? I am sure there is a rather large majority who do not get the lucrative sponorship deals.

  78. Avoiding "songwriters outside the band"? by yerricde · · Score: 1

    any live band who has songwriters outside the band (aside from the occasional cover) should only be seen at weddings or graduations.

    It's possible to having songwriters outside the band without knowing it, if the songwriters inside the band unconsciously plagiarize a popular song. So how can a live band prevent itself from inadvertently having songwriters outside the band?

    --
    Will I retire or break 10K?
    1. Re:Avoiding "songwriters outside the band"? by Anonymous Coward · · Score: 0

      I hardly think borrowing a chord progression or snippet of melody counts as copyright infringement, and I'm pretty sure (haven't gone through and read the actual statute lately, but I'll check again if I have time) the law would agree. It's whole-sale theft that they're worried about. Besides, do you have any idea how widespread the use of the I-IV-V progression is?

      accidental theft isn't at all a concern here, nor having accidental outside songwriters.

  79. Re:Negotiating Position, Doh by frovingslosh · · Score: 2, Insightful

    Because a few companys control distribution and collude with each other to keep these deals so unfairly slanted towards them. The also conspire with each other to fix prices artifically high. If the consumer, who has a complete choice of buy the music or not, can't deal with the RIAA cartel, why would you expect a band that has to choose between take their deal, starve, or get out of the industry, can?

    --
    I'm an American. I love this country and the freedoms that we used to have.
  80. Re:Two words: Clear Channel by nick_davison · · Score: 4, Informative

    Go see live music. If you live in a city larger than 50,000 people, there should be a few bars that get live music. Go see them. If you like them, buy their music. No record company required. No inernet piracy required. Just good music.

    Thanks to the joys of deregulated radio...

    Clear Channel owns the air time.
    Clear Channel owns the play lists.
    Clear Channel owns the concert venues.
    Clear Channel owns the concert promotion.
    Clear Channel owns the ticketing companies.

    So, unless you want to play in a bus shelter, unadvertised, playing songs that no one has ever heard of, guess who makes all the money?

    Why do you think all those radio stations that sound exactly the same as each other have exactly the same bland "Front Row Seats!" competitions, the same bland "Sold Out Seats!" competitions and the same bland DJs who're supposedly on "Hard Rock" stations giving out tickets to go and see Britney Spears with them at the same three venues as every other gig you ever hear about? Clear Channel owns the entire chain from start to finish, nationwide. Even when there is a chink in their defence, the artists all know damn well that if they dodge Clear Channel in one city, they'll be blacklisted from every other one across the nation.

    Everyone criticises the RIAA on slashdot. After all, they're the evil monopolies, making all the money at the artists' expense. The problem is, to get their product out, they have to deal with a monopoly. I'm not defending them but they're also not making money hand over fist either - not because of piracy but because Clear Channel squeezes every last penny out of music, shoe-horning it in to an easy to sell, nationwide generic sludge. Bad as the RIAA are, perhaps it's worth going after the real culprits.

  81. work for hire by g4dget · · Score: 1

    Yes, I somehow don't understand why "artists" get away with claiming that the music or books they create are not "work for hire", while software development pretty much always is considered that, no matter how innovative it may be. The attitude by many musicians, visual artists, and writers that they are "the creative people", while software professionals are "just engineers" is also kind of annoying. But maybe the solution to that is for software professionals to become more vocal.

    1. Re:work for hire by Eskarel · · Score: 1
      I think there's some accuracy in that, not to say that all music types are creative types, or that by any stretch of the imagination that software types aren't(though the creativity is different), but the nature of the work is somewhat different.

      Most of the instances of software development are "work for hire" in the sense that the company has an idea for a product they want to develop and much of that product has been mapped out and planned. Musicians for the most part are given much less direction as to exactly what is supposed to come out and many have created their own styles to begin with.

  82. The good news is... by skurken · · Score: 1

    ... even if the entire music _industry_ goes bankrupt and dies, people will still be creative and make new music. I might not even be such a bad idea if the CD-labels did go down, as it might make way for something new (or something old, like the already mentioned music download services).

  83. selling out by MoFoYa · · Score: 1

    if you make money entertaining people you are selling out. - it's that simple.

    if you play music just to play music then you are an artist.

    if you play music just to play music and happen to make some money you are a lucky artist.

    in response to a gold album making ~$one-whatever-thousand, you must remember that the album sales are not the only contributer to the bands income. there are also concert ticket sales, t-shirt sales ect...

    tho bottom line remains that the music is what matters, but if money is that big an issue, than drop the labels alltogether and distro. your tunes on the web... no going gold to repay the label, and ticket ect... sales are all gravy.

  84. The artists will surely revolt, and in the end... by shylock0 · · Score: 2, Interesting

    In the 21st century, no successful business model will be constructed based on the sale of recorded music for any price -- without the widespread implementation of DRM technologies which will surely be rejected by the body politic. If DRM isn't rejected, well then, it's a whole new ball game...

    --
    Statistically speaking, there's a 99.998% chance that my IQ is higher than yours. Get over it.
  85. Random suggestion. by Exantrius · · Score: 1

    This is a thought that's been running around in my mind for quite a bit, and it might be considered apropriate in this discussion (while a tangent to the actual story).

    I was discussing with a musician friend of mine the situation with the radio industry, and how musicians can't make a living as a musician these days. We were thinking of ways that we could get the music we want, and support the acts without the acts being impoverished.

    Note: This should be seen as "when the RIAA finally goes away, Payola is done for, and music adverts are limited to when/where they're playing", in other words, no time soon.

    What I came up with, was a basically stock system. This is very rough, I've no money to implement it, so I didn't do any research, thus I'll be using round numbers for it.

    The overall company would be responsible for basically nothing, except keeping cds on the shelves, and would be paid a pittance per cd (5-10%, but for taking such a little cut, they would have no sunk costs (besides immaterial expenses, paperwork and button mashers time).

    Okay, say it will cost a group $100k (probably a gross underestimation) to live comfortably for 9 months, and create a CD (including a first limited run of cds, enough to pay back all the "stockholders" if the cds sell). Group A is fairly popular, but is still mostly poor, so they get in the system. THey release 10k $10 stock, and it goes onto a "musicians stock exchange", or I guess a futures market is more apt). They then sell however many shares of stock they want/can. Each piece of stock is equivalent to a percentage of the proceeds for the album (minus touring, the musician should keep that). Thus, if they sell 100% of their shares, they get no profit from the cd, *EXCEPT* name recognition, increasing their fan base, and having a cd under their belt, and have been fed/clothed for 9 months.

    Group B is well off, so they can put out a record with very little or no stock sold in it --keeping 100% of the proceeds after the supplier and resellers take a big wet bite out of it. In reality, they'll probably recieve 5-6 dollars per cd, possibly more, if it's sold mainly through a website run from the umbrella company.

    Group C is willing to live a little less well, and do the cd a little faster, so they manage to cut their living expenses in half. Perhaps they get a day job, or make money playing gigs. the since all these groups are the same size, they are all expected to have the same amount of living expenses, thus they all require $100k of capital.
    In order to cut down on fraud, everyone is required to use the umbrella company's recording studio, so this band sells $50,000 to cover cd creation costs, and a pittance to live on (50% of the stock from the above groups) THey then recieve 50% of the net proceeds, and whoever put up the money for the other half would get the rest.

    I could imagine groups giving away a cd with two shares of stock, or a t-shirt with 4 shares of stock, or something like that. It would mean that fans would have a reason to try and get other people to like the music of the bands they support, it would mean more money per cd going to the ones supporting the arts, rather than marketing and promotions-- hell, 50k rabid fans are much better than any marketing plan ever devised.

    The copyrights would lay with the "shareholders", thus, if the shareholders want to give away the mp3s free, more power to them. The band would be given unrestricted rights to play and re-make songs, so long as they pay a percentage of the proceeds of any new cd back to the group backing the original cd (think punk bands that put out 12 cds and only have 80 unique songs)

    Okay, you can mod me down for being off topic now, I'm just glad you got to this point. /Ex

  86. Steve Albini and Courtney Love did this YEARS ago! by Newer+Guy · · Score: 2, Insightful

    This is NEW? Chicago producer Steve Albini and Front person for Hole, Courtney Love both did this analysis years ago! To quote Steve: "What each band member made is about what they would have made working at Dunkin Donuts".

  87. Here is the math by Anonymous Coward · · Score: 2, Funny

    Sales from an album: $3 Million
    Amount given to entire band: $100,000
    Amount given to band member: $40,000

    Ability to have sex with tons of hot chicks whenever you want: Priceless!

    So what is the problem?

    1. Re:Here is the math by ThousandStars · · Score: 1

      I'm surprised this is modded as funny...

      I would give it +1 Insightful.

  88. Not the Whole Story by beaverfever · · Score: 2, Interesting
    This is how the recording industry has always operated and it's not a surprise to anyone with any real experience. It costs money to release a recording, and the purpose of a business is to make a profit. Regardless, this article is misleading, and here's a few reasons why:

    Writing royalties: the 15% deal doesn't include writing royalties. If you are a musician then you probably know that the big money comes from royalties (radio play, selling rights for advertising, etc.). That is why copyrights are important to artists. In this hypothetical deal I doubt the band would sign away their ownership; if they did then they are probably idiots. There are plenty of previous examples to learn this lesson from (Bruce Springsteen, the Beatles). In a few cases it is worthwhile - to get a song recorded by Celine Dion the writer must give up 50% of the royalties, but there is almost a guarantee of sales, so it can be a winning concession. Just ask Dan Hill, writer of "sometimes when we touch"

    "The record company keeps the packaging and "free goods" funds. After collecting a $9.99 wholesale price, it also reaps an additional $829,900." The article gives the impression that the record company is keeping all this money, but it is going to pay for manufacturing, distribution, advertising, rent and salaries, all the same costs a computer company has, or a software company, or a fast-food company. If a group of musicians wants to take on all these responsibilites and release their product themselves, they can do it, and many have, successfully. (Barenaked Ladies - who moved on to working with a major record company)

    Live Performances: for an up and coming band, performing is simply advertising, so touring is not a typically big a money-maker, but if well managed then it can bring in some money. The bigger the band is then the more likely they are making money performing.

    The Benefits of Being Self-Employed: If these hypothetical guys are smart then they have an accountant writing off everything under the sun as an expense and they aren't paying much tax.

    I've already read a huge number of replies ranting about the greedy music industry. While I agree that there are plenty of creeps and dick-wads involved, that goes for the musicians too, and as I mentioned we are talking about a business, which exists to make money. Yes, they have made and do make bad business decisions, but all areas of business do. Anyways, calling the companies greedy for charging too much for music is really calling the kettle black. They are not witholding air, water or food. It is just pop music, and insisting that you have some sort of basic human right to those recordings regardless of any investment made by anyone else, that is greedy. You don't need it; you want it.

  89. We know where all that ticket money goes.... by commodoresloat · · Score: 3, Funny

    pyrotechnics!!!!

    *ducks*

  90. WHY P2P IS NOT FAIR USE by Anonymous Coward · · Score: 1, Interesting

    http://www.templetons.com/brad/copymyths.html

    The "fair use" exemption to (U.S.) copyright law was created to allow things such as commentary, parody, news reporting, research and education about copyrighted works without the permission of the author. That's important so that copyright law doesn't block your freedom to express your own works -- only the ability to express other people's. Intent, and damage to the commercial value of the work are important considerations. Are you reproducing an article from the New York Times because you needed to in order to criticise the quality of the New York Times, or because you couldn't find time to write your own story, or didn't want your readers to have to register at the New York Times web site? The first is probably fair use, the others probably aren't.

    Fair use is usually a short excerpt and almost always attributed. (One should not use more of the work than is necessary to make the commentary.) It should not harm the commercial value of the work -- in the sense of people no longer needing to buy it (which is another reason why reproduction of the entire work is a problem.)

    Note that most inclusion of text in Usenet followups is for commentary and reply, and it doesn't damage the commercial value of the original posting (if it has any) and as such it is fair use. Fair use isn't an exact doctrine, either. The court decides if the right to comment overrides the copyright on an individual basis in each case. There have been cases that go beyond the bounds of what I say above, but in general they don't apply to the typical net misclaim of fair use.

    The "fair use" concept varies from country to country, and has different names (such as "fair dealing" in Canada) and other limitations outside the USA.

  91. Blah by ruckc · · Score: 1

    They also make a small cut off of merchandising, concerts, random junk, paid appearances.... etc..

    Still doesn't add up to much though.

  92. They're not supposed to "pay off" by theroterts · · Score: 1

    It's illegal to "pay off" a radio station in exchange for airplay. It's called "payola" and the record companies would NEVER think of doing something illegal.

    Though my wife was a music director for several years and I know that it happens all the time.

