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How Labels And Artists Divvy Up Your Dollar Online

Subliminal Fusion writes "Business 2.0 has an article that breaks down where that $1 goes when you buy a song from iTunes or other online music services. Key figures: the site takes .40, the labels take .30 and the artists get a measly 12 cents for each download."

513 comments

  1. it should be 50/50 by ender_wiggins · · Score: 5, Insightful

    I would rather give the artist 50% and the site 50%. leave B&M sales to fund the other leaches.

    1. Re:it should be 50/50 by zcat_NZ · · Score: 4, Informative

      If it's anything like regular CD sales;

      the site takes .40,
      the labels take .30 and
      the labels take another 12 cents from the artist's share to recoup "production advances" and "independent promotion"

      The artist gets shit until they've sold the first few million CD's. Only then, they get to keep their 12c.

      --
      455fe10422ca29c4933f95052b792ab2
    2. Re:it should be 50/50 by Anonymous Coward · · Score: 0

      O.K. then. Do this:

      Download a song from Kazaa (or LimeWire or whatever).

      Send $0.50 by paypal to the guy at xxx.xxx.xx.xxx (or whatever the ip address is).

      Write a check for $0.50 to Mr. Johnny Rotten (or whoever) and send it to him by mail.

      Enjoy your music.

    3. Re:it should be 50/50 by geekee · · Score: 1

      Calling a record label a leech is like calling a venture capitalist a leech. If anything, the retailer seems to be the biggest leech, since he takes little to no risk, and gets a large share of the revenue, all for setting up a large web server.

      --
      Vote for Pedro
    4. Re:it should be 50/50 by Anonymous Coward · · Score: 0

      > I would rather give the artist 50% and the site
      > 50%.
      >
      Nonsense! How about *the artist* gives 20 percent to their own webmaster/hosting company and takes 80 percent!
      Articles like this will only exist, until the artists themselves realize, that in this day and age they don't need the leeches to distribute their music anymore. Why wait for getting some some dry bones thrown your way for your own work, while others not creating anything make the big bucks?!
      Of course, artists will perhaps have to get used to somewhat less of a salary (more in line with those of their buyers), just like techies had to face a new financial reality a couple years ago. But they can still make very decent money.
      Next in line for a cold reality check are actors and the movie industry (can't wait!).

    5. Re:it should be 50/50 by jedidiah · · Score: 1

      ...like calling a venture capitalist a leech.

      And your point is? VC's are EXACTLY the sort of people that should give you cause to count all of your fingers and toes after meeting with them. If you don't take this approach, a VC will screw you worse than an A&R man.

      --
      A Pirate and a Puritan look the same on a balance sheet.
  2. I've always thought... by bazabba · · Score: 5, Insightful

    that the artists should be attacking their own labels...not their fans.

    1. Re:I've always thought... by Anonymous Coward · · Score: 1, Insightful

      we do, but u guys barely hear about it because no label will put out music by an act that dusnt like being told what to do...

    2. Re:I've always thought... by ChazeFroy · · Score: 2, Interesting

      Fortunately, touring is the time that bands make their wads of cash. Bands earn their well-deserved buck, and the real fans get to see what the music is really about.

      Unfortunately, unless you are the Rolling Stones or Phish (or the like), bands don't break even on touring.

    3. Re:I've always thought... by larryleung · · Score: 1

      Well most are. But the labels own most of the traditional distribution channels so you often don't here of these artists.

    4. Re:I've always thought... by rf0 · · Score: 1

      Also surely taking into account tax etc the actual amount they are taking home is even lower. Going by these figures for a million selling single they get onyl $120,000 which while is nice isn't a *huge* amount

      Rus

    5. Re:I've always thought... by Anonymous Coward · · Score: 0

      Wait, so they do or don't make wads of cash touring?

    6. Re:I've always thought... by wavedeform · · Score: 2
      At the top of the food chain, tours can be lucrative. But for almost every working band, the money from touring, combined with a day job, still makes a pretty meager living.

      Bottom line: Don't become a musician for money.

    7. Re:I've always thought... by Anonymous Coward · · Score: 0

      But that's just for the song. There's the band-related memorabilia and the touring, etc. to make money on. So, $120,000 is pretty huge just for that part. I mean, hell that's a single song!

      I'm sure a lot of blood, sweat and tears went into that single. But seriously, every couple of years (or less) they should be able to produce a full album, most of which sell a good amount. 10 songs selling half a million makes you over half a million over a couple of years. Pretty good living from just selling the songs and not having any endorsements or ever putting on a concert.

    8. Re:I've always thought... by Jad+LaFields · · Score: 1

      Bottom line: Don't become a musician for money.

      I agree, but the sad part is when you can't be a musician for food, or rent.

      --
      [SIG] It's like putting a moose in the blender -- a recipe for disaster!
    9. Re:I've always thought... by Archfeld · · Score: 1

      Bands make decent money touring, labels lose money because of the need to actually give the band some of that money, in most cases an ACTUAL % of the GROSS ticket sales. The guys I know don't get rich, but without the tours they'd have nothing and they are under contract.

      BTW I have an Italian gentlement friend on his way to your location to 'discuss' your associating Phish and the Rolling Stones in the same paragraph. Phish has more talent in whatever guest 'star' is on stage with them at any time, than the Stones do period these days. The most talented person in the stones entourage HAS to be the make-up person, who somehow makes Mick and Keith NOT come out like a campy english version of Weekend at Bernies :)

      --
      errr....umm...*whooosh* *whoosh* Is this thing on ?
    10. Re:I've always thought... by poptones · · Score: 3, Insightful
      Uh... where are you people getting this?

      the artists don't make money on CD sales...
      the artists don't make money on touring...

      How then, do the fucking artists eat?

      I've known a LOT of performers in my day. Some are still in bands, some are long since retired. And even the (serious) ones who "never made it" mad(k)e money on touring.

    11. Re:I've always thought... by Anonymous Coward · · Score: 0

      No upper case, spells "you" "u", misspelled "doesn't"... Do you play drums?

    12. Re:I've always thought... by T40+Dude · · Score: 3, Funny

      Lars ? Is it you ?

    13. Re:I've always thought... by GnarlyNome · · Score: 2, Funny

      Espc. if you play Banjo

      --
      Diplomacy is the art of saying "Nice doggie" until you can find a rock. Will Rogers
    14. Re:I've always thought... by eht · · Score: 1

      i think you mised up the stones and phish in your closing paragraph there, i had hoped to go my whole life without ever hearing a phish tune, damn simpsons ruined it for me

    15. Re:I've always thought... by iomud · · Score: 1

      The stones actually dont make any money until about the halfway point in the tour. They do still make money though. The stones travel in luxury and put on a massive (expensive) stage show. They could ride by van and skip the theatrics and probably take in twice as much but they probably feel they've earned it.

    16. Re:I've always thought... by /dev/trash · · Score: 1

      My guess is Ticketmaster owns them on the concert tour route.

      Silly artists, read your contracts, before signing.

  3. Thats way less then the artists get from Kazaa. by Kenja · · Score: 5, Funny

    This is why I only use Kazaa to get my music. That way I know the artist is getting 100% of the 0.00$ I spend.

    --

    "Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
    1. Re:Thats way less then the artists get from Kazaa. by squidinkcalligraphy · · Score: 2, Funny

      It's a win-win situation: Artist gets 100%, Record company gets 100% (of your $0.00).

      --
      "I think it would be a good idea" Gandhi, on Western Civilisation
    2. Re:Thats way less then the artists get from Kazaa. by Ozymandias_KoK · · Score: 1

      Negative -- everybody wins! The artist gets their 100%, the record company gets 100%, and YOU GET TO KEEP YOUR 100% too!

      Uhh...I have to go to the patent office, back shortly.

    3. Re:Thats way less then the artists get from Kazaa. by blibbleblobble · · Score: 1

      "This is why I only use Kazaa to get my music. That way I know the artist is getting 100% of the 0.00$ I spend."

      Actually it means that Sharman Networks is selling processing-time on your computer.

    4. Re:Thats way less then the artists get from Kazaa. by jetmarc · · Score: 1

      Obviously your internet provider got 100% of what you spent.

  4. "measly"? by RLiegh · · Score: 5, Insightful

    They're getting just under half of what the labels are getting.

    IMHO, "measly" would if they got three cents and the labels got fifty seven cents.

    Of course, if they went independent, they'd get 60 [assuming the sites still charged 40 cents].

    1. Re:"measly"? by DavidinAla · · Score: 4, Insightful

      Considering the costs of promoting a new group, getting them recorded, producing the CDs and getting distribution, the group almost certainly wouldn't be selling ANY albums or getting ANY money if they weren't working with a record label -- because nobody would have heard of them and no CDs would exist. While labels might have too much power and take too large a cut of the revenue, the truth is that they DO fill several very important functions, which some people don't seem to understand.

    2. Re:"measly"? by Jad+LaFields · · Score: 1

      Very true. Hopefully once the music business turns more iTunes-like, some functions of the record company will become less important, but until then they will be necessary for most artists.

      --
      [SIG] It's like putting a moose in the blender -- a recipe for disaster!
    3. Re:"measly"? by leviramsey · · Score: 3, Insightful

      The promotion and financing functions of the record industry will probably always be necessary, especially the promotion part. How many songs are you going to sell through iTunes if no one's heard of you?

    4. Re:"measly"? by 0x20 · · Score: 1

      iTunes or a similar app someday will provide a promotional mechanism which equals or betters that of the current record industry. It's just a matter of time. "Word of mouth" is "word of mouth;" it doesn't matter whther it comes through the TV and magazines or through the computer display.

    5. Re:"measly"? by Anonymous Coward · · Score: 0
      One more time.....

      The ARTISTS shoulder those costs, which are decucted directly from their advances. They're the last in line to make any money in a system of the record compay's design.

    6. Re:"measly"? by Anonymous Coward · · Score: 0

      One more time.....

      The LABELS give money to the Artists to pay for those costs. Without the labels the Artists couldn't afford to produce their album.

    7. Re:"measly"? by RLiegh · · Score: 1
      Considering the costs of promoting a new group, getting them recorded, producing the CDs and getting distribution, the group almost certainly wouldn't be selling ANY albums or getting ANY money if they weren't working with a record label -- because nobody would have heard of them and no CDs would exist.


      You mean the way that nobody heard of Black Flag, The Dead Kennedys and Ani Difranco; and the way that no CDs exist for them?

      Also, I believe you missed the nuance here that we're talking downloads, and not cds.

      If you have an independent web site, the site would take care of promotion, and the band would take care of producing music [and how readily available is home studio equipment these days?]

      So, in an itunes-like download enviroment, the need for **AA is...what, exactly? Production and promotion certainly seem to be able to be handled perfectly fine without them...
    8. Re:"measly"? by dipipanone · · Score: 1

      One LAST time...

      Computer technology means that today everyone with a couple of grand can own their own studio and produce their own records that are virtually indistinguishable from that of the studios.

      Today, the limiting factor is creativity, not money.

    9. Re:"measly"? by JaredOfEuropa · · Score: 1

      It would be very interesting to see what the labels are actually spending on promotion. It's not cheap, we all know that.

      However recording and production should not be deducted from the labels' cut. These costs are coming out of the artists' share!

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    10. Re:"measly"? by circusnews · · Score: 2, Insightful
      The promotion and financing functions of the record industry will probably always be necessary


      Yes, but do they have to be as intertwined as they are?

      As I see it, if the record companies were forced to split the financing off from the rest of what they do (promotion, recording, etc) the artists and the public would end up with a much better deal.