    Interesting double standard, heh? Don't copy our music, but somehow's it's OK for the record companies to break the law to get that music played.

    Admittedly, a gray area, but an interesting one...

    --
    ?SYNTAX ERROR IN SIG

    READY.
    1. Re:They're not supposed to "pay off" by Anonymous Coward · · Score: 0

      Ok, the problem here is not that members of some industry routinely break the law.
      The problem is that the risk of being fined to bankruptcy and doing jail time is effectively zero. Our legal system is not providing the equal protection of the law guaranteed by the constitution, and it is high time for a new government that does operate according to the constraints and demands that it sets out.

  93. Who signs the contract? by NineNine · · Score: 0

    So what if the record company takes a fortune? The band AGREES to this. They sign a CONTRACT. So, unless the band is made up of all illiterate people who also can't afford a lawyer to read it for them, who cares? That's what a contract is. It's an agreement. If they don't like it, they shouldn't sign it. I've never heard of a band being forced to sign a contract under duress, and if they do, the contract is null and void.

    1. Re:Who signs the contract? by joshsisk · · Score: 2, Interesting

      Things like "deal memos" are sketchy though...

      The band gets seen by a A&R rep, the rep talks to them, has a meeting without lawyers present, since "it's not a contract meeting, just a get to know you meeting", then gets them to sign a deal memo that says they intend to sign a contract with the label. It's legally binding, though the A&R rep implies that it's an informal thing.

      At this point the band can't sign with anyone else, so they are almost guaranteed to get a bad contract - they have no leverage anymore.

      And, yes, they could probably get out of the deal memo, since it's a sketchy business practice - but the label can keep it in the courts for quite awhile, and they have lawyers on salary, while the band has to be paying a lawyer hourly, and probably doesn't have much money since they aren't signed...

  94. software parallels by SHEENmaster · · Score: 1

    I don't mean to stray this thread back to /.'s topic of geekiness, but the exact same statement can be made about coding.

    I learned to code BASIC at 8, and started releasing software to the public 4 years ago when I was twelve. Along the way I first dumped DOS, then BASIC, and finally Windows, but I still code just because it is fun.

    Over the summer I tried "selling out" by taking a summer job in Java programming. It was still fun; I was still programming. But it wasn't the same and I didn't continue on over the summer.

    I still plan to go into programming for a career, but hopefully for some OSS project rather than just for profit.

    --
    You can't judge a book by the way it wears its hair.
  95. Don't do it with the RIAA by KanSer · · Score: 5, Insightful

    I don't know that I have ever seen a 'rock star' driving a really nice car. You know who I see with lots of money? Rap artists. Anyone care to venture a guess why there are rap artists that make a shit load of money?

    They have their own labels! Death row, murder inc, I could go on and on. These guys were smarter then whitey from the get-go. They produced their own music, and sold it themselves. New artists get picked up by these labels and make ridiculous amounts of money because these labels know how easy it is to market these albums. All you need to do is have a video filled with hot chicks and some Bling, have music that doesnt suck(Doesn't have to be good, Ja Rule sucks heavy fucking ass and is really rich), and the white MTV watching yuppie kids will go out and buy that album in droves.

    There is no shortage of smaller record labels that will sign interesting groups. If not, create your own label! Swollen Members did it with Battle Ax records, and the beastie boys eventually came out with Grand Royal as a record company. Hello Nasty sold a shitload of albums, and wasn't promoted by RIAA tools.

    If more people followed this business scheme (Basically invented by Puff Daddy and Russel Simmons) when they went for a recording contract, they'd be rich. (See Bow Wow, but it helps that Snoop Dogg was in his corner.)

    I don't feel sorry for Idiot Band A when they sign with Mega Asshole Company B, without taking into account whats going on. That's just stupid business practice.

    --
    • MOD PARENT UP by Anonymous Coward Wednesday April 20, @4:20
    1. Re:Don't do it with the RIAA by mad_dog3283 · · Score: 1

      It's because they have their own labels?!? I thought it was because of the drug deals they do on the side.

      --
      Reprise the theme song and roll the credits!
    2. Re:Don't do it with the RIAA by Anonymous Coward · · Score: 0

      I saw Sammy Hagar in Dallas driving a red Formula Firebird, Michigan plates "1RED1"

      Does that count?

    3. Re:Don't do it with the RIAA by MrIcee · · Score: 1
      Your post is dead on target. Way-back-when my company did the original website for Nine Inch Nails. In our meetings with Trent, one thing that always struck me was that he seemed to have more interest in producing than in playing. For people who think that NIN died, the opposite is true. He has gone on to produce many recordings for other artists. His studio in New Orleans is unbelievable (as I understand, he has one of the largest digital mixers in the midwest, thus he attracts alot of bands for recording).

      This is obviously the proper way to go. NIN created their own label which then empowered them to create their own recording studio (in an old mortuary in fact) which leads them to produce other bands.

      Think about it.... RIAA rapes you... labels rape you... and if you come out with a GOLD record - you had damn well do better next time or the label will look elsewhere. Thus, it's an always up-hill battle for the artist. The solution? Stop recording and start producing.

      I'm just glad that even though I had years and years and years of music training... that I went into the computer industry instead - music is a hard industry to be successful in (though these days, computers aint doing much better THANK YOU GEORGE).

      Aloha Nui Loa

    4. Re:Don't do it with the RIAA by Gregg+M · · Score: 1

      Death row? Interscope Records distributes records for them. I believe Vivendi Universal owns them. Lets see Death Row get it's records into K-mart.

      Calling this a record company is like calling my motorhome a modeling agency.

      Lets see.... starting your own record label is a great idea! I'm glad those rappers Metallica did it in 1983 before whitey figured it out.

      EVERYONE starts their own label. Their all backed up by the few big record companies. Those record companies rip them off just as much or more as the big boys. Just look at what TLC had to go through.

      --
      Linux is only free if your time has no value. Windows is only free if you threaten to use Linux.
  96. $40,477.25 aint bad by anthony_dipierro · · Score: 2, Insightful

    If you want to take the risks, produce your own album. Borrowing someone else's money without providing them with collateral in case you fail is expensive. Go figure.

  97. Irrelevant by NineNine · · Score: 1

    What percentage the artists (or you) make of the gross is completely irrelevant unless they or you signed a contract based on gross sales.

  98. Best Alternative To the Negotiated Agreement by sjbe · · Score: 1

    Why is the negotiating position of these bands so weak that they end up with such a shitty deal?

    Negotiating strength is dictated in large part by your BATNA. (Best Alternative To the Negotiated Agreement - no I didn't make that up, it's a standard term in negotiation) If you have other options besides the one offered to you, you have a strong BATNA and have little reason to compromise.

    In this case the record labels have literally thousands of bands who would dearly love to have a record deal, but there are only a few record labels. (and they essentially collude) No one else has the same marketing reach so the labels. If one band realizes their deal is shitty, the label doesn't care because there are a thousand other bands out there. The labels have a strong BATNA.

    This is the same reason why Wal*Mart can get better prices on merchandise than your local mom-n-pop store. Wal*Mart has thousands of vendors (none of whom are more than 2% of sales) who would love to sell through Wal*Mart. But since Wal*Mart has other vendors they have a strong BATNA. Chosing an alternative vendor doesn't really hurt them.

  99. The legal precedent by yerricde · · Score: 1

    I hardly think borrowing a chord progression or snippet of melody counts as copyright infringement

    The case I refer to is Bright Tunes Music v. Harrisongs Music . George Harrison lost over copying eight notes. This and other music copyright infringement cases can be found at Columbia Law Library.

    --
    Will I retire or break 10K?
  100. Free music in old times by moncyb · · Score: 1

    There was free music back then. Not if you went to a concert, but if you had any friends or neighbors, there was plenty of free music. Haven't you ever heard of barn dances? They didn't charge anyone, they just used someone's barn, and a few farmers would play the fiddle.

    City dwellers would play the piano in their parlor. That's what the room was for--entertaining guests. Music was part of the entertainment. They usually didn't hire anyone, because so many people knew how to play musical instruments. Did you think they went to see movies or watched tv? Those didn't exist.

    Television, movies and recorded music has made it so very few try to learn how to entertain because someone else does it for them. Entertainment has become a niche market. There are people who want to entertain (for free), but pre-internet they didn't have any way to distribute their recordings to the masses. Just look for the stories, movies (not much of this, but wait until real broadband comes alive), and music--there is a lot of it out their. Yes, most of it is not polished (I think only superficial people really care about that anyway). Yes, lots of the stories and movies are fan based fiction, so the characters are not compeletely original, but most of the story is. If you call what they do "stealing", then Disney and most of the parody producers belong in jail for a long, long time.

  101. touring bands by Anonymous Coward · · Score: 0

    its a good thing that musicians make their money by touring

  102. What a crock.... by LowTolerance · · Score: 2, Insightful

    If the average rock star only made $40,000 per album, MTV's "Cribs" wouldn't exist. Most bands get their money from booking sold out tours. Think about Phish. Out of like 15 albums, not a single one has gone gold, but they're still filthy rich because they put on a damned good show.

  103. What did the lawyer do for them? by SiliconEntity · · Score: 1

    All these comments claim that the band members are idiots who sign a contract without knowing what's in it. But in the (fake) example in the article, they paid over $100,000 to a lawyer who got them the contract!

    How do you explain how they got into such a terrible contract if they paid that much money to their lawyer? This isn't a case of some greenhorns who didn't know anything about what they were signing. They had a very expensive lawyer to advise them. Did the lawyer simply shirk his business ethics? Did he fail to protect his clients' interest?

    Or, more likely, is this just a bogus example whose numbers don't add up, intended to stir up anger at the "evil" record companies?

  104. not to say.... by tq_at_sju · · Score: 1

    not to say that bands shouldn't make more money from their albums, but they also make money touring. And i think bands are making more money touring these days because ticket prices are up and because of musician run fan clubs selling their own tickets with convenience fees...

    --
    http://www.vanillaafro.com - take me seriously and I will shoot you
  105. RIAA - by queenb**ch · · Score: 0, Troll

    RIAA = Rip-off Industry Association Assholes

    --
    HDGary secures my bank :/
  106. Eerily similar! by droopus · · Score: 1

    Damn, deja vu.

    Well, I guess that's corroboration. B)

    --
    "The pie shall be cut in half and each man shall receive.....death. I'll eat the pie."
  107. You gotta tour by TheGrayArea · · Score: 2, Insightful

    To make any real money, you gotta tour. That's where the actual money gets made for an average band. I remember reading an interview with CC Deville of Poison where he says he only got 20K out of their first major album.

    --

    This space for rent.
  108. Re:Two words: Clear Channel by Creepy · · Score: 1

    Clear Channel does make a fortune promoting shows, but Live music is still where musicians make their money, not record sales. If you buy a $20 ticket, $10 goes to promotion, tickets and expenses, and $10 goes to the band.

    Pretty much any live show ticket is split 50-50, with the venue paying expenses out of their half (musicians always pay record companies out of their tiny percentage). Keep in mind that touring musicians have a expenses for things such as roadies, sound engineer(s) and promoter(s), but usually those jobs are also based on percentages - so out of the 50% the musicians earn, 10-20% goes to roadies, 15% to manager/promoter, and 15% to sound engineer. None of it goes to power for the venue, ordinances and licenses, ticket printing and distrobution, promotional advertising, etc., all of which the record company would add to your half.

    You might think that the venue loses out, because 50% probably doesn't pay for everything, and you're right - but venues make up the other money (actually pretty much all their profit) with concession sales and a percentage on T-Shirt and CD sales in the venue. I think the fact that record companies don't have this second source of income is why they expense everything to the bands. Bands usually make some profit on CD and T-Shirt sales done through a venue (my band did, at least - actually, almost all of our profits were through T-Shirts, because ticket costs usually only covered our touring expenses), but all concession sales go to the venue.

  109. Your rant misses the obvious point by geekee · · Score: 2

    "as per the article, only 128 of some 30,000 records released in 2002 were so privileged"

    How much money did the record companies actually make when they probably lost money on 29,872 albums? Record labels take all the risks on new bands. They deserve the money. Once you have a gold record, you are in a better position to negotiate a better contract for your second album. What's the complaint anyway? The band accepted the contract voluntarily? No one forced them.

    --
    Vote for Pedro
    1. Re:Your rant misses the obvious point by dougnaka · · Score: 1
      So chalk their bad decision making up as one MORE reason they should die...

      There is no room to claim the RIAA has it tough.. They're screwing the artists plain and simple, and they're screwing the public.

      Do you think the extra money the RIAA took from this mythical band actually went to the artists of the 29,872 other albums? doubtful.

      --
      My Linux Command of the Day site : LCOD
    2. Re:Your rant misses the obvious point by Anonymous Coward · · Score: 0
      How much money did the record companies actually make when they probably lost money on 29,872 albums?

      Hmm, creative accounting? I'm sure you'd be losing money too if you paid $20k for a microphone, and $10k/hour for time at a studio that you own.

      Once you have a gold record, you are in a better position to negotiate a better contract for your second album.

      But you already have a contract, probably one for 5-7 albums. If you break it, the lawsuit will be seeking damages commesurate with your new-found populatiry.

    3. Re:Your rant misses the obvious point by AliasMoze · · Score: 1

      "Taking a risk on a new band" is the record company's excuse for simple exploitation. They snatch up the best acts and make money off them. It's a matter of spotting the gold, sealing it in plastic, and selling it. There is no inherent virtue in it, and there is no risk, no matter how many failed acts they invest in.

      But the band accepted the contract! Nobody held a gun to its head. This is true, but bear in mind the band has no alternative, unless you count NOT being professional musicians. It's the same argument a monopolistic industry uses on consumers: If you don't like it, don't buy. Of course, there's no alternative for the consumer either. The artist and consumer have no choice, because the established industry leaders have a monopoly on the distribution system. It's that simple.

      Think about that. The RIAA OWNS the distribution system, the way in which artists reach consumers. They own music as we know it. And, assuming people always want music, owning the distribution system guarantees profit; it's a no-lose situation, a riskless investment. The question is not IF they'll make money but HOW MUCH.

      Put this theory to the test. When's the last year the industry lost money, didn't make a profit? Invested in so many failed acts that it didn't make money off the successful ones?

      Exactly. David Geffen is not a billionaire because he loses lots of money.

      The problem isn't that artists make X amount on X number of album sales. Who's to say a new system, say the one that will evolve from file sharing, will pay more? It may pay less. The problem, rather, is that there is no alternative for the artists, because there is no alternative for the consumer. What the record industry does is no more virtuous than the local mafia charging you a percentage of your business in exchange for not burning down your store. What's needed is the crushing of the RIAA's illegal cartel, zero tolerance for its anti-competitive tactics, and the introduction of new means of distribution.

    4. Re:Your rant misses the obvious point by gmhowell · · Score: 1

      If the record companies are doing their job in sifting through the garbage, wouldn't their success rate be much higher than 128 out of 30,000?

      --
      Jesus was all right but his disciples were thick and ordinary. -John Lennon
  110. This is proof... by Tuxinatorium · · Score: 1

    This is proof that the RIAA's alleged lack of profitability is their own fault for being ridiculously inefficient in their expenditures. A record can easily be produced and promoted for 1/10 to 1/100 of what they spend. Instead of working efficiently, they just give the artists the financial shaft in order to maintain profitability, and it's no suprise that we end up with CRAP since the corporations are the only ones making much money, not the artists, so there's no motivation to produce anything decent. The RIAA is a destructive monopoly, and in economics terms, a "market failure". Contrary to the opinion of conservative laymen, unrestricted monopolies never represent the most efficient way of doing things.

  111. But you forget... by Anonymous Coward · · Score: 0

    Almost all proceeds of live gigs (that is, their fees for appearing) go straight to the band basically (and its management). It is there the bands can cash in on their fame. It is also there where it becomes blaringly obvious it was all worth it.

    I don't give a flying possum about the fact someone is only going to cut me $40k, if i'm standing infront of 30,000 people I'm going to be feeling like a million dollars (especially since I probably would have had a line or two of coke before for ultra uber rockstar performance value).

  112. I smell fish by SomeOtherGuy · · Score: 1

    Bullshit!

    Their 40K a year must go a lot farther than my 40K...The 7 cars in the garage of the huge mansions with 2 or 3 swimming pools that I see on MTV cribs looks not much like my domain.

    Just watched the show last week and some band I had never heard of (Blink 192 or something) was rolling around a spread like described above.

    --
    (+1 Funny) only if I laugh out loud.
  113. a year to produce? by AssFace · · Score: 2

    what happened to being in the stupio for a week, or a month?

    out of all of that money, what percent of it is totally wasted on the lifestyle of being a pop star?

    I don't see what the issue is, they still make a profit in that model - if they aren't making "enough" profit, then that is a sign that one of the variables in the mix is off.
    They are assuming that the variable that is off is the sales - the easiest one to point the blame on - but as in all business, perhaps the easier way is to be introspective - look inward and see where to cut costs.

    There are a crapload of bands out there that make albums faster and cheaper than that.

    --

    There are some odd things afoot now, in the Villa Straylight.
  114. I said they don't know by yerricde · · Score: 1

    So don't steal songs!

    What part of "they don't know they're pirating" didn't you understand? How do you suggest that a songwriter prevent himself from stealing another songwriter's song?

    --
    Will I retire or break 10K?
  115. Successful bands REAL Income. by Rwfresh2002 · · Score: 2, Interesting

    I am one of the original operators/founders for a free music site on the web in 1994. The second largest music archive of the time (next to IUMA). And a technological trend setter with the use of incredible MP2 (yes two) technology. My view of the current state of the music industry is this: Bands/Artists who continue to rely on industry to make money and not MUSIC will always get fucked and deserve to be fucked. They place their value in their relationship with the record companies and the RC's assests and not their fans. It's common business sense to make your CUSTOMER happy (fans), focus on your product(MUSIC, PERFORMING) and your relationship with your customers (FANS). SO WHY would a band give away control of their most important assests for PENNIES? Because they are stupid and they are greedy. Which is funny since in return for their greed they get the opposite of what they lust for. It's not very different than a small software company selling out completely to investors who steer the company first into disaster and then recover large amounts of money at the expense of the original upstart. The alternative is CLEAR. Why bands don't see this i really don't know and no longer care. The alternative is to PLAY fucking music. PLAY ALOT. PLAY in front of crowds. That's how a band gets paid. That's how a band develops a "customer" base. Don't waste ALL of your time and effort copywriting songs that suck.. MAKE MORE SONGS. LOTS OF SONGS. And play them. Make copies of your music. Let people listen to them and use them and make copies of them. This will widen your customer base. This will open more opportunity to PLAY more and make more music. THEN and ONLY then will people MAYBE be willing to pay for your Music. The REAL drive of buying art is the support of the expression in the hopes that the expression will continue to grow. Two examples of bands that have made this incredibly SIMPLE process work are the Grateful Dead and PHISH. Not to mention hundreds of DJ's and electronic acts who are driven by their love of PLAYING and PERFORMING music. If a band or artist does not love music and performing enough to do it everyday they will be pushed out of the market by ones that are. Just like in ANY business. Bands should look at performing and making music as their job. Not something they do as part of their Music career and inbetween being famous and broke. I'm not as big fan of those bands i mentioned. I do like them but it is funny how their lifestyles and business plans resemble eachother. Do you think bands that tour 325 days out of the year make money? Fucking A right they do. And if they love doing it they are fucking lucky individuals. As for the RIAA, why sit around and whine at them? Why should they give away all their assests? Why should they let people steal their money? They won't. And people won't stop stealing it. The whole fight is a stupid waste of time for people who want to make music. Placing SO much emphasis on the RIAA is admitting they hold some supreme power over artists and art in general. And if you think that is the case then you don't understand anything about real music or art.

  116. how 'bout moneys from gigs? by crux6rind · · Score: 1

    bands shouldnt just make money from record sales. if they could sold 500.000 copies, then could probably sellin tickets touring and doin live concerts from coast to coast. not to mention some clothing,merchandise and product endorsement.

    --

    d035 7hi5 100k 1ik3 4n l337 5i6 2 j00 ?
  117. Crazy. by golrien · · Score: 1

    I knew that there were plenty of good bands that go indie, but I never thought they actually earned more than the commercial guys.

  118. Re:RIAA pays more than pirates do. by reezle · · Score: 2, Insightful

    No hypocracy here... Go PAY to see them live. They get paid for the work they do that way... Download the music for free, and if they are any good, they'll draw large crowds when they come to town.
    They won't get royalty checks for 20 years on the recording session they spent a few months on, but what's so bad about that? I don't get paid for 20 years for the network I spent 6 months perfecting.

    The recurring theme around here seems to be 'update the business model'... How about a business model that doesn't include money for recordings anymore?
    No hypocracy involved...

  119. Another good Obligatory link by melorama · · Score: 2, Interesting

    The Steve Albini article is of course, spot on. The fact that it is almost 10 years old is remarkable, and it's a shame that things haven't changed much since then. The flagship punkrock fanzine Maximum Rock 'N' Roll devoted an entire issue to this topic back in 1994, in a groundbreaking (at the time) issue entitled, "Major Labels: Some of your friends are already this fucked", and it should be required reading for anyone who wants to resist the corporatization of music.

  120. Funny money. by Picass0 · · Score: 1

    It's well known that hollywood has some ...unique book-keeping (to say the least) and the music biz is no different. I'm sure members of bands like No Doubt, Limp Bizkit, Foo Fighters (all of whom have gold albums) are living well. So even if they are making $160,000 above board, they are getting some gravy somewhere. To live well in CA takes a buttload more than 40K annually. So this math doesn't work.

  121. Rewards by hackwrench · · Score: 2, Interesting

    So you want us to reward artists for making bad decisions. That money is how much an artist makes for an album that goes GOLD, piracy or no piracy.

    But then, I'm not cashing a fat IT paycheck, either.

  122. Brighter figures by Anonymous Coward · · Score: 0

    Now, let's rework those numbers, assuming the RIAA decided to stop taking an adversarial position against their own customers.

    If they cut the price to $10/CD and sold a million, that'd be $10,000,000 gross. Assuming no other changes in the production process, that means $1,510,000 more for their pockets, or an extra $377,500 each. That's over $400k each, for only a year's work. Truly a paycheck befitting a rock star.

    Now, of course this assumes it's possible to sell twice as many CD's. A stretch? Maybe a little, but if you don't think a drop in price to $10 will entice more people to buy, just remember: many of us are actively boycotting the RIAA! We're assuming the RIAA has decided to stop taking an adversarial position against their own customers, remember? So we can expect conscientious consumers to get back into the market, and more kids can afford it, so one way or the other, sales climb.

    I have omitted the issue of manufacturing and shipping twice as many CD's, but accounting for economies of scale, the dent in the profits should still allow plenty of moolah for motorcycles and high-grade heroin and whatever else rock stars get into these days. Maybe the same results could be realized with an $11 price tag, thus adding another cool million to the money pot. The numbers can be adjusted for optimal profits, but the key is that giving consumers a fair value usually results in both sides of the market being satisfied.

  123. USC? by Razzak · · Score: 1

    I thought this was about the USC Marshall School's Case Competition. This year's case was on what the response should be the IP violations on the internet, and how to form a viable business model in the new industry structure. The teams did well, but one obviously didn't have a good grasp of tech cuz they couldn't tell if their solution was P2P or with a centralized server.

  124. That's why I invented a better way by inKubus · · Score: 1

    You guys are going to love what I've designed. A new way for music. Of course, I can't say anything til it's patented. And let me just put it this way: I'm not patenting it for the money. No one else is to be trusted with this idea, no one else would have the integrity to do it right. Yes, the big record companies could snatch my idea up and waste it, or I can keep it to myself and do it right. Be aware folks, the revolution is coming, and modern musicians are going to be snatching their rights back.

    --
    Cool! Amazing Toys.
    1. Re:That's why I invented a better way by Anonymous Coward · · Score: 0

      Whatever. You jackass.

    2. Re:That's why I invented a better way by hondo77 · · Score: 1

      Filed under "I meant to do that," and "We know the Iraqis have weapons of mass destruction, we just can't tell you where, to protect our sources."

      --
      I live ze unknown. I love ze unknown. I am ze unknown.
  125. Re:RIAA pays more than pirates do. by alkali · · Score: 4, Insightful
    Go PAY to see them live. They get paid for the work they do that way...

    How about a business model that doesn't include money for recordings anymore?

    Begs the question. I don't really want to see any but a few bands live. I don't want them to reshingle my roof. I don't want them to wash my car. What I want are recordings of their music. There's a lot of money in sales of recordings; surely more of it could find its way to artists.

  126. everyone talks shit... by Anonymous Coward · · Score: 0

    It's just the counterculture version of plastic, look and act like all the other subculturians, so we'll know who's cool. Punks and alternatives are even more slow-witted about this than even the hippies were.

  127. Fringe benefits by writertype · · Score: 0, Redundant

    Daily wage: $80
    Pro diem: $20/day
    Blowjob from strung-out 16-year-old who thinks you're the most exciting thing EVAR in her one-horse town: Priceless.

  128. And That's More Than I've EVER Made! by Master+of+Transhuman · · Score: 1

    $40K - even before taxes - is more than I ever made...

    While it's hard to live on that in the big city, you can do in a smaller town...

    It's called "making a living" - as in "too busy making a living to get rich"...