      Think about it for a minute. The financial side would have much closer public scruteny as a financial company, and would fall under much tighter federal regulation. Record companies would then face the prospect of having to have its books looked at under more normal accounting. The record industry would no longer be able to claim the loss on the loosers (the financial company would), and would have to bill for the services it provides under normal accounting rules. Food for thought.

    11. Re:"measly"? by Nodatadj · · Score: 1

      yeah, cos setting up your own record label like Ani did is really cheap and all.

      And no, most people haven't heard of Black Flag, The Dead Kennedys or Ani Difranco.

    12. Re:"measly"? by DavidinAla · · Score: 1

      You're missing the point that this is up-front money. When a band is starting, those amounts are VERY vaunting for small bands. I knew the members of a small band that was considered an up-and-coming local band around here. They won some contests and were popular at various local hangouts. But they STILL couldn't come up with the $1,000 or so to record some halfway professional demos. Financing things when there is no cash flow is one of the labels' most important functions, if not THE most important ones.

      As for the cost of promotion, I suspect it would surprise all of us how much it costs. I work in marketing (in a totally unrelated industry), and it never fails to shock people how much it costs to do it right.

    13. Re:"measly"? by grumling · · Score: 1
      Today, the limiting factor is creativity, not money.

      No, it is still money. How do you get your record on Clear Channel? Get tickets to your show on Ticket Master? Get your record in stores (that no one goes to anyway)? Get people to listen to your album? Compete with the latest and greatest "manufactured" band from LA?

      Takes money, and lots of it to get it through the marketing noise.

      --
      "Well, good luck finding a judge that doesn't run a bestiality site."
    14. Re:"measly"? by archen · · Score: 1

      That's BS. We like to think that it costs a zillion dollars to promote an artist, but in reality the record industry dug themselves into this hole. Just look at how much it costs to get a song played on the radio. I mean God forbit a dj just picks up some music they like and starts playing it. Who knows what sort of anarchy would ensue if MTV (assuming they would play a video at all) would simply play a video that people just liked.

      Record companies spend ass loads of money promoting artists because it's all they know how to do. They want to push that one cookie cutter artist that has "the right sound" as far as their worth, because finding multiple artists with a lot of tallent takes way too much effort to scout. If they would just make the effort to scout some REAL tallent that might not be in their formula, and then just give it some airplay WITHOUT payola, we might have a system where the actuaal population buying the shit could decide what they want to buy , instead of being bombarded with these million dollar music propaganda campains that drown out smaller artists.

    15. Re:"measly"? by siphoncolder · · Score: 1
      people DO very well understand that music labels do some very important things (disc pressing, initial payment of studio time, advertising/promoting) to get artists out there.

      however, i'm morally opposed to supporting the labels because they do some very important things (lobbying to: destroy my computer, destroy my players, put me in jail for sharing/copying, lawyering people out of money) to get customers persecuted.

      --
      i'm amazed that i survived - an airbag saved my life.
    16. Re:"measly"? by lubricated · · Score: 1

      People would still listen to music even if all the labels stoped all the promotion. What scares the labels is that they wouldn't decide what people listened to anymore.

      --
      It has been statistically shown that helmets increase the risk of head injury.
    17. Re:"measly"? by DavidinAla · · Score: 1

      I'm sorry, but you are woefully ignorant about how actual marketing works and WHY it works as it does. By your logic, marketing and advertising aren't needed in ANY industry. Someone just produces a product and people magically know about it. Right? And all the people involved in producing records and keeping a band going just volunteer their time until that distant future that a band starts making money. Right? Your notions are so ignorant that a rudimentary understanding of business makes them obviously laughable.

      It's rare when I can dismiss someone's argument with such utter disdain, but you are just plain wrong. There is plenty to criticize labels for, but acting as though they don't perform functions that are necessary is just plain stupid.

    18. Re:"measly"? by DavidinAla · · Score: 1

      Actually, from the replies I've seen here, many people here do NOT understand that the labels do many important things that are necessary. Because they hate the RIAA's stand on pirating music, they decide that labels are unnecessary. If you'd like to help establish a new business model that can undergird the whole music industry, more power to you, but until there IS some new mode (or structure) in place, the labels are going to be with us in some form. That's just the practical business fact of the matter.

    19. Re:"measly"? by jedidiah · · Score: 1

      Good music should float to the surface like cream. DJ's should be picking up on what's new and interesting. What prevents this now is payola & megacorp radio. Wipe out clear channel, and vigorously prosecute payola and the promotion part should be trivial.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    20. Re:"measly"? by jedidiah · · Score: 1

      These are all ARTIFICAL constraints created by the cartel status quo. None of those have anything to do with the real cost of production or marketing.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    21. Re:"measly"? by dipipanone · · Score: 1

      How do you get your record on Clear Channel?...

      These are all marketing issues. If you believe in the power of marketing and want to sell your future earnings to fund some advertising exec's cocaine habit, feel free to go ahead and do so.

      Takes money, and lots of it to get it through the marketing noise.

      I suppose it depends on who you see as your market. If you believe your product is sufficiently bland and superficial to sell to the drones who buy their product from Clear Channel and advertising, then you might well think that investing in the mass marketing roulette wheel is worth doing.

      As someone who's actually worked in that end of the media that defined trends rather than followed them, I can tell you that whenever that sort of material landed on our desks, it went straight into the trash. Word of mouth recommendations are the only ones worth having, and they remain as free as they ever were.

      Of course, its hard to get those if you're crap, so you could always go the Britney Spears route and perform to gullible kids at shopping malls from a flatbed truck.

    22. Re:"measly"? by archen · · Score: 1

      Did I say marketing was unneeded? no. What I'm saying is that the marketing is out of control - and even the record labels are starting to flinch at how much it's costing them to get airplay on the radio. So by your taking we can't have music without marketing? And in all of human history we haven't had music, or any popular songs until the wonderful music undustry that has evolved has saved us from our ignoance? Whatever.

      I'm not talking about "buisness" and if my "rudamentary understainding" of such. I'm talking about music, and I could give a fuck about the buisness. It's not like 95% of music artists are getting rich (reguardless of talent) because of the music industry. Simply put the music cartel has made the industry a sick parody of what it should be.

      What we've taken out of the picture is the people, which is exactly what the music industry wants because it's what they can predict, control and push. And they can (try to) do this by overwhealming marketing.

      I'm glad you understand how marketing works and why it works so well. Please enjoy all the shit music because of it.

    23. Re:"measly"? by DavidinAla · · Score: 1

      If you're not talking about business, you're in the wrong conversation. This is about the music business. I'm sure there's a thread somewhere for people who just want to rant uselessly about what they wish reality were.

    24. Re:"measly"? by drinkypoo · · Score: 1
      That's a big part of the point of online distribution. A record store just has posters up or whatever, clearchannel stations advertise the songs that people pay to put up, but a fair music outlet (like iTunes supposedly is) will give equal exposure to all, whereas word of mouth will spread the news of who is or is not good. I think it's imperative to have user ratings, though, so that you can get an unbiased view of what is and is not good. (Fanboys notwithstanding.)

      A website developed by Media X, Inc. (A really poorly managed company, publicly traded company controlled by one Rainer Poertner, a completely cluless bastard) for Creative Labs called MuVo (a name later used for their portable music devices) had features that would allow you to see who reviewed an item, how they voted on it, and how they voted on other music, so you could see if their tastes were compatible with yours.

      Unfortunately Creative thought they were getting to use Media X's license for the all-music guide (allmusic.com) content, which the site depended on. This is because they are stupid. So when they didn't get it, for some reason they decided to flush the half million dollars spent on the site design, and repurpose the quarter million dollars worth of Compaq servers (which, BTW, were pieces of crap and not worth half that - two of them had bad backplanes when they arrived, and they arrived over a month late) instead of paying for a license and putting up the site.

      Anyway, that site design would have been easily extensible to support features like message bases, any object could be rated so messages in the bases could be rated and then sorted by rating, et cetera. Reviewers could be rated also. It was pretty slick, it could have become the future of music distribution as I describe it, and they flushed it. Sigh.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    25. Re:"measly"? by Anonymous Coward · · Score: 0

      most people haven't heard of Black Flag, The Dead Kennedys or Ani Difranco.

      ...and yet, selling to their core audience, they have long term success. They may not be rich, but they make a living at what they do, and do so without radio play or promotion.

    26. Re:"measly"? by leviramsey · · Score: 1
      That's a big part of the point of online distribution. A record store just has posters up or whatever, clearchannel stations advertise the songs that people pay to put up, but a fair music outlet (like iTunes supposedly is) will give equal exposure to all, whereas word of mouth will spread the news of who is or is not good. I think it's imperative to have user ratings, though, so that you can get an unbiased view of what is and is not good. (Fanboys notwithstanding.)

      DISCLAIMER: I have never used iTunes, as I lack a Macintosh...

      User ratings are a possibility, but they can be easily gamed by promoters (look at Amazon...). Essentially it would be Slashdot karma whoring, only you actually derived financial benefit from having a high karma.

      Some sort of Amazon-esque collaborative filtering system might work, but it would be strongly biased towards what is already popular, which gets you even more into the chicken and egg situation.

      I highly doubt that exposure will be equal; the opportunity for exposure will be equal (which is a step forward). Essentially artists that get more exposure outside of iTunes (and maybe even pay for greater exposure within iTunes) will have a huge headstart.

    27. Re:"measly"? by Shadow99_1 · · Score: 2, Insightful

      Well I'm not sure if anyone will ever read this (since I'm coming in a few hours after it was first posted), but I used to be a big fan of MP3.com... You know before they were sued & had to sell their soul to the big 5 music labels...

      I heard so much new music on their it was incredible... They gave exposure to all the bands/artists that posted work on their site and made it easy to find by spliting them into categories... New artists were lsited on each page of the site (like the main page listed all the msot recent artists in all categories, but the blues main page lists all the recent blues artists signing up). Beyond that they had reviewers who had there own section of the site & would spotlight artists, which often included contests voted on by the site goers. I picked up more than a few new bands by coming back each week for the 'female artist of the week' page.

      This is a constructive promotional tool that did wonders for alot of artists that would not have been exposed otherwise... It was a model that worked wonders. Sure not every artist made it, but tons of them did... Heck several made steady income from CD sales only doing this, that's pretty unheard of in the music industry...

      All in all I'm just saying that no the promotional end doesn't ahve to be handled in the way RIAA members currently do it, It can come from grass roots efforts to promote artists... In fact that makes far more sense then letting the 'evil empires' do it while screwing the artists out of every cent they can...

      --
      we are all invisible unless we choose otherwise
    28. Re:"measly"? by Nodatadj · · Score: 1

      and so, the lesson is,
      to be big you need a record label?

    29. Re:"measly"? by rzbx · · Score: 1

      Always? Never say never and never say always. I highly doubt they will always be needed. Marketing shifts all the time. The internet has caused a shift where you find ad's on web pages all over and spam in almost every email account. Whether record labels exist in the future depends highly on if they themselves shift to the new marketing medium. Even then, it all comes down to who provides the content that dominates the marketing. The more popular a site becomes, the higher it's marketing potential. Google has done very well for example by providing a great search engine and integrating ad's that aren't obtrusive enough to deter. The RIAA/MPAA can't shift fast enough to this new medium, so any threats are taken legally. It is true most of these threats are illegal according to the copyright laws, yet it is hard to break into the business that has its promotion and content tightly woven together. To advertise yourself to an audience interested in music you'll find that the just about the only successful source is the current industry. The RIAA isn't losing to piracy as much as it is losing to their inability to shift fast enough. The entire industry's inability to shift fast enough is hurting it. The worst thing about this all, it hurts the artists the most. As you already know, the artist makes a very small percentage of sales. Technology creates a sort of trickle-up effect where advancements improve the profit potential of those that already have a tight grasp on it. This is all due to legal problems and their constant attack on all threats that pop-up. Anyway, I'm ranting far too long. Next time you make your comment, put at least something insightful in it. Your comment is what they call a "questionable claim". It says "...statement that is so broad it cannot withstand scrutiny". So here I am scrutinizing it.

      --
      Question everything.
    30. Re:"measly"? by InnovATIONS · · Score: 1

      In addition the article talks about the 8 percent mechanical license given to the publisher. That mostly goes to the writer. If they band writes their own music, hardly unheard of, then that share comes to them too.

    31. Re:"measly"? by intermodal · · Score: 1

      And no, most people haven't heard of Black Flag, The Dead Kennedys or Ani Difranco.

      yes they have. and funny, everyone still seems to consider them underground and unknown.

      --
      In SOVIET RUSSIA... erm...NSA AMERICA, the Internet logs onto YOU!
    32. Re:"measly"? by Nodatadj · · Score: 1

      No, I don't know anyone who would know them. Even very few of the people who grew up in the grunge era when the Dead Kennedgys were making a comeback hardly know them

  5. Interesting math... by cyb0rg · · Score: 2, Insightful

    40+30+12 ?= $1

    1. Re:Interesting math... by Anonymous Coward · · Score: 0

      RTFA. Other people get the rest. Foo.

    2. Re:Interesting math... by Kenja · · Score: 1

      Interesting reading ability.
      40+30+12+10+8=100.
      RTFA.

      --

      "Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
    3. Re:Interesting math... by bazabba · · Score: 2, Informative

      Key figures: Read the article for the other figures. It shows how its divided up 5 ways.

    4. Re:Interesting math... by Feztaa · · Score: 4, Funny

      CowboyNeal gets the other 18 cents.

    5. Re:Interesting math... by deadsaijinx* · · Score: 3, Funny

      well, using crazy RIAA math, you must subtract the negative dollars they never earned due to piracy. so, the equation is 40+30+12--18=$1

      --
      YOU SUCK BALLS!
    6. Re:Interesting math... by iate138 · · Score: 1, Informative

      if you go to the article and check out that little pie graph, you'll see there's 8 cents for the publisher. .40+.30+.12+.8 does equal $1.00.

    7. Re:Interesting math... by iate138 · · Score: 2, Funny

      ha. hahahahaha...not only am i too late, i did the math wrong too... *slams head into desk*

    8. Re:Interesting math... by Anonymous Coward · · Score: 0

      Read the article. Why do people post comments without reading it!?

    9. Re:Interesting math... by Anonymous Coward · · Score: 0

      lol, wow .... it's almost embarassing, isn't it?

    10. Re:Interesting math... by danila · · Score: 1

      Heh. You don't even need to know how to add four numbers correctly to be moderated "Informative" on Slashdot.

      56 + 32 = 98 (Hint! Hint!)

      --
      Future Wiki -- If you don't think about the future, you cannot have one.
    11. Re:Interesting math... by Anonymous Coward · · Score: 0

      Why do people post comments without reading it!?...

      Duh. If you post really quickly you can get Karma from the Moderators who haven't read the article either.

    12. Re:Interesting math... by Anonymous Coward · · Score: 0

      again, i say wow, reminds me of a post were i got modded down for laughing at someone who had no clue what he was talking about, then the guy who responded to me forgot to divide the time by the proccessors, and got modded up. just show math, and the you will be modded up

    13. Re:Interesting math... by MushMouth · · Score: 1

      The publisher IS the songwriter, many times it IS the artist.

  6. Wow! A whole 12% by Anonymous Coward · · Score: 0

    Which will then be divided between singers, songwriters, musicians, etc.

  7. how is it by alfredo · · Score: 2, Interesting

    divvied up with the writer?

    --
    photosMy Photostream
    1. Re:how is it by black+mariah · · Score: 1

      If there is a songwriter, they're usually paid in advance, under the table, so nobody knows that their 'artists' are talentless shit.

      --
      'Standards' in computing only impress those who are impressed by things like 'standards'.
    2. Re:how is it by ktakki · · Score: 4, Informative
      divvied up with the writer?

      Interesting question. I was wondering that myself.

      Not many people outside the music industry are aware that retail sales are the only revenue stream. For one thing, there's something called mechanical royalties, a fee of 7.5 cents per song per unit that's paid to the songwriter (not the performer, unless they are the same person or persons). BTW, the term mechanical originally referred to player piano rolls, and goes back over a century.

      If a band releases an album of all "cover" songs, all the mechanical royalties go to the songwriters.

      There's also performance royalties, money paid to the songwriter from radio and television airplay (as well as jukebox placements and clubs that employ cover bands). The recent controversy surrounding streaming webcasts involved these. Performance royalties are administered by ASCAP, BMI, and SECAM, organizations that collect fees from radio and television stations (and clubs and jukebox vendors) and disburse these monies to songwriters according to a formula based on the number of plays multiplied by the potential number of listeners.

      Other revenue streams include synchronization rights (the use of musical works in a movie soundtrack) and transcription royalties (use of musical works in advertisements).

      For all but the most popular bands and songwriters, these royalty payments don't amount to much, but even a "one hit wonder" might see a jackpot if their song hits the Top 40 or ends up in a movie or a television commercial.

      The canonical/apocryphal royalty success story is that of Paul Anka, who wrote the theme for Johnny Carson's Tonight Show, and earned over $700 each week from performance royalties simply by having that tune played on every NBC affiliate in the country five nights each week.

      k.
      --
      "In spite of everything, I still believe that people are really good at heart." - Anne Frank
    3. Re:how is it by JoshNorton · · Score: 1
      For all but the most popular bands and songwriters, these royalty payments don't amount to much, but even a "one hit wonder" might see a jackpot if their song hits the Top 40 or ends up in a movie or a television commercial.

      The canonical/apocryphal royalty success story is that of Paul Anka, who wrote the theme for Johnny Carson's Tonight Show, and earned over $700 each week from performance royalties simply by having that tune played on every NBC affiliate in the country five nights each week.

      The other example is Nick Lowe. "(What's So Funny 'Bout) Peace, Love and Understanding" has been earning him some money for years because of the Elvis Costello cover. Then it's covered by Curtis Steigers for The Bodyguard soundtrack. Sales of that specific disc have actually made Nick a millionaire.

      --
      "Stupid! Stupid stupid stupid stupid! I touched the hot wire right there - I'm an idiot!"
    4. Re:how is it by Anonymous Coward · · Score: 0

      The canonical/apocryphal royalty success story is that of Paul Anka, who wrote the theme for Johnny Carson's Tonight Show, and earned over $700 each week from performance royalties simply by having that tune played on every NBC affiliate in the country five nights each week.

      So Anka wrote what was for decades one of the most widely broadcast tunes in the world, and he got a lousy $35K a year for it? Terrific.

  8. Artists should skip the label part! by seanthenerd · · Score: 3, Insightful

    Why don't artists skip the labels? Go straight to the Apple Music Store or mp3.com or whatever? With that extra thirty cents a song, they don't need support from Universal or Sony or whoever.

    Of course, the hard part is getting started...

    1. Re:Artists should skip the label part! by prockcore · · Score: 1

      Why don't artists skip the labels? Go straight to the Apple Music Store or mp3.com or whatever?

      Great idea, now go convince Apple to accept music from unsigned artists.

    2. Re:Artists should skip the label part! by afidel · · Score: 2, Insightful

      Apple works with Indie labels, so start your own label, if you can meet whatever terms Apple has set to participate then you should be good. Hell some top artists could start a co-op label that could operate sort of like a limited partnership where the overhead of things like accountants, lawyers etc could be pooled and all of the profits could be funneled to those who produced them.

      --
      There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
    3. Re:Artists should skip the label part! by Anonymous Coward · · Score: 0

      yeah, why dont all artists do the same too? all people who wanna make independent movies, or write books and do anything...except i have to do all my promotions, pay for all my expenses, set up my own interviews with magazines to promote my own works, pay my printers, etc etc etc, etc

      I been trying to publish a book by myself for 2 years now and guess what, i cant even find enough people to buy it cover myprinting expenses. but all in all, u are probably some pimpy 15 years old who by his post shwos howmuhc you really know how the realworld operates. sheeesh.

    4. Re:Artists should skip the label part! by Qzukk · · Score: 1

      Because 20-30 years ago, back before there was an online to sell music on, artists signed contracts to give the labels the right to distribute their music. Then recently, the online market appeared, and a couple of musicians wanted to sell online, but they were smacked down. A lawsuit over contract law proceeded (did the artists sign away rights/distribution channels that didn't exist at the time of the contract?) and then people quit caring about 20-30 year old songs anyway.

      --
      If I have been able to see further than others, it is because I bought a pair of binoculars.
    5. Re:Artists should skip the label part! by danila · · Score: 1

      Sometimes it's hard to do even when you have the money in your pocket... But seriously, try online publishing or just giving it away online for free if you don't need money. :)

      --
      Future Wiki -- If you don't think about the future, you cannot have one.
    6. Re:Artists should skip the label part! by black+mariah · · Score: 1

      You can't skip the labels. Unless, of course, you want to pay for your own advertising, merchandising, recording costs, new gear and keep the van running all on the $150 (or less) you make from each gig. Labels provide financial support.

      --
      'Standards' in computing only impress those who are impressed by things like 'standards'.
    7. Re:Artists should skip the label part! by PerryMason · · Score: 4, Insightful

      Why don't artists skip the labels?

      The answer is that without the publicity and promotion that the major labels provide, you simply can't get the exposure necessary to really 'make it big'.

      Sure you could go direct to Apple and many people do go direct to MP3.com but you just won't get the downloads without the exposure. I am involved with a few bands in Australia, some signed to big labels and some going it alone and without fail, the servicing that the signed bands get is the difference between the success of the bands. The major factor being that if you aren't signed, you simply don't get airplay on the radio. Even on Australia's 'indie' radio station TripleJ, the DJs themselves get the option to play 3 tracks of their choice in a 3 hour shift. The rest is dictated to them by managament, which in turn is dictated by how much the labels are willing to pay the station. Payola is well and truly still alive.

      So despite the fact that its eminently possible to record your own album at home in small recording studio and produce a product that the 'unwashed masses' couldn't tell from a studio recorded album, you just won't make it big without label backing.

      --
      "I'm tired of all this 'Aren't humanity great' bullshit. We're a virus with shoes" - Bill Hicks
    8. Re:Artists should skip the label part! by Dylan+Zimmerman · · Score: 3, Informative

      Well, Apple works with indiependant labels, but labels can only join by invitation. That's why CD Baby's offer is so cool. They said that they were invited to sell their music on the iTMS and that they would sign independant bands and sell their music as a pipeline into the iTMS. Pretty cool of them.

    9. Re:Artists should skip the label part! by Dylan+Zimmerman · · Score: 1

      Oops. I misspelled "indiependant". Stupid me.

    10. Re:Artists should skip the label part! by Anonymous Coward · · Score: 0

      GodDAMN I hope you have a good editor!!

    11. Re:Artists should skip the label part! by jjh37997 · · Score: 2, Insightful

      "The rest is dictated to them by managament, which in turn is dictated by how much the labels are willing to pay the station. Payola is well and truly still alive."

      So.... its not that the labels promote their clients its that they prevent radio stations from playing who they want via massive and illegal bribes. Tell me again why the record labels are a good thing?

    12. Re:Artists should skip the label part! by Phanatic1a · · Score: 1

      The answer is that without the publicity and promotion that the major labels provide, you simply can't get the exposure necessary to really 'make it big'.