    Personally, I would find making $40K a year to sit around and play music to be not a bad job (if I had the talent to do it of course - actually, even if I didn't have the talent, as many musicians don't...)

    Anything over $40K would be a great bonus...

    Not to mention the fringe benefits (groupies)...

    Jodie Foster makes $15 million a movie. She points out that the average actor out of 40,000 or so actors makes less than $10K a year.

    Welcome to the real world of art...

    --
    Richard Steven Hack - This sig is TOO GODDAMN SHORT TO DO ANYTHING USEFUL WITH! MORONS!
  129. Only too true... by Anonymous Coward · · Score: 0

    I went through this entire process in the mid-90's playing guitar in a band that was on Columbia records. The thing that the NY Daily News in forgetting is that the band won't get ANY money beyond their initial signing bonus unless they recoup the money that the label has put into them. My old band, Howlin' Maggie, needed to go at least gold (500,000 copies) in order to recoup. That means that we got NOTHING since we only sold around 50,000 before we were dropped 3 years later. The real bummer is that we recorded the record ourselves pretty cheaply so our tab at the label could have been much higher.

    Screw Hillary Rosen and all the whiney asses that complain about piracy ruining the music business. It was ruined long before the Internet was even an issue...

    Andy Harrison

  130. Sure, then I got wise... by crovira · · Score: 1

    "And I bet you wanted to be a rock star when you were a kid..." Yeah sure. I only played my guts out twelve hours a day, day in, day out until I got REALLY good. (I once played a gig and had an audience of mostly other guitarists and their girl friends LISTENING [you could have a hear a pin drop, even the waiters weren't making any noise,] scared the living crap outta me. I was GOOD!)

    Then I was led to the same conculsion as Gary Numan. The music industry is first about profits and then about product. YOU don't even enter into the calculations.

    If you love music, do not try making any kind of recording. Just play... Live music performing is the only way...

    Otherwise you'll end up running a placement agency in some god forsaken little town (okay Montreal ain't so small,) if you were smart enough and hung on to what ever cash you managed to squeeze out of the pipe and remembering your glory days.

    I chucked it all in and went into software development (yeah... big mistake,) and now I'm into getting drunk, smoking my brains out and bleeding my life out my ass-hole.

    Same ol' same ol'...

    --
    MSBPodcast.com The opinions expressed here are my own. If you don't like 'em... Think up your own stuff.
  131. Morons... by Master+of+Transhuman · · Score: 1

    Okay, bands don't make money touring.

    SO DON'T TOUR!

    Instead, set up deals where you go play for people who are willing to pay to see you play and where you do not have to spend a fortune on some venue that rips you off.

    I read a book on making your own music one time by some babe called Jana whatever, and she made $30K/year or whatever playing her music and selling her CD's at her appearances. She played for anybody who'd pay - corporate sales meetings, organization events, Kiwanis club, whatever.

    She didn't get rich, but she made a living, had fun playing her music, got paid to travel all over the country, and generally regarded herself as a "star" - without waiting for the music industry to call her a star, as she put it.

    Now, on to the 21st Century...

    THE NET REPLACES THE TOUR!

    You set up a streaming site, you charge subscription fees per month (cheap, like $10), you play live (or prerecorded live) in the studio which is streamed to the subscribers, say once or twice a week. Maybe you even have jam sessions the subscribers can listen in on.

    The point is, in essence you are "touring" (i.e., live performances) every week without moving from your studio. Your only "tour" expense is your bandwidth and IT support and marketing.

    If you have 10,000 fans paying you $10 a month, you make $100K/month, $1.2 million/year. If you net 15% profit, you net $180K/year. Spread over your 4-man band, you make $45K each.

    And you haven't moved an inch and you paid nothing to a record label or anybody else but your bandwidth supplier and IT support (and maybe an advertising agency).

    If you're Metallica, the numbers get bigger fast. One million fans paying $10/month is $10 million/month, $120 million/year. I suspect the profits scale faster than the expenses on the Net (unless you're a "dot.com" of course...)

    --
    Richard Steven Hack - This sig is TOO GODDAMN SHORT TO DO ANYTHING USEFUL WITH! MORONS!
  132. Has to be more than that by tkrotchko · · Score: 1

    "Because they are playing local clubs for $200/night"

    I played in a band back in the late 70's and we were getting more than this 25 years ago.

    Seems hard to believe that's all they get.

    --
    You were mistaken. Which is odd, since memory shouldn't be a problem for you
  133. Wait till it happens to us. by Pinball+Wizard · · Score: 2, Interesting

    The music business is is undeniably a horrible uber-competitive backstabbing industry. Why? Because a) playing music is fun b) people will pay some amount of money to hear music. What results is a bunch of people going to increasingly ridiculous lengths in order to make it in the music industry. A lucky few will make generous amounts of money, while the rest will scramble to survive.

    Such is the case in any industry where the work is a lot of fun, and I say this as a warning because the same thing can easily happen to computer programmers. Why? Because programming is a fun and rewarding job, and as soon as the general public figures this out you will have a situation where a) a lucky few get to be paid as programmers b) a lot of programming work gets done for free by the many trying to "make it" in the business. "Oh, but programming is hard", you say. So is being a top-flight musician, and there are plenty of those who have to hump day jobs because there just aren't enough paying positions to support them at what they would like(and are highly qualified) to do.

    So while you sit there posting to slashdot, saying "oh well, they can make their money through concerts and selling t-shirts", just remember, the same thing could happen to you one day. Hope you're good at self-promotion. Or that enough people never figure out that programming is fun in a similar way that music is fun. I wouldn't bet on the latter. It doesn't take a genius to coorelate the fact that people already produce a ton of code for free to the speculation that they could get programmers to do their bidding at very generous rates.

    --

    No, Thursday's out. How about never - is never good for you?

    1. Re:Wait till it happens to us. by IxnayOnTheIxnay · · Score: 1

      Sports and music have GLAMOUR attached. Programming does not, outside of programming circles. People don't want to be rock stars because music is fun; they want the fame and lifestyle. Also, how many of the artists behind those 128 gold albums don't have an ounce of musical talent? Putting a pretty but phony face on a programmer isn't going to sell software the way it sells music.

    2. Re:Wait till it happens to us. by llywrch · · Score: 1

      > A lucky few will make generous amounts of money, while the rest will scramble to survive.
      >
      > Such is the case in any industry where the work is a lot of fun, and I say this as a warning because the same thing can easily
      > happen to computer programmers. Why? Because programming is a fun and rewarding job, and as soon as the general
      > public figures this out you will have a situation where a) a lucky few get to be paid as programmers b) a lot of
      > programming work gets done for free by the many trying to "make it" in the business.

      Maybe. But I sincerely doubt it. Why? Because programmers are creating something that is of real use, whereas musicians -- as with any artist -- produce something that has no useable value, & survive on the perception that their work has an audience who is willing to pay money to experience what they have created.

      In short, someone is always needed to write drivers, debug existing code, write wrapper scripts, & do the thousand-&-one things that wouldn't be accomplished if someone wasn't being paid. A programmer may end up earning as much as a ditch digger, but there will always be a demand for her/his work. Meanwhile, one can always stop buying novels or new CDs if one is unemployed (which I was forced to do), but if the car breaks, you are forced to run a balance on the credit card (which I did).

      Geoff

      --
      I think I see a trend here. Maybe for them it really would be easier to muzzle the entire internet than to produce p
  134. Mathematical Analysis by MarvinMouse · · Score: 3, Informative

    500,000 albums sell at $16.98 = $8,490,000 Okay, so that says: Total Earnings = $8,490,000. Now let's work out who gets what out of this.

    B = Band, R = Retail, S = Studio, Packaging, production costs, A = Advertising, L = Lawyers, T = Total Left to record company, M = Manager

    The Grunts' royalty is 15% of retail. Now, if we take this at face value that means.

    B(OfRetail) = 15% * 8,490,000 ~= 1.3 Mil. But since we know this is wrong, let us continue.

    "packaging deductions" of 25% So, this translates into, or means that

    S = $2,122,500, T = $6,367,500

    now we also have, That's a "free goods" charge of 15% So that gives us (since this is advertising)

    S = $2,122,500, A = $1,273,500, T = $5,094,000

    Okay, now we are getting somewhere. Now the band gets from this. So, the band's royalty is actually: $764,100

    B = T*.15 = $764,100 - Yep!, S = $2,122,500, A = $1,273,500, T = $5,094,000 - B = $4,329,900

    Now, The $3,500,000 balance goes to retailers So, we have

    R = $3,500,000, B = $764,100, S = $2,122,500
    A = $1,273,500, T = $829,900

    The record company ... reaps ... $829,900

    R = $3,500,000, B = $764,100, S = $2,122,500, A = $1,273,500, T = $829,900

    Okay, our numbers all make sense thus far... now things get weird. Because the band was hot, they got an advance from the record company of $300,000. They spent $200,000 of that recording the album, which included a $50,000 advance to the producer. They pocketed the remaining $100,000.

    So this means that the band got $200,000 of their royalties early, and spent $200,000 on recording costs, and the band kept the $100,000. So we have

    R = $3,500,000, B = $764,100 - $200,000 = $564,100, S = $2,122,500 + $200,000 = $2,322,500, A = $1,273,500, T = $829,900

    Now as well, we have more advertising (the video). So here we go. the label spent $100,000 making the band's first video Which was expected to be paid back

    R = $3,500,000, B = $564,100 - $100,000 = $464,100, S = $2,322,500, A = $1,273,500 + $100,000 = $1,373,500, T = $829,900

    Whoa, now our numbers aren't lining up as well. Where the problem? The article says: So the royalty drops to $364,100.

    For some reason the writer of the article decided that the $100,000 that the artists kept wasn't really paid out to them. Even though they "pocketed the money" or kept it, or however you want to put it. They made $100,000. That's the deficiency. They do fix this later on. Now, let's finish.

    But the band's producer also earned a 4% royalty of $203,760, of which he already received $50,000. So the band has to pay him an additional $153,760, reducing their royalty to $210,340. Let's put this as production costs. Since the producer must be paid as well.

    R = $3,500,000, B = $464,100 - $153,760 = $310,340, S = $2,322,500 + 153,760 = $2,476,260, A = $1,373,500, T = $829,900

    Good.. Good... After pocketing $310,340 (which includes the remaining $100,000 of the advance) All Fixed

    the band has to pay their manager 15%, or $46,551, and give 2% of the total deal, or $101,880, to the power lawyer who got them the deal in the first place. That takes the band down to $161,909. Let's see now:

    R = $3,500,000, B = $310,340 - $101,880 - $46,551 = $161,909, S = $2,476,260, A = $1,373,500, T = $829,900, L = $101,880, M = $46,551

    Total = $8,490,000 - All is accounted for.

    Okay, so now that we have all of the numbers worked out.. Whose coming out on top here.

    Well, the Retail guys definitely make a pretty penny. ($3,500,000), but that has to be divided over all their stores, so it doesn't work as well.

    Studio costs are really high. (Higher than they probably should be.) That would be something of note.. But most importantly... the record company gets T = $829,900

    That's it... Sure they get "whatever's left over from packaging and advertising" but that's not going to be that much. So the record company is making very little off this deal.

    Really, if this shows anything, it is that the current system is too cost intensive, and that if it were optimized, there may be a better way to save money, and make sure everyone gets paid. It's not a conspiracy people. It's just common sense. These fees have to paid somehow, sure they may be high, but they are still necessary costs.

    Personally, I don't see a problem with the record companies persay. I see a problem with how the money is spent recklessly. If you like a song, buy the CD, sure the artist doesn't get much, but it will make sure that more music like it is made in the future. All of those other costs have to be covered as well. If the only people who pay for CDs are people who listen to Britney Spears or Enrique Iglesias (Not saying they aren't good singers), then the only CDs that will be made are those by B.S. and E.I. The artists people are willing to pay for, and make sure that the investments that these companies put into them are returned.

    It's simple math, that's all it is, and that's all it will be. It's not a revolution, or a conspiracy.

    --
    ~ kjrose
    1. Re:Mathematical Analysis by armaghetto · · Score: 1

      $829,900 is assuming that the advertising, packaging and studio fees don't overlap with "the label." I'm sure "the label" would have it's own marketing department, and maybe engineers and recording facilities. These are fees assessed to the band, but do they get the full value of the fee? If the band sells 500,000 albums or 10 albums, does the label send out a proportional amount of "free goods"?

  135. Sorry, but I disagree... by TibbonZero · · Score: 4, Insightful

    I think you're totally off. It's about the music, sure. But at the same time, it's a music industry or a music business, neither are music philanthropy.

    I'm a student at Berklee College of Music, and a very serious musician. You do music because you enjoy it, but at the same time- by the time i'm outta here, I'll have over 60 Grand in college loans and i'll be damned if I just 'love music' and not try to pay that off, get a house, get a car, etc.
    I really enjoy music, and so does everyone at Berklee. Who doesn't wanna be a rock star though? No, it's not all about money. But you can't live in a cardboard box and play in the subway forever, well some people do, but not me.