      The vast and overwhelming majority of artists don't "make it big." Ever. According to the RIAA, one reason CDs are so expensive is because the small percentage of artists who do make it big have to make enough money for the recording industry to pay for all the promotion of the much larger percentage of artists will never sell enough product to recoup the RIAA's investment.

      Of course, that's what the RIAA says. A less Bizarro way of putting that would be "Labels spend too much developing and promoting new acts because they overestimate how much the public is willing to pay for CDs."

    13. Re:Artists should skip the label part! by Eythian · · Score: 1

      Even better, they should make good music, and release it for free, like Machinae Supremacy.

      [END PIMPING MUSIC I LIKE:]

    14. Re:Artists should skip the label part! by Anonymous Coward · · Score: 0

      ooh...subtle. good humor/humour.

    15. Re:Artists should skip the label part! by cubicledrone · · Score: 1

      The answer is that without the publicity and promotion that the major labels provide, you simply can't get the exposure necessary to really 'make it big'.

      Bullshit. There is such a thing as overexposure. Look at the Hulk. Most people were violently sick of it by day four, and it was still three weeks from release.

      --
      Business isn't willing to pay for products, innovation and careers, so we get brands, mortgage commercials and layoffs.
    16. Re:Artists should skip the label part! by linuxbaby · · Score: 4, Informative
      That's a side project we're doing at CD Baby: Helping hook artists directly into iTunes and other download services. No record contract. No ownership of their rights. Just acting as a digital distributor.

      Apple iTunes is paying the label 65 cents per download, (as reported many places). Of that we can pass almost all of it to the artist, since we're not a record label, and have no up-front expenses.

      You can see my notes on Apple's meeting with independent record labels here (pt 1) and here (pt 2).

    17. Re:Artists should skip the label part! by Martin+Blank · · Score: 2, Informative

      Like most things that seem bad, they have their upsides. In this particular case, the labels can afford to spend money on advertising and support for a group, making them known throughout a wider area. There are a few stations around that provide better coverage to unsigned or independent artists (Los Angeles's KLOS does this with their weekly Local Licks program), but by and large, major stations don't supply a lot of coverage to unknowns without a label or a trusted agent behind them.

      It's possible to get noticed and get publicity without labels, yes, but it's not easy, and if it flops can easily bankrupt a group (and their families).

      --
      You can never go home again... but I guess you can shop there.
    18. Re:Artists should skip the label part! by Anonymous Coward · · Score: 0

      That's what sucks!
      They don't trust the people. Today people communicate easily, and a great band would not have any problem selling a lot by just letting people tell other people, "hey, this Foo Bar band is great".
      I know a company that entirely relies on people talking to other people in that way. They sell more than you can imagine. Quality, not a single dollar on ads, that works!

    19. Re:Artists should skip the label part! by GnarlyNome · · Score: 1

      Hell you are not gonna see any Run C&W there either

      --
      Diplomacy is the art of saying "Nice doggie" until you can find a rock. Will Rogers
    20. Re:Artists should skip the label part! by geekee · · Score: 1

      "its not that the labels promote their clients its that they prevent radio stations from playing who they want via massive and illegal bribes"

      Why do you use the term bribe? Is there a law that says a program manager can't play songs based on what people are willing to pay the station? That sounds like free market at its finest.

      --
      Vote for Pedro
    21. Re:Artists should skip the label part! by mighty+bombjack · · Score: 2, Insightful

      Even on Australia's 'indie' radio station TripleJ, the DJs themselves get the option to play 3 tracks of their choice in a 3 hour shift. The rest is dictated to them by managament, which in turn is dictated by how much the labels are willing to pay the station. Payola is well and truly still alive.

      That is a rather bold (and i'm guessing unsubstantiated) claim.

      Firstly you will find that music is choosen by the triple j music director, not management. More on the music selection process can be found here.

      If inappropriate behaviour was being exhibited in this area it would be against abc editorial policies (triple j is part of this government funded body).

      Evidence please?

    22. Re:Artists should skip the label part! by doktor-hladnjak · · Score: 1

      Yes, actually there is a law (at least in the US) concerning this. Basically, radio stations can only take pay for play when they disclose that they are in fact being paid. They also have to say who's paying them. If I remember correctly, in the early days of radio a big scandal errupted when the public found out that payola was going on. Politicians passed disclosure laws as a result.

    23. Re:Artists should skip the label part! by RickHunter · · Score: 1

      What publicity? Members of my family watch Much Music constantly, and I get dragged into record stores whenever I visit a mall with them. I have never seen promotional materials for anything that's not in the RIAA-selected top 10 bands of the month. Never. Flip on the radio, what do you hear? The top ten bands.

      So if the record labels are skimming off a large percentage of the artist's cut for promotion, someone's getting swindled.

    24. Re:Artists should skip the label part! by sbszine · · Score: 1

      More on the music selection process can be found here.

      The selection process you linked to only applies to the Oz Music Show (which is supposed to play new Australian music), not to regular programming (which plays the usual guff).

      But you're right about the music director.

      --

      Vino, gyno, and techno -Bruce Sterling

    25. Re:Artists should skip the label part! by mighty+bombjack · · Score: 1

      Getting on the triple j playlist.

      Each Wednesday morning the triplej djs and music staff listen to the new releases that come in, and decide which ones get put on the playlist, and how high the rotation should be. If there's a song which we reckon is really good it'll get played across the week more often.

      source

      I think that paragraph pertains to the entire playlist selection process - no mention of record company money or managerial pressure there though!

    26. Re:Artists should skip the label part! by sbszine · · Score: 1

      Look at the URL of your source:
      http://www.abc.net.au/triplej/ozmusic/getplayed/de fault.htm.

      It's just the Oz music show. If that policy were honestly and generally applied across JJJ I would actually listen to it. Instead 2SER is my station of choice (good reception here from directly underneath the transmitter, and drum n bass on a Saturday night).

      If you're interested, there's a good book about payola here, or you could just watch John Safran reruns : )

      --

      Vino, gyno, and techno -Bruce Sterling

    27. Re:Artists should skip the label part! by mighty+bombjack · · Score: 1

      already read it :) interesting book though.

      isn't fbi the new saviour of the sydney radio scene?

      Oh and although we will agree to disagree on the music policy - I am right (whether the policy has been honestly and generally applied in the past may be another matter)

    28. Re:Artists should skip the label part! by sbszine · · Score: 1

      isn't fbi the new saviour of the sydney radio scene?

      It sounds too similar to JJJ in my opinion -- does Sydney really need another station playing Radiohead etc? There's so much interesting music out there, and it disturbs me that many of the 'community' stations (e.g. the evil Wild FM) play stuff you can hear a lot of elsewhere. It would be nice if community radio played local music, electronic music etc. This is why I like 2SER... they even had System Corrupt on in drive time last year.

      Oh and although we will agree to disagree on the music policy - I am right

      Well, I can't argue with that logic. Anyhoo, aren't you a Kiwi?

      --

      Vino, gyno, and techno -Bruce Sterling

  9. That seems fair... by IronTek · · Score: 4, Funny

    Afterall, the labels need all of that money to keeping buying the bullets they constantly (and consistently) shoot themselves in the foot with.

    It adds up!

    1. Re:That seems fair... by Anonymous Coward · · Score: 0

      "We don't need gun control, we need bullet control. I think all bullets should cost $5,000. That way, if somebody gets shot you'd say 'damn, he musta done something! S***, they put $50,000 worth of bullets in his ass!'"

      -Chris Rock

    2. Re:That seems fair... by Unominous+Coward · · Score: 0

      a bullet in the store is worth more than two in the foot.

      --
      "Smoking helps you lose weight - one lung at a time" -- A. E. Neumann
    3. Re:That seems fair... by Super_Frosty · · Score: 1

      When I first read that, I thought you were talking about the artists and drive-by shootings.

      --
      No comment at this time
    4. Re:That seems fair... by Darth_Burrito · · Score: 1

      Seriously, maybe it is a reasonable deal. If not, why wouldn't more bands form their own labels? Well sure that stuff costs a lot of money and there is probably a lot of risk involved, but that's part of what those big companies are there for. If I'm not mistaken, they suck up a lot of the risk and do most of the nitty gritty stuff of promo-ing the band and distributing materials.

      If you want to be a national/international hit at 20, there are going to be trade offs. If an artist knowingly signs a contract stating they get a certain cut, I'm not going to complain about it or use it as a justification for downloading unlicensed music, just because, I, in my extremely uninformed state, happen to think the artist's cut is too small. It's no different than all those people out there who think bandwidth is free just because they don't see the costs associated with it.

  10. Interestingly enough by Anonymous Coward · · Score: 1, Interesting

    That doesn't add up to a dollar. But the musician and his recording company are still getting more than anyone else. It's just the recording company is screwing the musician. ... On the other hand, when independants start being sold through the Apple Store, it looks like those musicians will be getting their full 42 cents.

  11. Isn't that a step up? by Niahak · · Score: 5, Interesting

    the artists get a measly 12 cents for each download. From all the articles there have been about the artists under the RIAA, 12% is a hell of a lot better than the cut they get normally. Sure, it's measly, but it's probably a step up. Here's to hoping it'll increase.

    1. Re:Isn't that a step up? by topham · · Score: 1

      It is from that 12% they deduct the Advance they were given to produce it in the first place.

      So, while they slowly pay off the advance the record company applies it's 30+% to it's profit margin...

    2. Re:Isn't that a step up? by Planesdragon · · Score: 1

      It is from that 12% they deduct the Advance they were given to produce it in the first place.

      Maybe you're not familiar with the concept of "advance."

      An advance is an interest-free loan from the producer to the artist against the earnings of the album.

    3. Re:Isn't that a step up? by Hawthorne01 · · Score: 4, Informative

      the artists get a measly 12 cents for each download.

      From all the articles there have been about the artists under the RIAA, 12% is a hell of a lot better than the cut they get normally. Sure, it's measly, but it's probably a step up. Here's to hoping it'll increase.

      According to one of the best articles written on the subject, it's a big step up.
      --
      "Only two things are infinite, the universe and human stupidity, and I'm not sure about the former."
    4. Re:Isn't that a step up? by black+mariah · · Score: 1

      Yah. So even after getting fucked out of 78% of the profit from their song, they get nailed in the ass for probably a hundred grand more (Minimum).

      --
      'Standards' in computing only impress those who are impressed by things like 'standards'.
    5. Re:Isn't that a step up? by Moofie · · Score: 1

      When the band spends the money, where do you think they spend it? They don't exactly get to go to the Album Store and make their music.

      They get their advance, and give it back to the record company to pay the inflated production costs.

      If the band were actually a free agent, where they got a loan from a record company who thought they had promise, and then they got to go make the music, it might be a lot more equitable. That way, the bands could work hard on their music and record it in a low-cost (but high quality!) studio, instead of paying absurd rents at the shiny record company booths.

      Or, if they think it's going to make a better product, they rent from the studio. If we're going to pretend the advance is a loan, then the band should be able to spend it the way they want to.

      --
      Why yes, I AM a rocket scientist!
    6. Re:Isn't that a step up? by leviramsey · · Score: 1

      Bands aren't required to take advances, you know; indeed there's generally not a huge difference between what an established band gets in a contract and what a startup band gets. The established band, sales being equal, walks away with more because they generally don't take any upfront money because they've accumulated enough to make it themselves.

    7. Re:Isn't that a step up? by Moofie · · Score: 1

      It would be interesting to see if the record company would sign a band that had independent financing.

      I bet you a quarter they wouldn't.