    And have you considered that if you are a real musician out there doing it you better be making some money to pay the bills, even if you don't get any of the money for yourself.
    Studio time is over $100/hour at anywhere decent. Guitars are $2000+ for ones of good quality. A drumset is gonna run at least 2000 also. Think about microphones, preamps, speakers, etc. Ok, that's just the items. But at the same time there's people that need payed. Your manager, booking agent, business manager, accountant, cover artist, web designer, producer, engineer, roadies, lighting designers, etc... They all need to live too, and if you are just playing at people's houseparties, you can't make the money to pay them, let alone you. And don't tell me that professional musicians do it all by themselves. Just open up any cd and look at all the credits. They need to get paid. Go to a concert, it makes money, but it costs money to start up. You need a lighting and sound system, tour busses, etc.

    Yes, I love the music. But as a real professional, it's insulting to not try to get paid for your talent. Most programmers program because they enjoy it, but at the same time, program what the boss says, not whatever they are doodling away on randomly.

    --
    Tibbon
    tibbon.com
    1. Re:Sorry, but I disagree... by Anonymous Coward · · Score: 0

      as with any investment, you must analyze your return and the associated risk. In the music business, you risk that no one will want to pay you for what you do. You have every right and obligation (with the student loan) to try and make money from it but no one has an obligation to hire/pay you for anything.

      it's a market and things are a changin'

    2. Re:Sorry, but I disagree... by Anonymous Coward · · Score: 0
      No, I think you just proved his point. No one is going to pay 60k for shool unless they plan on 'making it' in that field.

      I hope you make it, but you are aspiring to be an advertisment. One for yourself to the record companies, and then (hopefully) again for the record companies to me. That will take exaclty what you are describing:

      Studio time is over $100/hour at anywhere decent. Guitars are $2000+ for ones of good quality. A drumset is gonna run at least 2000 also. Think about microphones, preamps, speakers, etc. Ok, that's just the items. But at the same time there's people that need payed. Your manager, booking agent, business manager, accountant, cover artist, web designer, producer, engineer, roadies, lighting designers, etc...


      Thats is as you say, professional, to be sure. But what that isn't is the guy who plays at the corner bar every tuesday. This guy isn't interested in a record deal and he has a day job. He relates his music to everyone who walks in because he hasn't sold out to the current formula, he is still raw. In fact he doesn't even have an album to sell to the 8 billion 13 year olds that the record companies might tell him he needs to market to. He doesn't _want_ to make an album, he just makes music up as he goes. Its about the music to him. And he rocks.

      Good luck to you.
    3. Re:Sorry, but I disagree... by TibbonZero · · Score: 1

      Thats is as you say, professional, to be sure. But what that isn't is the guy who plays at the corner bar every tuesday. This guy isn't interested in a record deal and he has a day job. He relates his music to everyone who walks in because he hasn't sold out to the current formula, he is still raw. In fact he doesn't even have an album to sell to the 8 billion 13 year olds that the record companies might tell him he needs to market to. He doesn't _want_ to make an album, he just makes music up as he goes. Its about the music to him. And he rocks.
      No doubt, and I have much respect for him (man who doesn't 'sell out'). The only thing is that for me- music is also my day job, and theirfore must pay. I personally don't wanna be a guitar god or pop diva (because that would require a sex change), but rather a Producer or Engineer- it's too risky IMHO to try to only be a rock star. I don't wanna make just bubblegum pop, but if the electric company or landlord want money- you gotta do it. I would rather work with bands like Radiohead, but for now i'll take whatever pays. :)

      Yea, I sell out, but at the same time- doesn't everyone with day jobs?

      --
      Tibbon
      tibbon.com
    4. Re:Sorry, but I disagree... by incog8723 · · Score: 1

      I think you're totally off. It's about the music, sure. But at the same time, it's a music industry or a music business, neither are music philanthropy.


      I think you are the one who doesn't understand. Music is most certainly not an industry, and until the last century, it never was. Music is an emotional release for the artist, and hopefully for the listeners. It's not a 'profession' as you put it. It's art. Art is not work. Art flows, and art engulfs those who GET it.

      The very fact that you had to go to an art school tells me that you intend to make a business out of whatever talent you might have, rather than focusing on the thing that matters: making GOOD art. Money DESTROYS art. A starving artist will ALWAYS write better stuff than someone who is getting paid (anything.. even if it's just 40k a year).

      You have no clue as to what art means. Art is the expression of emotion, and when artists are completely pacified, with tons of money, there is no emotion left. they are PACIFIED, and there is no more art.

    5. Re:Sorry, but I disagree... by MindSlap · · Score: 1

      I'm a student at Berklee College of Music, and a very serious musician. You do music because you enjoy it, but at the same time- by the time i'm outta here, I'll have over 60 Grand in college loans and i'll be damned if I just 'love music' and not try to pay that off, get a house, get a car, etc.


      60 Grand?!?!
      Are you HIGH?!
      Sure..I like music too. And I play guitar as well.
      I picked up a MUSIC BOOK...Learned to play on my own..started a band..and had a good time.
      After that.. I got REAL..got a real JOB and got that house, car..etc.
      Oh..and the old music book.. It only cost 20 bux.

      If you have the TALENT.. You should have to pay 60 grand to learn a few tunes...

    6. Re:Sorry, but I disagree... by TibbonZero · · Score: 1

      If you have the TALENT.. You should have to pay 60 grand to learn a few tunes...

      I know what you mean, but people who get real jobs- rarely get major record deals, own studios, etc...
      And I agree, i'm not there just to learn guitar, but rather to work on Production and Engineering... which is kinda hard to teach yourself..

      --
      Tibbon
      tibbon.com
    7. Re:Sorry, but I disagree... by TibbonZero · · Score: 1

      I disagree. For one thing, there's alot more at Berklee than just playing music. There's Music Therapy, Music Business, Music Synthesis, Music Educaction, Music Production and Engineering, etc...
      Those are things that you definately need to be schooled in before you do them. Do you want people teaching music who have no idea what they are doing? Do you want people being your Manager if they don't know anything about contracts? Perhaps you like lawyers that got their bar license from a TV ad.

      Berklee doesn't suck the life outta music. People who aren't musicians don't really understand all that goes into it. For a second I will assume that you have played an instrument at some point. Ok, so you have 'talent' or you have the 'feeling'. Now can you write horn charts? No? Can you write music properly? Can you transcribe music after only hearing it once or twice? Do you know what chords would sound like before you play them, or do you have to use trial and error?

      I agree, that hard conditions make better lyric writers. There's alot of 'art' to it, but you have to know what you are doing too. There's a TON of people who have won Grammies who went to Berklee.
      I bet you like or listen to some of them.
      The music industry is getting harder and harder to get into. People are finding that just leaving High School and playing guitar isn't gonna pay the bills, and they want more. I am glad I am at Berklee- but yes, I do plan to make business of it, but then again, I want to be a producer or engineer. Berklee doesn't make you want money only, but you need to pay for things, and people expect to get something for their time..

      How many coders put 'soul' into their 'art'? Yes, those long hours of code are written better by underpaid programmers. They get better illegal operations or stack dumps...

      --
      Tibbon
      tibbon.com
    8. Re:Sorry, but I disagree... by darcybrown · · Score: 1
      The only thing is that for me- music is also my day job, and theirfore must pay.
      A 'day job' in music is a tricky thing, its hard to distinguish between what is art and what sells next week. Setting your self up to _have_ to make money at it ensures that you will be interested primarily in what sells next week. The current state of music is geared to facilitate just that. Nowadays, its 'okay' to sell out because 90% of all the others are doing it too. But does that make it okay? No. As an artist, you have a responsibility to be honest with me as a listener, and with yourself as a musician. Otherwise what you are doing may as well be bubblegum pop, because it will only last that long.

      How do you avoid that? You avoid it by not depending to make your livelyhood from it.

      If you are lucky enough that people pay you at _all_ to express yourself and relate to them, then by God you are in a swell spot. At my programming day job, they don't pay me to do that, although my stack dumps may be more creative than the next guy's.
  136. I could be wrong but by Eric+Savage · · Score: 1

    Most of these "labels" are just vanity imprints like you see in book publishing. The suits give an artist a varying degree of independence in exchange for past success. Also its not just rap groups, its everyone now. Practically every CD you buy from a big group after the first one has some kooky record "label".

    IIRC:
    Grand Royal was part of Capitol.
    Death Row was part of Interscope

    But:
    No Limit was actually independent, which explains the big lack of air/video play. (It's either that or the fact that everything on it sucks)

    --

    This is not the greatest sig in the world, this is just a tribute.
  137. how many albums.. by Anonymous Coward · · Score: 0

    ..do you have to sell to have a sweet pad on Cribs?

    I mean, how many albums did B2K sell? Most of those 18 year olds have about $400K worth of car kit.

    At some point it must get a little more reasonable, but I agree the music industry exists to keep most artists down.

    1. Re:how many albums.. by Queuetue · · Score: 1

      Most of those 18 year olds have about $400K worth of car kit.

      Maybe. Or maybe the bank owns all that kit, and they'll just scrape up the monthy for as long as they can.

      (BTW, I don't actually know what "on Cribs" or B2k is.)

  138. Merchandise??? by Whitecloud · · Score: 1

    Hmm. I dont think Lars Ulrich, drummer of Metallica could afford his luxury mansion on that income, which makes me think: marketing. Big bands, and little famous underground bands rely a LOT on marketing their expensive knick-knacks to fans for the bread and butter income. T-shirt sales are the reason bands can afford to tour.

    --

    Do you need a website upgrade?

  139. Picking nits here, by mckwant · · Score: 1

    but as I understood it, Albini mixed In Utero, handed it back to Kurt, who absolutely hated it. IIRC, they re-remixed the entire album, and the result is what we're all familiar with.

    I may be wrong, of course, but that's how I remember hearing the story.

    --
    ceci n'est pas un sig.
    1. Re:Picking nits here, by Mojo+Trolljo · · Score: 1

      What really happened (from one of Kurt's biographies) is that Albini was highly sought after by Kurt for work on In Utero because of some of his earlier recordings -- Pixies' Surfer Rosa for example...
      Kurt wanted and liked the raw signature sound of Albini's -- it was the record company that hated it. And there was a lot of pressure to have it re-recorded and remixed, but both Albini and Nirvana resisted. Essentially only Heart-Shaped Box and All Apologies were remixed by Andy Wallace (same guy as on Nevermind).

      --
      This post was made by I, Mojo Trolljo, for you to read that was written by I who is Mojo Trolljo!
    2. Re:Picking nits here, by mckwant · · Score: 1

      Thanks for setting me straight, but I liked my version better. It's eviler.

      Stupid facts.

      --
      ceci n'est pas un sig.
  140. Steve Albini should sue. by Anonymous Coward · · Score: 0

    It was insightful the first time....10 years ago.

  141. the concerts by Anonymous Coward · · Score: 0

    am I the only person who knows that musicians make all their money on concerts? many of these artists who only get 40K off their cd get tons more in performances and promotions. i still dont think it's right that they only get the 40K though....

  142. Thats not true--Many bands stay in the bar circuit by sailor420 · · Score: 1

    Many bands stay in the bar circuit indefinitely. They arent all out looking for record deals.

    It does, however, depend on the music you are referring to. For much rock music, this may be the case. But this is not the case for many other types of music, especially blues and jazz. There are several blues bands (and quite good ones at that) that have played at the local blues bar for twenty years. And you would be surprised how easy it is to like blues--after all, its what rock came from: rock borrows its scales and chord progressions from blues.

  143. Pity the RIAA cohorts... by atassaad · · Score: 1

    ... they're only trying to milk the cow for all it's worth before they lose control utterly to their inevitable disintermediation via the internet. My suspicion is that rather than trying to stop present piracy of the records they produce for the short term gain, they are trying to hobble the internet and computers as a future distribution medium where they do not participate as brokers-cum-robber-barons.

  144. Re:The artists will surely revolt, and in the end. by Alsee · · Score: 0, Flamebait

    In the 21st century, no successful business model will be constructed based on the sale of recorded music for any price -- without the widespread implementation of DRM technologies

    Bullshit.

    -

    --
    - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
  145. Re:RIAA pays more than pirates do. by b!arg · · Score: 1

    I'd have to think twice about those numbers. I'm no record insider or anything, but those numbers seem to assume the only money they get is from record sales. Let's not forget the money made on a tour and especially the merchandise sold. If I'm not mistaken, this is where a lot of artists make a lot of money. I believe they get the bulk, if not all of the money on those sales. But then I could be wrong.