      --
      Why yes, I AM a rocket scientist!
    8. Re:Isn't that a step up? by geekee · · Score: 1

      "If the band were actually a free agent, where they got a loan from a record company who thought they had promise, and then they got to go make the music, it might be a lot more equitable."

      What's stoopping a band from walking into a bank and getting a loan? Nothing. They are free agents. Bands are a dime a dozen. Record comapnies sort through all the crap and take risks on stuff they think has potential. They're the risk takers in the music industry. Nothings stopping a band from starting its own label, if they don't like the terms the record companies are offering.

      --
      Vote for Pedro
    9. Re:Isn't that a step up? by grumling · · Score: 1
      What's stoopping a band from walking into a bank and getting a loan?


      Loan officer: Welcome to megabank, how may I help you?

      Muscian: I'd like a loan, so I can record an album and make millions.

      Loan Officer: Well, that's great. We classify that as a "high risk" loan. The intrest rate is going to be about 23.99%. We'd make it higher but the government won't let us. What do you have for collateral?

      Muscian: Well, a stratocaster and a really bitchin' bong that looks like a naked woman!

      L.O.: Well, we'll just go ahead and calculate in a few late penalties right now....

      The point is, recording is more like a tech start up than a hardware store. And, the record companies are like VC folks, not banks. The problem is that the've been around too long and are being run by people who aren't muscians.

      --
      "Well, good luck finding a judge that doesn't run a bestiality site."
    10. Re:Isn't that a step up? by Darth_Burrito · · Score: 1

      The artist agreed to that contract, it's their problem, not our execuse.

    11. Re:Isn't that a step up? by Midnight+Thunder · · Score: 1

      According to one of the best articles written on the subject, it's a big step up.

      Thanks for that link, it was one of the most insightful articles I have read on the subject in a long time. This is the sort of article that I would have like to see as /. story.

      --
      Jumpstart the tartan drive.
    12. Re:Isn't that a step up? by topham · · Score: 1

      No, I understand the term advance.

      But when you realize that the artist pays back the advance, they pay back a large number of fees for production, studio, etc, you soon realize that the recording industry getting 30% of the total, with the artist getting 12% with which to payoff the debt is almost fraudulent.

      If you attempted to get a loan outside of the copyright industry based on that type of payment it would probably be classified as loansharking.

    13. Re:Isn't that a step up? by Hawthorne01 · · Score: 1

      Where do you think I got the link from in the first place? ;-)

      --
      "Only two things are infinite, the universe and human stupidity, and I'm not sure about the former."
    14. Re:Isn't that a step up? by pod · · Score: 1

      Yes, this loan is used to pay to produce and promote the album. Problem is this money is spent on companies and products of the labels choosing, at very inflated prices. Essentially, the labels give this loan to themselves and their friends. Most of the 'losses' on unsuccessfull bands are just paper losses. The money just changes hands a couple of times.

      --
      "Hot lesbian witches! It's fucking genius!"
    15. Re:Isn't that a step up? by Anonymous Coward · · Score: 0
      the record companies are like VC folks, not banks. The problem is that the've been around too long and are being run by people who aren't muscians.

      Why do they have to be run by musicians? It's a business, and businessmen run it.

    16. Re:Isn't that a step up? by Anonymous Coward · · Score: 0

      Sorry, wrong button.

      To continue, it's a business, a money business. It's run by money people. Like banks. Like VC firms. All these are run by smart people who have lots of money and they want to take high risks to make even more, and help others do the same. OK, that part makes it sound like a scam, and in some ways it can be argued that it is. Nevertheless, it's just a money business, specialized in developing successful bands instead of tech companies.

    17. Re:Isn't that a step up? by pod · · Score: 1
      If you attempted to get a loan outside of the copyright industry based on that type of payment it would probably be classified as loansharking.

      Why? It's an interest-free loan. You pay it off as you make money. In fact, if you don't make any money, you don't even HAVE TO pay it off. What's illegal about that? Do the artists have a blindfold over their eyes when they sign their contract? A gun to their heads? What? How it is loan sharking?

      --
      "Hot lesbian witches! It's fucking genius!"
    18. Re:Isn't that a step up? by Reziac · · Score: 1
      From that article:


      Realistically, why do most people download music? To hear new music, or records that have been deleted and are no longer available for purchase. Not to avoid paying $5 at the local used CD store, or taping it off the radio, but to hear music they can't find anywhere else. Face it - most people can't afford to spend $15.99 to experiment. That's why listening booths (which labels fought against, too) are such a success.


      And here's another thought: say I've downloaded a few songs, and get interested enough to track down the artist's website. At that point, I'd be more than happy to pay the artist 10-25 cents per file (depending on bitrate) for MP3s of ALL their stuff, especially what's out of press and not otherwise available, and likely come back and buy a CD as a backup, if the price was right (my breakpoint seems to be around $8-$10 per album). Why shouldn't the artists themselves get into the paid downloads act? Surely there's a business model waiting for someone to develop, since dealing with micropayments would likely need to be centralized even if the downloads themselves are not.

      --
      ~REZ~ #43301. Who'd fake being me anyway?
  12. The $0.99 thing... by Thinkit3 · · Score: 1

    Ok, it's a tangent, but the whole marketing prices I think is a symbol of distrust. Large corporations (who are more likely to do the ".99" nonsense) are willing to insult their customers in the belief that they may get more sales. It's fitting that the artists get so little--clearly they don't respect them either. It's a sickness, and it's disgusting.

    --
    -Libertarian secular transhumanist
    1. Re:The $0.99 thing... by zapfie · · Score: 1

      Um.. they do the $0.99 because it works. Works on me, even, though I know in my head it's really just $1. I don't see how it's a sickness or disgusting.

      --
      slashdot!=valid HTML
    2. Re:The $0.99 thing... by Thinkit3 · · Score: 1

      No big deal online, but it does annoy at, e.g. fast food places with 99 cent menus. You have to deal with getting a penny back. But that's not the point. The sickness is that these marketers don't care that they are making the world a more annoying and less elegant place in the hope of maybe getting more purchases (I know I'm much less likely to buy stuff with prices like that).

      --
      -Libertarian secular transhumanist
    3. Re:The $0.99 thing... by deadsaijinx* · · Score: 1

      no, because of tax you have to cary more than a dollar for those damned 99 cent menus... tricky little bastards

      --
      YOU SUCK BALLS!
    4. Re:The $0.99 thing... by zapfie · · Score: 1

      Hm.. I will agree marketing is a shady world at best, in my opinion.. but it also reflects poorly upon the population in general, because they put up with it. If people were like you in general, less likely to buy things with prices like that, you can be guaranteed that pricing would change pretty quickly to something consumers were happy with.

      --
      slashdot!=valid HTML
    5. Re:The $0.99 thing... by Thinkit3 · · Score: 1

      Ah yeah, but I think drive-thru isn't taxed usually. And I'm from Oregon, sales tax free. Actually the best places just include the sales tax in the price and give you a rounded figure. I think movie places do this.

      --
      -Libertarian secular transhumanist
    6. Re:The $0.99 thing... by Anonymous Coward · · Score: 0

      Here's how it works (in California at least). If the food is cooked and prepared (such as at a restaurant), it's taxed. If it isn't (such as at a grocery store), then there is no tax. Certain exceptions exist, but that's the general rule.

    7. Re:The $0.99 thing... by Anonymous Coward · · Score: 0

      In Ohio I believe, if you eat it in the restaurant (or McDonalds) it is taxed, if you carry it out or drive-thru it is not taxed. Funny I guess, but you're paying a sales tax on the service of using their dining room.

    8. Re:The $0.99 thing... by Martin+Blank · · Score: 1

      I've gotten fast food in California, Texas, Kansas, Oklahoma, Florida, Maryland, and Arizona, and to my recollection, I have paid tax on all of them. Sales tax on prepared foods is pretty common.

      --
      You can never go home again... but I guess you can shop there.
  13. Measly 12%? by IthnkImParanoid · · Score: 5, Interesting

    Is 12% really that measly? I agree it's low (unless the artist is a britney spears/in sync clone, in which case it's too high), but what percent does an artist get from CD's? What percent is standard for authors? My mom is an author, and gets about 25 cents from a 5.99 paperback... Seems like online music is giving artists a bigger cut compared to more traditional methods.

    --
    It's nothing but crumpled porno and Ayn Rand.
    1. Re:Measly 12%? by mechaZardoz · · Score: 1

      from the article: "Twelve percent is average, but successful bands often hammer out better contracts.' It's the 8% after other costs that are often deducted which the other describes as 'measly.'

    2. Re:Measly 12%? by zakezuke · · Score: 1

      The funny thing about lower distrobution costs, it does give an artist a bigger cut. 12% is a step in the right direction, but it's sad the fact that artists don't nessicarly have the following to justify not signing on with a label *yet*.

      The sad thing is, i'd easily pay a quarter to a dollar for a good electronic copy of a novel.

      --
      There is no sanctuary. There is no sanctuary. SHUT UP! There is no shut up. There is no shut up.
    3. Re:Measly 12%? by daveinthesky · · Score: 2, Informative

      I took a music publishing class which detailed all this stuff in gory detail. Average artists' cut on a new CD is ~$0.07. This cut gets even lower (read: as the limit approaches zero) if the album gets a lowered rating (decided by the label and is sold at a "discount" by the label (those 'bargain' bins you'll often see).

    4. Re:Measly 12%? by nobodyman · · Score: 5, Insightful
      You raise a good point. Here's a quote from Mike Viscelglia (he played bass for Suzanne Vega, I believe). His website has some good insight into the industry from sort of an "everyday joe" perspective.
      When an artist negotiates a contract (preferably through a music attorney) he or she must come to terms as to what share of the price of the CD goes to the artist and what share goes to the company. This is referred to as "points" or a percentage of sales. An industry standard point allocation to the artist is usually 10 to 12. This means that the artist will get 10 to 12 percent of the sale of the CD. But 10 to 12 percent of what number? Is it the retail price? The wholesale price? The manufacturer's price? For this there is no standard and different companies will try to enforce different numbers.

      So, it would seem that the online price is in-line with cd sales. To be honest, though, I find myself torn as to whether this is fair or not.

      In the extreme example, take a band like N' Sync. These bands are obviously manufactured by the record label. They came into existense as a result of casting calls. Their music was written for them. They were provided with singing coaches, dancing lessons, etc. The record company promoted them, booked their concert dates, paid for their recording time, food, lodging, and transportation. The record company also handled virtually every angle of CD manufacturing and distribution. And don't forget the marketing machine that ensured that there would be enough radio play and media exposure such that enough pre-teens would want the CD in the first place.

      So, in this instance most people would agree that the record company did at least 82% of the work (probably more). So is it unfair that some of these artists make 12%? In my estimation, the majority of major label artists fall into this category -- they weren't "discovered" so much as they were developed, honed, and trained by a music executive who knew what people would buy.

      Am I over-generalizing? Yes. Do I think the music industry has become a cartel that will squash independent music and technological innovation? Most definitely. But let's be real. I like REM, but my guess is that Michael Stipe has as much business acumen as a piece of toast, and that without a major lable he'd still be plugging away at some bar in Athens, GA.

      My point? I'm not sure I even have a point other than to say that 12% does sound unfair, buy maybe not THAT unfair depending on a host of other factors. I'm really more concerned about the chilling effect that the industry has on technology and the consumers' access to truly unique and different music.
    5. Re:Measly 12%? by tuba_dude · · Score: 2, Interesting

      I think you hit it perfectly. A good majority of the top of the heap are probably manufactured, and that's probably why radio and MTV are so homogonized. Every once in a while you get a standout with his/her own talent like Norah Jones, who managed to make it big and sign on with a smaller label, which may be more willing to pay the artist more. (Norah Jones is with Blue Note, a small-ish, Jazz-oriented label, lots of classic jazz too) While I'm not sure how artists are paid by smaller companies, it's probably higher than with a company that spends more on their top or (hopefully) up-and-coming artists. Can anyone enlighten me?