    --

    Everybody dies frustrated and sad and that is beautiful
  146. I [am doing it] My Way.... by /Idiot\ · · Score: 2, Insightful

    Well, translating things to $AUD... here's my workings per 100CDs being completely independant:

    100 good quality CDs with cases - $100
    Ink Jet Ink + good Paper for cover - 100$
    $4.20/disk postage Aust Wide for disks not sold at gigs.

    Assume:
    75% of disks posted (not sold in person)
    Own web site for promotion
    Owns PC/MAC w/ Burner + Printer
    Owns instruments
    Time Burning disks, printing & cutting covers etc is free*.
    Time writing & recording music is free*.

    The first 25 disks in each box that are sold at the door at gigs are going to cost me $2.00ea = $50.00.

    The second 75 disks per box will have an extra $4.20 added - which is the cost of posting a CD anywhere in Australia via Aust Post. They will cost me $465.00 to produce.

    Total cost $515, avg $5.15 per disk.

    Charge $10 per disk at gig or over web, claim free postage for web customers.

    For each box of 100 you sell, you get $1000 cash, $485 of this is profit.

    So sure, I will need to sell 300 & 1/3 boxes of CDs to get the $161,909 that those guys got.

    Here's the big difference to me: I have a nine to five in a good profession, writing and performing is a weekend interest. I never intend for it to make a single red cent, if it does well good. I always assume that any costs I incur in my music making is money on a hobby.

    This has a distinct advantage or two, 100% artistic control, 0% risk as I am not relying on the cash for rent etc. I can take my sweet time and it never has to mean anything to anyone but me.

    -Idiot

    * - By free I mean that I am a hobiest. This is the time I was going to dedicate to the project anyway.

    --
    /dev/Idiot/
  147. Saying how sucessful touring is due to Phish & by Ted_Green · · Score: 1

    Is like saying how sucessful the dotcom economey was because of Amazon and Ebay.

    Both groups are very sucessful in their respective generes, however they are in no way represenitive of those generes. Many bands have tried things that the TGD and Ebay have, but most have simply failed.

    As far as labels having it backwards.
    No, they don't.

    They know how to promote, get play on the radio, and get advertisments. They set up the system, so they *can* work it.

    I know a great number of *extrmely* talented artists (the DC sceene is choke full of em, if you ask me) and unless they have a well known name backing em up, its dificult to get more of an audience. ..lots of it is simply phsycological. We tend to like music we think is supose to be good. And we tend to like music we've heard before. *shrug* most of us anyways

    Very few talented muscians will ever make it rich. But really, that's ok, because most very talented muscians I know of don't care so much about the money (that is to say care about money more than the average joe) as they do about playing. (And to a degree playing for others who enjoy it).

    *shrug* just my view though.

  148. If... by stubear · · Score: 1

    ...as many here keep saying musicians do it for the love of music, why then should it matter how much money that have in the end? If, as many here also say, it's ok for Red Hat to make money off selling Linux solutions, then why should it not be ok for the record labels to make money off the musicians? They are giving back to the community by paying artists some money and building an ever increasing stable of artists and musicians from every genre of music imaginable.

  149. Re:The artists will surely revolt, and in the end. by shylock0 · · Score: 1
    Care to posit one, perhaps? Why would anyone pay for something they can get for free? Would you pay for GIMP? How about EMACS? How about a Linux distro (w/out support)?

    Without DRM, music is free. And the public will never accept DRM. QED.

    --
    Statistically speaking, there's a 99.998% chance that my IQ is higher than yours. Get over it.
  150. Conveniently left out. by serial_crusher · · Score: 1

    How many musicians are in multiple bands? Max Cavalera is/was in Sepultura, Soulfly, and Nailbomb. Phil Anselmo was in Pantera, Superjoint Ritual, and Down. Dan Lilker has been in Anthrax, SOD, MOD, Hemlock, Nuclear assault, etc. That 40 G's per band adds up. Lets also not forget the fact that music is the work that keeps on working. Phil Anselmo is still getting royalties on Cowboys From Hell, and it's been what, like 13 years since that album came out? Now lets add in the money they get from DVDs, T-shirts, concerts, etc. I'm suddenly remined of that cartoon Ducktales, where Uncle Scrooge would swim in a pile of money.

  151. Re:RIAA pays more than pirates do. by serial_crusher · · Score: 1
    So I live in Blacksburg Virginia. Not too many big concerts come here. Sure there are a few good local shows, but when I want to hear Pantera, I want to hear Pantera, and Pantera deserves a reward for entertaining me so.

    According to the "only pay them for live concerts" business model, they'll have to go to every small town in the world to ensure that every customer pays their share. Then thanks to the expenses, I'll be paying $500 a pop for my personal Pantera concert, and Pantera will only get about 20 bucks out of it.

    Then everybody will complain about how tragic it is that they only make a fraction of their ticket sales.

    So here's an idea that works. If you like it, and they want money for it, give them the money. You're not their mommy. They can decide how their own business works. If you don't want to pay for the band, don't pay. But don't steal either. That's just not right. If a band wanted you downloading their mp3s, they'd put them on their website.

  152. This confirms what we knew.... by sydbarrett74 · · Score: 1

    This merely confirms what we already knew intuitively. Musicians don't make money from records. In fact, a record can be viewed as an advertisement. They make money from merchandising, endorsements and ticket sales.

    --
    'He who has to break a thing to find out what it is, has left the path of wisdom.' -- Gandalf to Saruman
  153. There is no doubt. by eniu!uine · · Score: 1

    That programmers need and deserve groupies as much as anyone else. They would revolutionize the industry.

  154. Noting recent /. economist, it would be more like by MickLinux · · Score: 1

    1 song @ $70000 x 3 downloads = $210000

    Those 3 downloaders each sell to twenty CD burner companies at $10000/pop.

    Each CD burner company burns it on 10000 CDs and sells aboult half of the CDs at $1.50/ea, the other half at discount for $.50/ea. Of those, 2 of them also make MP3s available online, and sell those MP3s at $1 each.

    The users exchange it freely on napster, and some people do get it for free -- others have to pay about $1.

    --
    Correct Horse Battery Staple: 72 bits of entropy. Enter "Correct H" into google. When it generates the phrase, that's
  155. The Kinks covered this story thirty years ago... by linuxjack55 · · Score: 1

    In a song called "Moneygoround" from Lola vs. Powerman and the Moneygoround.

    For your listening pleasure:

    Robert owes half to Grenville
    Who in turn gave half to Larry
    Who adored my instrumentals
    And so he gave half to a foreign publisher
    She took half the money
    That was earned in some far distant land
    Gave back half to Larry
    And I end up with half of goodness knows what

    Oh can somebody explain
    Why things go on this way
    I thought they were my friends
    I can't believe it's me
    I can't believe that I'm so green

    Eyes down
    Round and round
    Let's all sit and watch the moneygoround
    Everyone take a little bit here
    And a little bit there

    Do they all deserve money
    From a song that they've never heard
    They don't know the tune
    And they don't know the words
    But they don't give a damn

    There's no end to it
    I'm in a pit and I'm stuck in it
    The money goes round and around and around
    And it comes out here
    When they've all taken their share

    I went to see a solicitor
    And my story was heard
    And the writs were served
    On the verge of a nervous breakdown
    I decided to fight right to the end
    But if I ever get my money
    I'll be too old and grey to spend it

    Oh, but life goes on and on
    And no one ever wins
    And time goes quickly by
    Just like the moneygoround

    I only hope that I'll survive

    --
    The trouble with practical jokes is that very often they get elected. -- Will Rogers
  156. Something Witty by Anonymous Coward · · Score: 1, Insightful

    Production often includes PR, M-tv model, leverage for cd space, etc.... Often it seems; it is instant band, just add people.

    The advantage now is the one source model. In a few years the previous model may loss it's monopoly control and have to start selling to consumers who simply have more choices. Staying in step cost very little and you don't hang yourself in the process.

    With the RIAA blessing, the pick of the crop can come from a weekly email (but outsourcing can become dangerous to the livelyhood of business models that use it-as history can attest). The M-tv and radio models still maintain the best selling practice and the mp3 habit doesn't necessarily get broken. Plus, gaining a wider base of artists allows flexibility and potentially legal/legit stats can be good.

    I thought 12 channels of pure freedom was enough, but what do I know, lol. And thanks for the alternative spout.

  157. Grass Roots by Anonymous Coward · · Score: 0

    I think the only way for us to change the system would be to bypass all the bad parts. Everyone should only download music from now on. And send a $3 check to the artist for the CD we downloaded. If you downloaded only one song, send one for 50cents. If everyone who downloaded did this, the artist we love would have their money. And the people we hate who get in our way would not. All artists should really setup a PayPal account so this form of micropayment could be possible.

    Grassroots activism by superempowered individuals through the internet is the only way we are going to get our message across.

  158. Everyone talks about Courtney Love's speech by Savatte · · Score: 1

    which is good and fine, but I also reccomend reading Diamond Dave's autobiography, Crazy From The Heat. Aside from being hilarious (he claims those kicks he did on stage were invented in feudal Japan when weapons were banned and they were designed to knock a guy off a horse), there is a very informative chapter on where all the money Van Halen made went.

  159. Oh Jeez.... by thumbtack · · Score: 1

    Your trying to make it, and someone offers you $150,000 to make an album, when you been living on peanut butter and jelly (on the good weeks) You are probably going to take it.

    When a lot of people don't realize is that the indepents are in the situation they are in because of the RIAA labels. The control the distrbution, the airplay (through payola), they control the gold records, (it took 5 years after John Denver's death for an accounting which award him 19 more gold records, kinda makes you wonder if he was paid for those)

    No one forces you to borrow money from loan sharks either, or to pay 21% interest on credit cards, But millions do everyday....

  160. Music in the little leagues by yoink! · · Score: 1

    Without getting into the RIAA vs. Privacy vs. Fair Use debate (which is so tried at this point) I think one of the best things to be returned to artists recently is the power to go independant. Independantly produced and released albums rarely gain acceptance the way main stream, and massively marketed music does, but it allows the artists themselves to stay true to their roots and develop a much more community oriented approach to music. It improves diversity and encourages competition on a local and global scale, something which is good for artists and fans alike. It is an exciting time in the music industry, perhaps even a time where the focus on music becomes more important than the focus on industry. Copy.

  161. I just wanna be a rock star... by PunkXRock · · Score: 1

    "I don't want to be
    a loser...no!...
    I don't want to be
    an almost was
    I don't want to be a white trash
    Working class chump
    I don't want to be a loser anymore

    That's why I want to be
    a rock star
    I want to be the king
    I want to be on top, yeah
    I just want to be a rock star"

    Everclear, Rock Star
    Full Lyrics

  162. Completely missing the freakin POINT by serutan · · Score: 2, Interesting

    This article admirably illustrates the difficulty of making money from record sales, but it fails to mention that making money from record sales is not the point of making records. At least not for musicians. For musicians the point of making records is to get Exposure. Working musicians make their money by performing, and exposure translates into gigs. With an album on the charts, the Grungenuts, or whatever the hypothetical band was called, should expect to rake in some respectable bucks playing large venues. That's what making records really buys musicians.

  163. How Familiar! by BaldBass · · Score: 2, Funny

    Really fun stuff, thanks for the link.

    Even funnier, with some find-and-replace the piece looks strikingly similar to a software project diary. Same efficiency and same outcome. I guess.

  164. Radio airplay, MTV by dachshund · · Score: 1

    Thanks to independent promoters, you can't get a song played on commercial radio or MTV without paying big bucks. It's possible to build up a following without these vehicles, but in practice it's very, very difficult.

  165. Business by dachshund · · Score: 1
    Besides leaving your label at that point means other labels probably won't want to touch you because _they_ won't make as much money from you, since you'll know what you're really worth

    Furthermore, the labels have learned that it's not in their best interest to be highly competitive over artists, except for the very few cream-of-the-crop megastars.

    By presenting a united front, everyone makes more money.

  166. Re:RIAA pays more than pirates do. by Anonymous Coward · · Score: 1, Interesting

    Parts of the new business model: you pay for a CD, with pictures, lyrics, things like that. You can make copies for yourself and for friends. You can also share on the web. You can't resell for money.

    You can sell concerts, since there's a big bouncer at the door who will rough you up if you don't pay. Some acts will let you tape or make videos. Again, same informal distribution. Big acts will put out great videos with directors which people will buy. Beginning acts, or anarchists, let people tape. Best cred you can get with fans. Better publicity than if you had, well, a publicist.

    It's up to musicians to figure out what will get people to pay premium prices. Maybe the opera, or other long-form music, will come back. The three-minute jukebox hit parade payola machine is probably dying. Good riddance.

    All music shared on the web is tracked for numbers of unique downloads. You pay an extra $5 (say) a month for copyright network sharing. collected at the ISP, and the artists get most of that. Why not? The label goes to no expense whatever. Keeping track of the popular downloads, and cataloguing all music ever recorded, can be done by a google appliance. SuperNapster.

    With half the population of the world listening and sharing every week, that's a heck of a lot of money. Split it up as you see fit. Add in concert money, and, yes, CD, SuperCD, DVD Audio sales, and there's probably more money in the business than ever.

  167. bwahahahahahaha by Anonymous Coward · · Score: 0

    Oh my god. That post sums up the stupidity of most slashdotters.

    Please, start this hypothetical database and let me know how you're doing in 10 years.

    Service it doesn't provide? You obviously don't have a clue...

    (I actually work for a record label, so I have a little insight..)

  168. the real money is... by Anonymous Coward · · Score: 0

    ... in touring, anyway. CD sales are just promotion for the tours.

    1. Re:the real money is... by Dossy · · Score: 3, Informative

      Someone needs to moderate this up as Informative. It's so very true -- bands aren't supposed to expect to make money from selling their recorded music. The money is supposed to be in touring ticket sales, and maybe royalties for soundtracks, etc.

  169. You don't need the RIAA in todays world by solostring · · Score: 2, Insightful

    I've heard so many real-life stories like this, where record company execs get rich off of someone else's talents, and the artists themselves get very little. Most signed artists that I know end up owing money to the record companies (unbelievable but true)

    I'm not a signed musician, yet last year, I made about $12,000 from my music. Whilst this was by no means a good salary, it is certainly more than any non-gigging musician that I know. The vast majority of that money was from selling homemade CD's directly to the public.

    You don't need the RIAA in this day and age. With the power of the internet/mp3's & (god forbid) paypal, who needs a coccaine addicted suit to take the food from your mouth?

  170. The World is Polluted With Music! by UcensorMe · · Score: 2, Insightful

    One big reason that musicians get screwed on record deals is because there is no shortage of good bands out there. Pretty much everyone knows a killer guitar player or song writer and probably have more then one on their block. The distribution channel and mediums for discovery are so limited that only a select few are allowed to take advantage of them. Thanks to the monopoly of the airwaves much of the talent in the world goes unnoticed. Don't let your taste in music be dictated by corporate greed.

  171. Re:RIAA pays more than pirates do. by Afrosheen · · Score: 3, Interesting

    If Pantera is charging $500 a pop for tickets, they need to re-evaluate where their money is going.

    There are dozens of punk rock and smaller alternative bands that tour every year, with or without a big budget. Greedy whores like Bikini Kill won't leave home without a guaranteed $10k payout, but bands like Armchair Martians or Scared of Chaka will roll out for a few hundred bucks TOTAL. Sometimes things get fucked up and they have to play to a small crowd and get paid with beer and food, but that goes with the territory.

    In the final analysis, bands don't really need enormous touring busses, 5 star hotels and new guitars for every show. They don't need their promoter taking 10% of their cut. If you cut down your overhead and subscribe to the DIY philosophy, you can make it on your own without a major label rolling out a magic carpet for you.

    Remember, most bands you know and love probably started out in someone's basement or garage, and probably borrowed the minivan on the weekend to go to shows. Then again, bands these days are basically born from corporate labels and aren't as homegrown as they used to be.

  172. Steve Albini by dalangalma · · Score: 1

    Steve did much more for The Pixies than he did for Nirvana. And Nirvana's just a mediocre Pixies cover band anyway...

  173. voluntary donations: optimal solution by Anonymous Coward · · Score: 0

    how about instead of 500,000 people buying the album, 1 million download it for free and 100,000 of these each donate $5 to the band thus leaving each band member with $125,000 each - instead of the $38 grand each with the current model.

    For more details on a donation type music model go here and also suss out MusicLink and also Cringely article on the topic.

  174. News of nerds by Pedrito · · Score: 1

    Isn't this Slashdot? Isn't this news for nerds? Everyone knows nerds don't become rock stars, Peter Gabriel and Herbie Hancock being possible exceptions. So, why is this news for nerds?

    Hasn't this been covered before? I think about a year ago, maybe more, Slashdot posted a link to an article by Courtney Love that made a similar analysis with similar results.

  175. Re:The artists will surely revolt, and in the end. by Alsee · · Score: 1

    the public will never accept DRM.

    I certainly HOPE your right, but it is far from certain. There is an enormous TCPA rollout on the way that intends to make DRM a casual detail of everyday life. This is scary not just because of the staggering multi-industry backing it has, but because they have an extremely plausible path to getting it into virtually all computers and devices over the course of a few years.

    Without DRM, music is free.

    Music has been available for free ever since radio and tape recorders. The recording industry predicted cassettes would kill the industry. Movies and programming have been free since broadcast television and VCR's. The MPAA predicted VCR's would kill the industry. In both cases the industry made MORE money once they adapted to the new tech.

    Just because the recording industry has deliberately CHOSEN not to compete in an online market for music certainly does not mean one cannot exist. The fact that the recording industry has REFUSED to sell music online has been the major driving force behind the explosion of the various P2P networks.

    In the last few months the recording industry has made a pathetic token gesture at selling music online. They are selling DRM crippled products. They are offering limited selections (they withhold most popular music to avoid "competing" with their offline market). Their prices are unreasonable (purchasing downloads should be signifigantly cheaper than purchasing a packaged object from a retail store). And perhaps worst of all they have an uphill battle because they have handed P2P a FIVE YEAR first-mover advantage. All four handicaps are completely self-imposted.

    Even with these four fairly severe handicaps I believe they have still managed to capture tens of thousands of customers. If they drop the first three handicaps they can still manage to overcome the fourth and capture a large and profitable market. The internet offers them access to an enormous market/distribution-channel with nearly 100% profit margins. If they choose to they can create/provide a service that would far outclass P2P is several ways. The longer they wait the harder it gets,

    If you want links with even more support try this National Association of Recording Arts and Sciences paper and here, particulary sections 5 + 6.

    Saying that the internet will kill the music industry is absurd. You're a victim of RIAA propaganda.

    -

    --
    - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
  176. Re:RIAA pays more than pirates do. by Anonymous Coward · · Score: 0

    You could just buy music from bands who cut out the middleman...

    Is this a prototype of the future of the music industry?

  177. $40K? Oh man... by TheShadow · · Score: 1

    This is horrible. I feel bad for bands that this happens to... groupies don't want to have sex with guys that only make $40K a year. What a shame. And $40K/yr isn't nearly enough to sustain a cocaine habit. How will they ever get on behind the music?

    --

    --
    "What do you want me to do? Whack a guy? Off a guy? Whack off a guy? Cause I'm married."
  178. Don't Blame The Internet by mattfish · · Score: 1

    If the band/artist is goning to complain about the Internet as being a tool to destroy the lives of the people in the music industry they need to find a new job. Music sharing was done way before the internet and they had to of known that P2P sharing was going to be some new wave of the future.

  179. "The Media" Doing the Math by Enkerli · · Score: 2, Insightful

    Looks like an interesting reversal, if it can happen. After all, the music industry is intimately linked with mass media. This article wasn't signed and we don't know how much media-cred it can get but it's interesting nonetheless.

    For a while, the Press has favored a "RIAA vs. Net" view of the situation. Actually doing the math is a step in another direction, raising a lot of old issues and a few new ones.

    We all know the current model has a problem. Even RIAA members know this. There has to be a new model that will satisfy everyone in the food chain.

    --
    Alexandre http://enkerli.wordpress.com/
  180. Three letters: BBC by DoctorRad · · Score: 1
    You can stream possibly the best radio in the world direct from here.

    Dr. Matt...

  181. The situation is really a bit worse... by logicassasin · · Score: 1

    What this article forgets (and this is actually kinda major) is that the artist usually don't see anything until all of the costs involved in making the album are paid for. What this means is that the band gets 15% of the NET profit not gross sales. Everyone has to get paid before they see a dime.

    --
    Fifty watts per channel, baby cakes.
  182. Hatch's epiphany by andcal · · Score: 1

    Joe Beancounter from the RIAA or the MPAA doesn't get the publicity shots shaking Senator Hatch's hand

    And when Senator Hatch changes his position on the whole DMCA thing, it doesn't get the same attention, either. It's been years since this Register article . I have heard people express their doubt as to the senator's actual honesty regarding this issue, but I have not heard anything since then of actual substance (no one saying that he has gone on record one way or the other since then). Someone catch me up if there is anything newer.

    --
    --something witty
  183. Re:RIAA pays more than pirates do. by pbrammer · · Score: 1

    Yes, but those numbers are what the artists receive through the RIAA's system. Sure they get other income, but the moral of this article is that of over $8 million in sales, each member of a 4 person group will get about $40,000. That's horse shit. Cut out the middle man, and try to cash in on more of that $8 million.

  184. I must be a guru then! by pommiekiwifruit · · Score: 1
    A lot of people don't like anything that gets radio play,

    What with my yodelling CDs, Ivan Rebroff albums (over 65 years old and still touring!) and Ziesjoemsongs (even Dutch people can't understand them :-) and C64 remix tracks I must be so elite that I've come out the other side :-)

    Except that I listen to Kylie too...

  185. Getting hard to live outside the system by TheConfusedOne · · Score: 1

    The ongoing industry attempts to carpet bomb technology (especially P2P) will continue to make it harder and harder to work outside the sponsored music industry.

    Think, if all P2P networks are outlawed then how does a small garage band get their first album out? TCPA controls could severely limit the ability to create, edit, and publish music on a PC in the first place (all theoretical of course).

    It would be interesting to see how many DMCA take down orders would get filed if you ran a huge P2P server with only free music on it.

    --
    --- I wish I could hear the soundtrack to my life. That way I'd know when to duck.
  186. Anders Hejlsberg by pommiekiwifruit · · Score: 1

    is an example of one ($x million for signing with MSFT) Although you could say that was partly Microsoft trying to bury Borland.

  187. The real issue... by palx · · Score: 2, Interesting

    All this tuff is really nice and interesting. but i think to vaguely remember that artists do gain some pretty penny from airing their tunes too. I think this is also a good way to earn money for them. but excuse me if i digress. Recently my wife bought a CD reader by SONY. A Discman. It sported a nice, big, flashy write on it : "Also MP3 reader". Nice. Recently she bought the last Massive Attack album, nice music. Guess what? You put the disc on the reader and...silence! The reader made by SONY, is not able to read a CD protected with the same protection system invented by SONY. Funny stuff eh? My legit CD reader, is not able to read a legit store bought CD. Can u see a pattern here? For me this alone spells DOOM for the RIIA and all of his friends. THATS the real issue with the music today. If they do not solve this s**t with copy protection systems, some really bad 455 mojo is going to happen to them. If they do not get their acts together, soon there will be no more "record industry". My 2, off topic cents. P.S: Bye the way, the link to Albino's writing is really good. P.P.S: I phoned to a SONY representtative in my area talking to him about the reader/CD issue. He said he was aware of the story and that now SONY is looking into this. Many CD's do have this problem. He said that i was authorized to bring back the CD and eventually give his name if the store refused to take it back. He also suggested to me to (!) rip the CD, recording it in real-time with a recording software and encoding it in MP3. I found this really showing where this market is going. Down the toilet. KazaaLite for ever! Peace out.

  188. Re:RIAA pays more than pirates do. by b!arg · · Score: 1

    Oh yes...don't get me wrong. The labels are bigger pirates than any P2P network could hope to be. I just wanted to point out that this is definitely not their only source of income obviously. I'll always buy a CD at a show rather than from a store if I can. And I listen to local and indie bands almost exclusively. Mostly because it's just plain better. Not paying into the RIAA system is just an added benefit.

    --

    Everybody dies frustrated and sad and that is beautiful
  189. My calculation by pommiekiwifruit · · Score: 1
    Let's see, my most successful product:

    Sold 550000 units at $50 each = $27.5m. 15 months work for me, people: me, 1 assistant coder for a month or two, a years worth of art, a month for the musician, a few people months for the testers and producer. That comes to (just) less than four people equivalent. Let's say I made $50000 for that (I was younger then, as you can see by the low budget). That comes to 0.18% of total gross sales so you're doing well!

    Of course on my less successful projects I got a much better deal proportionately :-)

  190. Re: Mario Puzo by JaxGator75 · · Score: 1

    Read much Mario Puzo? "The Last Don", anyone???

    --
    Come and see the violence inherent in the system!
  191. Re:Sounds like A MONOPOLY economy to me by reptilicus · · Score: 1

    The problem with your comment is that it's not a "free market" at all. You have 5 companies, all in collusion, who control every aspect of the market. You have one company that controls nearly every aspect of exposure.

    If these companies actually had to compete, you'd have 1) lower cd prices, and 2) better treatment of artists.