      --
      "The government of the United States is not, in any sense, founded on the Christian religion."
    6. Re:Measly 12%? by IthnkImParanoid · · Score: 1
      I'm really more concerned about the chilling effect that the industry has on technology
      Excellent, that's definitely the much more important issue, especially considering how much music is manufactured mainly through the effort of the RIAA. It's also probably the only reason this story got on slashdot in the first place. There are certainly very talented music artists getting raped by the recording industry, but it seems things are much bleaker for, say, your average writer of romance or sci-fi novels (both genres being, sorry Star Trek fans, approximately as saturated and homogenized as MTV). Or, to bring this home to slashdotters, what percentage of DiabloII sales went to programmers?

      I'm not prepared to call the 12% "fair" compensation because, well, last time I inadvertently checked I wasn't made of asbestos. It just seems the RIAA's grab for control of technology has automatically made everything they do suddenly more evil than, say, the average (insert media here) publisher. Is the RIAA evil? I think so. But not for this reason. If we want to all gather around and yell about them being evil, let's at least focus our efforts, and talk about buying congress(wo)men, selling broken media, and generally using their monopolistic status to stifle an industry.
      --
      It's nothing but crumpled porno and Ayn Rand.
    7. Re:Measly 12%? by geekee · · Score: 4, Interesting

      This is NOT insightful. REM, for instance, started out on a smaller label (IRS, I believe) and then moved to Warner brothers after they got a couple of hit songs. This is standard practice. Why do you think indie labels are giving artists better deals? An unknown artist is a huge risk. An artist with a hit under his belt looking for more exposure from a major label is a lower risk, so the major label gives this artist a better deal. Knowing this, it is clear that major labels do NOT sqash independent music, they thrive off it, looking for the next big star.

      --
      Vote for Pedro
    8. Re:Measly 12%? by rigorist · · Score: 1
      Am I over-generalizing? Yes. Do I think the music industry has become a cartel that will squash independent music and technological innovation? Most definitely. But let's be real. I like REM, but my guess is that Michael Stipe has as much business acumen as a piece of toast, and that without a major lable he'd still be plugging away at some bar in Athens, GA.
      REM actually was pretty damn smart. They hired their own lawyer before signing deals. He gets to worry about their deals so they can just play.
    9. Re:Measly 12%? by fermion · · Score: 1

      This, of couse, is why an article like this is quite useless. There is no basis for comparison. The numbers are just presented in a vacuum. For instance, most retail will more up thier cost 100% to cover cost of doing bussinees. The fact that the markup is only 66% might be generous. Likewise, the 12% to artists clearly an average, as such a number is negotiated between the label and each artist.

      --
      "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
    10. Re:Measly 12%? by Anonymous Coward · · Score: 0

      Nora Jones is a great singer, but I don't think she's that "original" as a songwriter. Six of the songs on the album, and that includes the better ones, were written by Jessie Harris.

    11. Re:Measly 12%? by nobodyman · · Score: 1

      Fair enough... and I don't disagree with anything that you've stated. I don't doubt that the major labels benefit from the indie labels... but this isn't necessarily good for the indie labels. Indie label discovers band, band gets relatively popular, big label poaches band from small label . Big label wins, band wins, but I don't see the smaller label as a winner.

      Anyway, "squashed" was probably not the best word to use, but "permanently subjugated" doesn't have the same ring to it ;-)

      I stick by the cartel theory, though.

    12. Re:Measly 12%? by stanmann · · Score: 1

      Oddly enough, that makes more sense with a book, since recurring(pressing/printing) costs on a PB are obviously higher than creating a CD/case/cover notes. Just my observation. If I wanted to self publish a cd, my recurring costs would be $2 or so per 1k lot If I wanted to self publish a book, recurring costs would be about $3 for the same. the CD could sell for $10 the book would sell for $6 or $7. Obviously for 10k or 100k lots the economies of scale take over, but the proportion doesn't particularly change.

      --
      Food not Bombs is a nice platitude but it breaks down when you notice that the Bombees are usually well fed
  14. hmm by Datasage · · Score: 1

    What happens when artists self-produce thier own albums? the record labels get 0 cents. Besides P2P, i think this is another thing they dont want to get really big.

    --
    In America we are imprisoned by our fear of them.
    1. Re:hmm by black+mariah · · Score: 1

      Artists have been doing it for years and the record companies don't care. You know why the companies don't care about self-produced stuff? BECAUSE NOBODY BUYS IT. There is no distribution, no promotion, no radio or MTV. There is no audience at all, whatsoever. The audience for the average self-produced CD is maybe a few hundred people, TOPS. You do get some exceptions (Ani DiFranco, for one) but they are very very few and far between.

      --
      'Standards' in computing only impress those who are impressed by things like 'standards'.
    2. Re:hmm by gabba_gabba_hey · · Score: 1

      What happens when artists self-produce thier own albums?

      I'm much more curious as to what happens when artists self-produce other people's albums.

      don't mind me i'm just grumpy and hungover today...

    3. Re:hmm by Anonymous Coward · · Score: 0

      AC says, you're right. The Epoxies are tight! Thank's for introducing me.

    4. Re:hmm by Martin+Blank · · Score: 1

      MTV plays music? When did this start?

      --
      You can never go home again... but I guess you can shop there.
    5. Re:hmm by bsharitt · · Score: 1

      I think that was in the 80s. It was a historical look at music.

    6. Re:hmm by gabba_gabba_hey · · Score: 1

      Thanks for checking it out :)

  15. packaging costs!?!?! by the-build-chicken · · Score: 2, Funny

    BMG, Universal, and Warner have announced plans to do away with such deductions for digital downloads.

    awwwww, that's so thoughtful of them...kinda like a yacht salesman saying to you..."and just for you, I won't charge you for the tired"....wha tha?

    1. Re:packaging costs!?!?! by the-build-chicken · · Score: 1

      doh...typo...."tired" = "tyres"

    2. Re:packaging costs!?!?! by Anonymous Coward · · Score: 0

      Ok, I can understand the typo with the d and the s, but where the fuck did the y come from in tires? Are you European or do you just think it makes you sound more intelligent like people that spell color as colour try to be?

    3. Re:packaging costs!?!?! by the-build-chicken · · Score: 1

      the former

  16. So where's the credit card companies chunk? by Peter+Cooper · · Score: 3, Insightful

    Microtransactions have failed up to now because of the extreme costs involved in processing them. The credit card companies like to take a small flat rate fee and then a percentage on top. On amounts of a few dollars and up, the retailer can swallow this.. but on a buck? Regular deals with the credit card companies could end up with them getting about 40 cents out of the dollar.

    Clearly Apple and chums have made some sort of special deal with the credit card companies, but there's no doubt there's a percentage coming out for the credit card companies.. and their chart just doesn't address it.

    You could argue that it's the 'middlemen' section, but this is listed as going to subsidaries such as AOL and Amazon (in the case of certain retailers).. and I seriously doubt as if they'd fork over their whole share to VISA!

    Someone with some real knowledge of merchant accounts in this capacity.. please fill us in :-)

    1. Re:So where's the credit card companies chunk? by Rylfaeth · · Score: 1

      Merchant accounts are usually set up so that these fees are deducted from the account that the funds are deposited into... so when I process a transaction and it posts to my account, I'm shown both a deposit and a withdrawl, the withdrawl being the processor fee. That said, I think the fees are tied into the 40 cents the site gets.
      -Rylfaeth

    2. Re:So where's the credit card companies chunk? by Anonymous Coward · · Score: 1, Informative

      If you read up a little more on the music store, Apple does it's credit card charges in bulk. They don't do one for each song bought, but rather they bulk together the last 1000 or however many songs were bought and charge those. That was they can mitigate the fee. It's not that big of a deal if it's one charge per thousand or so songs.

      In their chart, the cut for apple includes credit card usage -- because that's apple's responsibility to do. Seriously, your question is like asking "who pays for the recording? Recording studios get expensive!!" It's not like the credit card company is a partner in the music store. The chart divides up between the partners and those partners have certain responsibilities like paying the processing fees or the recording fees.

    3. Re:So where's the credit card companies chunk? by euphline · · Score: 2, Informative
      Clearly Apple and chums have made some sort of special deal with the credit card companies, but there's no doubt there's a percentage coming out for the credit card companies.. and their chart just doesn't address it.


      Generally, credit card fees come out of the retailer's piece of the pie. How do they afford it? We're only talking about 2-4%. Yes, 2-4%. What about the transaction fees? While many internet merchants do pay per transaction fees for credit cards, this is not a "requirement" of the deal. The CC companies have and do setup some accounts on a strictly percentage basis. I'm sure it's particularly easy to negotiate this when you're Apple and not joescomputershack.com... but it's not particularly a "special deal'.

      Have doubt? Try googling for "merchant account 'no per transaction'".

      -jbn

    4. Re:So where's the credit card companies chunk? by Anonymous Coward · · Score: 0

      I think it is called "cost of doing business"
      It's the same as going to a grocery store and buying a $0.50 candy bar with your visa.
      The real money comes from most of their customers buying more things.

      Yeah, they probably take a loss on the people that only buy one song. But at least the one song got you in the store.

    5. Re:So where's the credit card companies chunk? by Anonymous Coward · · Score: 0

      So I can buy 999 songs and not get charged?
      Sweeeet!!

    6. Re:So where's the credit card companies chunk? by donutz · · Score: 1

      some stores will refuse to let you buy a $.50 candy bar with a credit card.

    7. Re:So where's the credit card companies chunk? by Anonymous Coward · · Score: 0
      A lot of gas stations and liquor stores will set a $10 or $20 limit on ATM or CC purchases. Others will simply make you pay the transaction fee. But not Safeway or any other big grocery chain.

      Here's a trick: Let's say you need to get some cash, but the ATM at Safeway isn't for your bank. Don't feel like paying the $1.50 transaction fee? Go to a cashier and ask for "cash back" without actually buying anything. They will do it, and the store will pay the transaction fee.

    8. Re:So where's the credit card companies chunk? by Dylan+Zimmerman · · Score: 1

      I've seen on other pages that Apple actually makes $.30 per song sold. Using these numbers for distribution, that implies that $.10 per song goes to the credit card companies as the transaction fee.

    9. Re:So where's the credit card companies chunk? by Orne · · Score: 1
      Why can't there be Monthly billing? You aren't billed per phone call; you make your calls and pay a lump sum at the end of the month.

      The way its presented to us now is that there is a set of Artists, a set of Labels, and a set of Customers. Each Artist has a set of Songs. Customers have credit/debit with Financial institutions.

      Total billable parties involved is A + L + C

      Each customer listens to his/her songs, and is billed one aggregate amount at the end of the month. Total credit card / financial transactions: C

      And you're right, when you do bulk transactions, you can argue your way to a lower rate. Total companies involved: F at rate R

      Based on the count of C per F, you can pay transaction costs: C * R(F)

      For each Artist and Label, you just issue a check to each person, with a line item report of what percents relate to each song / artist. Total checks: A + L

      If the customer's payment method fails (overdrawn accounts, credit limts) then you forward the amount on to a collection agency (which comes out of your portion of the cost)

      Now, if I were a musical Artist, I might use that purchase data to help determine why some songs were browsed vs purchased (more desireable than others), and my next album might reflect more of that style... it is just a business after all.