  192. Selling records is a fluke in the history of music by reptilicus · · Score: 2, Insightful

    Think about it, humans have been music makers forever. Only in the last 50-100 years has the technology for reproducing recorded music existed. Only in that tiny window has a musician been able to make a living from selling those recordings. Who's to say that this isn't a blip, an oddity, one whose time is rapidly passing. And that musicians will go back to making a living the way they always have, through live performance (not that ClearChannel makes that any easier these days).

  193. Touring by PegQuin · · Score: 1

    You've got ot get out on the road, hold down your expensives and be sure not to set the place on fire.

    --
    PegQuin--I've got a sneakin' suspicion
  194. You are an: by JaxGator75 · · Score: 1

    Anonymous Troll ...and I work for a corporation, so I know! :P

    --
    Come and see the violence inherent in the system!
  195. good odds on that by twitter · · Score: 1
    You'll be in an endless cycle of listening to up-and-coming bands as they work on their routine, always leaving them off once they hit the big-time. Yes, not all bands aim for million-dollar deals, stadiums, world tours, etc., but as I said before, no band is going to keep playing local bars forever, no matter how much hometown/non-label support you can drum up.

    So what? With one in three thousand bands, "making it big", you won't meet one. You will hear music that's just as good because the average top 40 is still working on their routine. Those that are not working on their routine never had one to begin with.

    I'm wating for web casts from bars to break the RIAA hold on entertainment. It won't be much longer if the internet itself is not destroyed and people get smart about promoting themselves.

    --

    Friends don't help friends install M$ junk.

  196. Re:RIAA pays more than pirates do. by Anonymous Coward · · Score: 0

    The link in my previous post seems to have died, have a look at this link for an alternative.

  197. If *someone* is making money... by siskbc · · Score: 1
    ...I want it to be me. Note that you don't hear no-name bands quitting because they only make a few thousand $$ a year. They often keep doing it, even if it doesn't pay REAL bills, because they love it.

    Software development is a good example. People work for MS because they pay them to. People code for linux because they know they're making something cool for the community at large. However, what if Linus somehow (as if he could) closed the source to linux and started charging $100/copy for it. Would anyone keep coding for free? No.

    So people will do something for the love, OR for money, but not for neither. And if someone else is taking advantage of them without giving anything else back, expect them to be pissed.

    --

    -Looking for a job as a materials chemist or multivariat

  198. YOU EVER WATCH MTV CRIBS???? by rhoads · · Score: 1

    Why the hell do all of these pop stars live in mansions in Beverly Hills. They must be making money *somehow*!!!

  199. Re:RIAA pays more than pirates do. by Zekk · · Score: 1
    Greedy whores like Bikini Kill won't leave home without a guaranteed $10k payout, but bands like Armchair Martians or Scared of Chaka will roll out for a few hundred bucks TOTAL. Sometimes things get fucked up and they have to play to a small crowd and get paid with beer and food, but that goes with the territory.
    You're describing two extremes here. Bikini Kill is taking things a little too far (in your example), but a band that hopes to make a living so they don't eventually have to borrow a vehicle will need a little more out of a gig than food and beer. Finding the happy medium is tricky - many are broke and unknown, and ew are actually rich enough to quit their day jobs. Maybe bands are being born corporate because it's the way to survive.
    --
    .sig
  200. Re:RIAA pays more than pirates do. by Rovent · · Score: 1

    Unfortunately, I can't pull up the interviews here because of the SmartFilter, but. . .

    From what I remember, Nine Inch Nails, The Cure, and Depeche Mode all lost money out of their pocket doing their most recent tours, even though a majority of them sold out, t-shirts sales or no.

    Of course, they didn't need to do large, over the top, theatrical presentations (esp. NIN), but they said it was worth it to make the fans happy. . .

    - Rovent

  201. One bug with Albini's report by tmortn · · Score: 1

    That 40k only represents their end of the year bank account, most people I know would love to work/live for a year and have 40k more in the bank at the end of the year than they began with. Much less live a year as a 500,000 record selling major lable backed Rock Act copmlete with Groupies and red carpet events/treatment.

    Not that I don't think they should get a little thicker slice of the pie, just that those numbers are very deceptive. Perhaps that sanitation worker gets 40k a year but he spends that 40k to live on. At the end of the year they might have a couple thousand in the bank left over. In the mean time He/she was living paycheck to paycheck making rent/bills and perhaps hitting the club scene most weekends as a beer swilling drone.

    40k a year before living expenses and 40k a year after living expenses are two VERY different things.

    Record cuts need to come after expenses not before same as artists or artists royaties need to be figured before expenses same as the Lables cut.

    The Bands debt needs to be wiped out once the investment is paid back at reasonable return ( laws geverning loan sharking would be usefull here ).

    Right now the lables up front investment/loan to the artist is only considered paid off when collected from the artists royalties despite the fact the lable reaps back the amount invested and a good bit besides in its own share of the proceeds long before the after expenses royalties amount is sufficient to cancle that debt alone, and indeed it is carefully balanced so that few ever do.

    Less popular bands are not nearly the risk lables say they are. Take those numbers and set forth the initial money the record company plops down, now find the break even point on record sales for the lable acording to Albini's numbers. The number is alot lower than the 500,000 mark. Take those numbers... off the top of my head I belive it was $900k to the lable for 500k record sales or $1.80 and album. They invested 300,000 and got that back and a little more by the time 200k units were sold. Not to mention thats ONLY from their cut of the sales, they are also at this point collecting the artists royaties ostensibly to pay back their loan. So the record company has broken even from its cut and the artists royalties recieved to that point are whoely profit or return on the investment. If you called it square there then the artists recieves their royalties free and clear and the record lable continues to collect its share and that end figure for the artists changes a whole hell of alot.

    Lets put that in a simple sentence

    The lable collects its cut and the artists cut until the artists cut alone pays off the investment.

    Another way

    The lable makes money seperate of the artist on the sale of the album and yet only considers their invest paid off when the artists money pays off the loan.

    This is completely and totally unfair. You change that so that the artist's debt is cleared once the lable makes its money back plus a reasonable return and the artist starts collecting full royalties a hell of alot sooner than they do now. This dosn't impact the lables bottom line much ( changes their debt and profit lines accordingly but they sum out pretty much the same ) But it does remove the debt anvil they generally get to hang over the artists head for sub 500k album sales. I mean oh tisk tisk we made a bundle but you didn't make enough to pay us back, here we will loan you some of this money you made us so you can make us some more money and owe us even more.

    --
    I don't ask you to be me. I only ask you not expect me to be you.
  202. Re:Sounds like A MONOPOLY economy to me by Skim123 · · Score: 1

    I agree with (1) but not (2). The supply of wanna-be artists is so high that record companies don't need to have the band's best interests in mind.

    --

    I could not justify my existence if I were a turkey farmer. Would I terminate myself? Undoubtably, yes.

  203. P2P pirates are corporate saboteurs. by Anonymous Coward · · Score: 0

    While they might not steal anything physical, they do rob a seller of the opportunity to see if their product will sell. That, my friend, is sabotage. Expect to see sharers charged under RICO statutes, and downloaders charged with being accomplices.

    Pirates are gonna need a real long towel now for when they get to the bighouse.

  204. bah by Magius_AR · · Score: 1
    For people who supposedly have little to no income, they sure seem to have no problem coming up with the cash to fund their limos, drug habits, and huge houses/parties/etc...i've watched the television shows that show "an average day in the life of a rockstar", and it's not all thrift stores and dollar beers.

    To them all, I say buy a copy of Good Charlotte's "Lifestyles of the Rich & Famous", stop crying, and learn how to spend their money more properly.

  205. $15 dvd more entertaining than $15 music cd by Anonymous Coward · · Score: 0

    For sheer entertainment value for $15 you can :

    1. get a budget video game title for xbox, ps2, gc
    2. get 2 game titles for n64, ps1, older consoles
    3. get a budget video game for computer - like one of last years best games
    4. get a dvd
    5. go to a movie - 2 people - twilight show
    6. buy 1 to 3 used music cd's
    7. buy 1 or two used dvd's
    8. eat a budget meal out for 2 people.

    Which of those is much preferable to buying a music cd.

    This goes without saying that some music for modern games is playable in CD players.

    1. Re:$15 dvd more entertaining than $15 music cd by Anonymous Coward · · Score: 0

      Secrets of the Ya Ya Sisterhood and the like is excluded

  206. In other news.... by jxa00++ · · Score: 1

    At the 45th annual Grammy awards, the assembled crowd of music industry executives and celebrities eagerly awaited the announcements Sunday night because they knew full well that a Grammy boost could mean a surge in sales, or at least peer-to-peer file downloads.

    Up until just a few years ago, music consumers had to go to record stores and buy CD's with actual money. Not only was it damned inconvenient to drive to a store, but consumers (especially young consumers) rarely have that kind of cash lying around. There had to be a
    better way. Luckily for everyone, the Internet explosion of the late 1990's ushered in a completely new and vital business model for the
    industry: piracy.

    According to the RIAA, consumers have flocked to this new distribution system. Actual retail sales for 2002 were a fraction of what they had
    been before the advent of peer-to-peer file sharing, but since the music industry has yet to come up with a means of tracking downloads there is no real way of knowing. Available statistics make 2002 seem like a down year for the industry hen quite the opposite is true. Unofficial estimates of mp3 traffic indicate that music consumption shot up more than 150% in the past
    twelve months. Norah Jones' debut effort Come Away With Me is an excellent example of success in this new economic paradigm. Not only did the album receive several nominations including Best New Artist but it was also one of the most popular titles of the year, selling almost four hundred copies since its release early last summer. Industry experts say the numbers are excellent assuming the formula of seven thousand downloads for every retail sale. "Winning a string of Grammy awards is great," said Jones. "But I really hope this translates into more illegal downloads. Otherwise, it's just a
    statuette.My agent explains that I'm getting paid for this somehow. I'm not sure exactly how it works, but it must be the wave of the future."

    RIAA president and humanitarian Hillary Rosen says she is thrilled to see music piracy finally finding a home on the Web. "We tried making the
    switch years ago, but people just weren't ready in 1982 to form enormous anonymous sharing rings for bootleg eight-track tapes." Commercial music distribution is incredibly costly. Making sleeves, printing booklets, burning discs, it all adds up to an expense many in the industry believed was unnecessary. So, in the fall of 1999, a specially appointed RIAA task force designed and built the file sharing systems known as Napster and Gnutella. "I'm so happy to know that my organization has had a small part in this revolution," said Rosen. "It's all about getting the music out there - for the kids."

    Accountants have scratched their heads over this acceptance of music sharing, questioning how the industry can meet their expenses by giving
    away their product. Rosen giddily pointed to an official RIAA document, detailing how the music sharing business model works:
    Sign artists to lucrative deal.
    Produce album.
    Upload songs to Web for an unknown number of people to download and share.
    Profit!

  207. Well, if they made music that didn't suck... by c0d3h4x0r · · Score: 1

    ...and then they recorded it and mass-produced it themselves instead of going through a studio, then they would be making a fuck of a lot more money, wouldn't they?

    --
    Moderator hint: a comment is neither "Flamebait" nor "Troll" if it is true.
  208. Damn you, sir! by ravage · · Score: 1

    Astorsmash, I lost an entire DAY reading this!

    The writer is funny, has my kind of humor, and writes in a style that is extreemely addictive to read.

    What a great link.

    Just what I needed. Intelectual heroin....As if /. wasn't bad enough.

    --
    -- "Only two things are infinite, the universe and human stupidity, and I'm not sure about the former."- Albert E.
  209. You're missing a couple of points here. by Dolemite_the_Wiz · · Score: 1

    What about promotion and marketing of the artist other than the video? This sometimes is a big cost for the record company.

    All the Print Ads, publicity stunts and other costs associated with promoting a given band or album.

    Also, how much does it cost to make a CD? My money sez pennies on the dollar.

    Dolemite

    --
    Save the World! Use a Quote!
  210. Re: Mario Puzo by cymbaliner · · Score: 1

    Yeah I've read the Sicilian and the Godfather. I've probably read the godfather 5 times. It's one of my favorites. The Sicilian has a better plot but the whole improtance of the family (as a group of related people, not the business) aspect that made the godfather so interesting was lacking.

    --
    **Bob Dylan says: You never ask questions when God's on your side.
  211. Last Post! by alpg · · Score: 0

    The true way goes over a rope which is not stretched at any great height
    but just above the ground. It seems more designed to make people stumble
    than to be walked upon.
    -- Franz Kafka

    - this post brought to you by the Automated Last Post Generator...

  212. It used to be about a band... by $$$$$exyGal · · Score: 1

    It used to be about a band playing music for all of their friends, and maybe going from town to town scraping together enough money to survive. Now it's about a band playing the same music over and over again in a recording studio for a year, and then just barely scraping together enough money to survive. There are drawbacks and benefits with both methods, but the second way benefits the most number of consumers.

    --
    Very popular slashdot journal for adul