    10. Re:So where's the credit card companies chunk? by Anonymous Coward · · Score: 0

      There are two distinct phases to each credit card purchase. The first phase, the "authorization", tells the credit card company to reduce the purchaser's credit limit by a certain amount, earmarked for the mercly have the purchaser's money yet, but the purchasers can't go and spend it elsewhere, either.hant. At this stage, the merchant doesn't actual

      The second phase is the "capture" phase, which actually moves the money from the purchaser's account to the merchant's account.

    11. Re:So where's the credit card companies chunk? by Anonymous Coward · · Score: 0

      If the Visa or MasterCard logos are displayed, they are required to honor your purchase even if it is $0.01

      Also, just a side note, you are not required to show ID when asked. I got Walmart in a heap of trouble over this one. They don't ask for ID anymore. At least in my area.

      If a merchant refuses a sale because it is too low, get them in trouble, call VISA or MasterCard customer service.

    12. Re:So where's the credit card companies chunk? by Jah-Wren+Ryel · · Score: 4, Informative

      If you find yourself in such a situation, get 1-800-MC-ASSIST on the phone while you are arguing with the store (that's for mastercard, visa has a similar number, I just don't remember it off-hand). The store's merchant contract has a number of consumer-friendly requirements of the merchant. In this case, they are not allowed to set minimum purchase requirements to use a credit card. You should be able to buy a 1 cent gumball with your CC if you wanted to.

      Another useful fact is that the merchant contract prevents the store from requiring seperate ID beyond the card itself. However, they are allowed to ask for ID, they just aren't allowed to require ID unless they have reason to believe that the transaction is fraudulent (note, blanket policy of requiring ID from all CC users is not sufficient, that is the equivalent of saying, "if you shop at our store, we think you are trying to commit fraud" and thus is not acceptable under their merchant contract).

      Some people claim that these requirements aren't fair and that in the case of minimum purchase requirements, the vendor loses money on the transaction and that in the case of not being able to require ID the vendor has to make good on fraudulent charges either directly through chargebacks or indirectly through increased fees for being a more risky business. Well, tough noogies, the store signed the contract with these terms, they have the choice of either not accepting credit cards or accepting them with the terms offered. The reason these terms are in all the contracts is that the CC companies wish to be as easy to use as cash - cash does not require an ID, and there is no minimum purchase to use cash. either.

      So, stand up for your rights. Most people pay very dearly for them with the exorbitant interest rates that the CC companies charge, at least you should be able to get the benefit of the few actual contractual terms that are in your favor.

      --
      When information is power, privacy is freedom.
    13. Re:So where's the credit card companies chunk? by justMichael · · Score: 1

      I'd give you an Informative mod, but my points just ran out.

      I realize that most people are not aware of these things, but having just signed another Merchant Agreement, I want to reach across the bar and smack the next bartender that tells me there is a minimum on credit cards...

    14. Re:So where's the credit card companies chunk? by Anonymous Coward · · Score: 1, Interesting

      It woud be good to take advantage of it now, the recently settled anti-trust case should allow retailers to put a stop to this practice. They might not do it quickly, look for them to stop processing those Visa Check Cards as Visa transactions, and make you put in a pin number. Oddly enough even though almost the exact same transaction occurs, it costs the retailer 2-3 times as much in fees if you sign vs enter a pin number. Personally I enjoy sticking walmart with the fees on my soda pop from American Express, and then paying the bill of each month. I'll bet both of them want to seem my account closed.

    15. Re:So where's the credit card companies chunk? by DarkEdgeX · · Score: 2, Informative

      Just to provide a URL so people can have something to point to (since I wasn't aware it was against credit cards rules to set minimum purchase prices)--

      http://www.corporate.visa.com/footer/faqs.shtml#7

      Make sure to let it scroll down automatically, or click on the FAQ entry for minimum purchase to use a Visa card.

      --
      All I know about Bush is I had a good job when Clinton was president.
    16. Re:So where's the credit card companies chunk? by DarkEdgeX · · Score: 2, Informative

      And here's one for Master Card--

      http://global.mastercard.com/hk/faq.html#c_cust_se rv

      Same as the Visa, be sure to let it load, or just do a text search for "minimum".

      --
      All I know about Bush is I had a good job when Clinton was president.
    17. Re:So where's the credit card companies chunk? by chrysrobyn · · Score: 1
      Another useful fact is that the merchant contract prevents the store from requiring seperate ID beyond the card itself. However, they are allowed to ask for ID, they just aren't allowed to require ID unless they have reason to believe that the transaction is fraudulent (note, blanket policy of requiring ID from all CC users is not sufficient, that is the equivalent of saying, "if you shop at our store, we think you are trying to commit fraud" and thus is not acceptable under their merchant contract).

      This is not the case for American Express. I just called. They protect me against fraud for 100% of the money (looked at my agreement), and the merchant website says they protect merchants against fraudulant activity for up to 48 hours after the fact.

      When I called AmEx a little earlier today, I was read the riot act about why I would want to be accused a thief. With identiy theft so high these days, they'd be fools not to ask me. Of course, I'd be furious when I got the bill.

      Thing is, I'm not furious when I get a charge I disgree with. I've charged back over $500 worth of money at this point, and it's no big deal. I just call 'em up, tell them I want more information on a charge because I don't think it's legit, it gets taken off, and that's the last I hear. I've done that with 4 credit cards over the past 10 years (total of $500 over those 4). Once Cheker Auto Parts took two tries to sell me an alternator, and both of the attempts went through-- first one gave a confusing message. Second time, a movie theatre computer charged me for seeing like $150 worth of movies in one day from a kiosk I'd seen misbehave before. After that, 3 and 4 were not memorable, I just remember vaguely how much money happened each time. An identity thief, however, will have a fake ID on them to be able to "prove" they're me. How does handing over my driver's license with my real address and birthdate on it protect me in any way? I've seen merchants xerox my ID, write down information, enter it in a computer, and even disappear into the back room. I don't hand it over any more.

      I've seen people forget to pick up their credit cards after conducting transactions. Heck, I've served customers (when I did retail) who left them on the counter with the recipt when I returned them (and run after them in the parking lot as soon as I realized, caught all but one who came back later that day). I carry multiple credit cards, partially in case I do that because I don't want to end up screwed later in the day when I conduct the next transaction. I do not carry redundant driver's licenses, so if I later decided to buy beer or had a police officer ask for my identification, I would be screwed simply because a vendor asked for my ID and I may have been absent minded. I have more respect for myself than that, and I HAVE taken my business elsewhere because of it. My less geeky wife has started doing the same thing.

      American Express policy dictates that merchants can ask for an ID and refuse a transaction when I refuse. In Texas, I have the right to refuse to fork over my ID. The merchant has the right to refuse to accept money from me.

    18. Re:So where's the credit card companies chunk? by Reziac · · Score: 1

      Credit card fees for companies that handle serious money and have a large number of transactions, and use electronic verification, can be as low as 1.25%.

      --
      ~REZ~ #43301. Who'd fake being me anyway?
  17. Suprised? No. by Anonymous Coward · · Score: 3, Insightful

    This is why the record companies churn out the music they do. All they need is an ``artist'' willing to sing some and dance a little to bring in money. They recording industry money machine encompasses the studios, engineers, musicians, distribution, etc, and the money flow chart has no money going out of that process. They take in new money and recycle what they already have.

    That's why I don't understand the tone of some people here. They seem to be waiting for the record industry to propose an acceptable solution to the filesharing fiasco before welcoming them back. The record industry, as a whole, exists to take money from you and me. If they have to destroy the computer industry to do it, they will. Instead of trying to work with the record industry, the nerds should be preparing lines of retreat. Versus the money we're facing, I don't believe we can win. Instead, we need to be working now on software tools and hardware tools that can be used without inserted DRM, etc. The hardware is especially important.

  18. Same as album sales! by sould · · Score: 4, Informative

    According to this guy, artists only get 10%-12% of the cost of the CD.

    And thats after paying for promotion. Depressing stuff.

    1. Re:Same as album sales! by black+mariah · · Score: 2, Informative

      It's usually less than that. Think MAYBE a dollar a CD. You have to remember, artists have to pay back their advance and all recording costs. Record labels will fuck bands out of anything and everything they can get away with, the greedy cunts. "I have no talent, no ambition, and wear a shitty suit. I deserver 80% of what you earn." Fuckers.

      --
      'Standards' in computing only impress those who are impressed by things like 'standards'.
    2. Re:Same as album sales! by carlos_avdas · · Score: 1

      According to this guy, it's even worse than that.

    3. Re:Same as album sales! by DarkBlackFox · · Score: 1

      I believe some artists recieve a flat amount specified by the label, usually a few million, regardless of CD sales, then the label pockets whatever the CD does sell. More often than not though, through promotions and the like a CD will sell enough to break even with the payoff and promotional spending, and usually does turn in a very good profit for the label.

      Naturally though, if an artist is payed 2.5 million for an album, and the label makes 30 million in sales, the artist can't do a thing because they are under contract. If artist raises a fuss about the contract, byebye contract and byebye career.

      That's probably why you don't hear much fuss from artists about the percentage of money they make. If they complain, they are out of a career.

    4. Re:Same as album sales! by Eric+Savage · · Score: 1

      Yeah it really sucks that there are people doing what they love for a living making a measly 50-60k per year. I mean, come on, how will they eat? How will they occupy themselves for the dozens of weeks per year they have off?

      --

      This is not the greatest sig in the world, this is just a tribute.
  19. Always get burned! by UcensorMe · · Score: 2, Insightful

    When you make a deal with the devil, you will always get burned. Most artist are stupid about the deals they make and then bitch about gettin screwed. Look how these fools give away thier publishing rights.

    1. Re:Always get burned! by Anonymous Coward · · Score: 0

      It's not always that easy. Even with a good lawyer, you WILL get it in the ass. You either run away from the majors still an anal virgin or you bend over and take it.

  20. who's the dumbass? by DohDamit · · Score: 2, Informative

    It's not 0/0, stupid asshat. It's 0/100. Stupid trolls...the next evolution.

    1. Re:who's the dumbass? by Anonymous Coward · · Score: 0
      percentage = (part / total) * 100
      part = $0
      total = $0
      percentage = undefined
      Get it?
  21. I'd be pissed by 00Monkey · · Score: 3, Funny

    I'm a rapper and if I made it big, 12 cents wouldn't be enough...that's for damn sure.

    1. Re:I'd be pissed by mccoma · · Score: 1

      Might want to be your own label then, sell your own stuff, build an audience, and sign a deal more favorable to you (Motley Crue and MC Hammer went this route). Or hope you never have to sign at all.

    2. Re:I'd be pissed by deadsaijinx* · · Score: 1

      well, first off, there is your problem, you're a rapper. second off, if you made it big, and and got 12 to the dollar, then you would have plenty. do the math

      --
      YOU SUCK BALLS!
    3. Re:I'd be pissed by Anonymous Coward · · Score: 0

      I'm a rapper and if I made it big, 12 cents wouldn't be enough...that's for damn sure.

      Yep. Demand at least 50 cent.

    4. Re:I'd be pissed by Graff · · Score: 4, Insightful
      I'm a rapper and if I made it big, 12 cents wouldn't be enough

      Oh really?

      Well, let's say that you album only goes gold. That's 1 million albums sold, if you really made it big you'd most likely sell more. 1 million albums at $0.12 per song at let's say 10 songs an album equals $1.2 million in your pocket. Sure you have to pay tax, yadda yadda yadda but so does everyone. Do that once every 2 years or so and you'll make $600,000 a year. This is not counting other sales such as concerts, commercials, product endorsements, book deals, celebrity freebies, and all the other perks of being a star.

      So is 12 cents sounding a little better now?
    5. Re:I'd be pissed by fartmaster · · Score: 1

      That's right, you would be 38 cents short of making it big.

    6. Re:I'd be pissed by Anonymous Coward · · Score: 0

      omg, i spit out my coffee when i read that. if i had mod points they'd be yours.

    7. Re:I'd be pissed by jlechem · · Score: 1

      The great thing about the apple service is you only have to sell onee song now not the entire album. You could become wealthy of one single song. This 12 cent deal doesn't so bad to me after all!

      --
      Hold up, wait a minute, let me put some pimpin in it
    8. Re:I'd be pissed by heli0 · · Score: 2, Insightful

      Courtney Love does the math ...The record is a big hit and sells a million copies.

      So, this band releases two singles and makes two videos. The two videos cost a million dollars to make and 50 percent of the video production costs are recouped out of the band's royalties.

      The band gets $200,000 in tour support, which is 100 percent recoupable.

      The record company spends $300,000 on independent radio promotion. You have to pay independent promotion to get your song on the radio; independent promotion is a system where the record companies use middlemen so they can pretend not to know that radio stations -- the unified broadcast system -- are getting paid to play their records.

      All of those independent promotion costs are charged to the band. ...the band may as well be working at a 7-Eleven.

      Worst of all, after all this, the band owns none of its work ... they can pay the mortgage forever but they'll never own the house. Like I said: Sharecropping. Our media says, "Boo hoo, poor pop stars, they had a nice ride. Fuck them for speaking up"; but I say this dialogue is imperative. And cynical media people, who are more fascinated with celebrity than most celebrities, need to reacquaint themselves with their value systems.

      When you look at the legal line on a CD, it says copyright 1976 Atlantic Records or copyright 1996 RCA Records. When you look at a book, though, it'll say something like copyright 1999 Susan Faludi, or David Foster Wallace. Authors own their books and license them to publishers. When the contract runs out, writers gets their books back. But record companies own our copyrights forever.


      --
      Whenever the offence inspires less horror than the punishment, the rigour of penal law is obliged to give way...
    9. Re:I'd be pissed by Anonymous Coward · · Score: 1, Interesting

      Man, a lot of you geeks dont know a damn thing about the music biz. I have friends in a major band (I built their boxes), and after having their own accountants do the math on their 'great new deal', gave back a multi million doller advance from their label. They were going to make nothing at all off the deal if they went less then double platinum, and be stuck with the label for several more albums... this required a bunch of lawyers and yet more money, just to give the cash back....

      If you don't mind paying pimps thats your biz, but don't pretend they aren't exploting the bands.

      Ibn

    10. Re:I'd be pissed by groundpig · · Score: 5, Funny

      I'm a rapper and if I made it big, 12 cents wouldn't be enough...that's for damn sure.

      If you're a rapper and you're reading slashdot at 11:30PM on a Saturday, chances are you don't have to worry about making it big.

    11. Re:I'd be pissed by happyhangone · · Score: 4, Interesting

      IF the album goes gold, and they got to pay for the promotion and music videos... and those videos doesn't come cheap...

      Courtney Love wrote about it (ok... is a b&$@#! but that is not the issue here...)

      Courtney Love does the math

      The controversial singer takes on record label profits, Napster and "sucka VCs."

      By Courtney Love

      June 14, 2000 | Today I want to talk about piracy and music. What is piracy? Piracy is the act of stealing an artist's work without any intention of paying for it. I'm not talking about Napster-type software.

      I'm talking about major label recording contracts.

      I want to start with a story about rock bands and record companies, and do some recording-contract math:

      This story is about a bidding-war band that gets a huge deal with a 20 percent royalty rate and a million-dollar advance. (No bidding-war band ever got a 20 percent royalty, but whatever.) This is my "funny" math based on some reality and I just want to qualify it by saying I'm positive it's better math than what Edgar Bronfman Jr. [the president and CEO of Seagram, which owns Polygram] would provide.

      What happens to that million dollars?

      They spend half a million to record their album. That leaves the band with $500,000. They pay $100,000 to their manager for 20 percent commission. They pay $25,000 each to their lawyer and business manager.

      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.

      That's $45,000 to live on for a year until the record gets released.

      The record is a big hit and sells a million copies. (How a bidding-war band sells a million copies of its debut record is another rant entirely, but it's based on any basic civics-class knowledge that any of us have about cartels. Put simply, the antitrust laws in this country are basically a joke, protecting us just enough to not have to re-name our park service the Phillip Morris National Park Service.)

      So, this band releases two singles and makes two videos. The two videos cost a million dollars to make and 50 percent of the video production costs are recouped out of the band's royalties.

      The band gets $200,000 in tour support, which is 100 percent recoupable.

      The record company spends $300,000 on independent radio promotion. You have to pay independent promotion to get your song on the radio; independent promotion is a system where the record companies use middlemen so they can pretend not to know that radio stations -- the unified broadcast system -- are getting paid to play their records.

      All of those independent promotion costs are charged to the band.

      Since the original million-dollar advance is also recoupable, the band owes $2 million to the record company.

      If all of the million records are sold at full price with no discounts or record clubs, the band earns $2 million in royalties, since their 20 percent royalty works out to $2 a record.

      Two million dollars in royalties minus $2 million in recoupable expenses equals ... zero!

      How much does the record company make?

      They grossed $11 million.

      It costs $500,000 to manufacture the CDs and they advanced the band $1 million. Plus there were $1 million in video costs, $300,000 in radio promotion and $200,000 in tour support.

      The company also paid $750,000 in music publishing royalties.

      They spent $2.2 million on marketing. That's mostly retail advertising, but marketing also pays for those huge posters of Marilyn Manson in Times Square and the street scouts who drive around in vans handing out black Korn T-shirts and backwards baseball caps. Not to mention trips to Scores and cash for tips for all and sundry.

      Add it up and the record company has spent about $4.4 million.

      So their profit is $6.6 million; the band may as well be working at a 7-Eleven.

      Of course, they had fun. Hearing yourself on the ra

    12. Re:I'd be pissed by Anonymous Coward · · Score: 0

      First off Gold is 100K copies. Platinum is 1 million. Secondly, how do you not know that the real money, for the artist, is in the touring and not the record sales.

    13. Re:I'd be pissed by Graff · · Score: 3, Insightful
      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.

      That's $45,000 to live on for a year until the record gets released.

      Let's put this in perspective. $350,000 divided by 4 is $87,500. Now, I don't know about you but that is a lot of money to make in a year. There are people out there who earn $20,000 a year and live just fine on it. Maybe to Courtney Love that's chump change because she won't be able to support her coke habit but for the rest of us we could live pretty good off of $87,500 pre-tax.

      So, this band releases two singles and makes two videos. The two videos cost a million dollars to make and 50 percent of the video production costs are recouped out of the band's royalties.

      I'm sure that music videos can and do cost that much to make, but let's look at this a different way. Music videos are what, 5 minutes each? So we are talking about spending one million dollars on 10 minutes of video. There are independent film makers out there that make pretty damn good two-hour movies for well under a million. How about you hire someone young, hungry, and promising who doesn't cost you an arm and a leg to produce your movie rather than hiring Steven Spielberg to do it? Sure sure, you gotta spend money to make it and the video is an advertisement for the artist but either cut the cost or stop crying about how expensive it is.

      Another thing I noticed in analyzing this piece written by Ms. Love. Her numbers don't add up. Take a look:
      The band gets 2 million (20% of $11 million in sales) and then gets charged:
      $2,000,000 - royalties
      - $ 500,000 - 50% of 1 million for videos
      - $ 200,000 - for the tour, which is really an investment for
      the artist since tours MAKE money for artists
      - $ 300,000 - for radio promotion, again an investment
      that drives up their record sales
      ------------
      $1,000,000 - leaving them basically with their original
      advance of $1,000,000

      The record company makes 11 million and has to pay out the following
      $11,000,000 - her numbers for record company gross
      - $ 500,000 - manufacture CDs
      - $ 1,000,000 - band's advance
      - $ 1,000,000 - video costs
      (wait, didn't the band pay 1/2 of this?)
      - $ 300,000 - radio promotion
      (again, didn't the band pay for this?)
      - $ 200,000 - tour support
      (band paid, right? or maybe Ms. Love is just
      incoherent at this point)
      - $ 750,000 - music publishing royalties
      (to who? the artists? the record company? very odd...)
      - $ 2,200,000 - marketing
      -------------
      $ 5,050,000 - profit. wait, didn't she say they made $6.6 million?
      by her numbers she is off by $1.55 million
      I would say that the entire article is suspect, since it's clear that Ms. Love can't even do simple arithmetic. I'm sure that she feels slighted because she isn't getting 100% of the millions her albums make, but the fact is that she is living the rock star lifestyle and she has a lot more money and other advantages that most people don't enjoy. Sure, I agree that artists should get a decent cut of the profits from their music but I really hate to hear them cry about how they just aren't getting that extra million or two past the millions they have gotten. They should try working minimum wage scrubbing floors for a while and we'll see how much they cry about being a celebrity.
    14. Re:I'd be pissed by Anonymous Coward · · Score: 0

      Well, you got the platinum right, but gold is 500,000.

    15. Re:I'd be pissed by Graff · · Score: 1

      Actually we are both wrong. According to the RIAA website (warning, Slashdotters' eyes may burst into flame upon viewing this site), gold is 500 thousand albums and platinum is 1 million albums.

      I agree that touring is usually a big win for artists, many of them do much better off of a tour than off of album sales. I included that when I said "This is not counting other sales such as concerts, commercials, product endorsements, book deals, celebrity freebies, and all the other perks of being a star."

    16. Re:I'd be pissed by clambake · · Score: 3, Insightful

      How about you hire someone young, hungry, and promising who doesn't cost you an arm and a leg to produce your movie rather than hiring Steven Spielberg to do it?

      Saying this kind of thing just shows that you "don't get it". Ok, so the record company says, you need to hire MR Bigshot for $10 mil for 5 minutes of video... you have no choice it's in your contract...

      Or, ok, mr smart guy, you were smart enough to have some artistic control added into your contract, well, WE always have to aprove your albums before they are officially sanctioned to go on sale, so we just don't approve. Sorry. All your money spent on no name directort is wasted now.

      Oh, and since you signed a contract that says you MUST publish 5 albums and 8 videos before you get out of the contract, you are stuck with us until you put out an album that we "approve" of. You can't legally work another day of your life in this business with our say so... You can't really even sing in the shower, we own your voice forever, bitch. And if you piss us off enough with your fancy college student directors, maybe we'll just NEVER approve any more of your albums... Of course, w'll make sure, before we do, you'll be on our "solo" contract so even if you try to form anothe rband you cant.

      So, in conclusion, ha-ha, fuck you. Sincerely, The recording company.

    17. Re:I'd be pissed by Anonymous Coward · · Score: 0

      Most of your comment makes sense, but there are certain places where $20,000 just doesn't cut it. If all the band members pitched in and bought a place in rural Oklahoma (about $20,000 for a couple acres, last I checked), they could live nicely. In a number of big cities, that's incredibly difficult, and they might even need welfare.

    18. Re:I'd be pissed by edverb · · Score: 1

      For an insider's perspective on record company dealings with artists, check out "The Problem With Music" by Nirvana producer Steve Albini. I'll spare us all the math for brevity (read the article for the balance sheet), but Albini's "real life example" has the band making "7-11" paychecks on sales of 250,000 units of their debut LP, supported by a fairly successful tour, complete with the math that explains the financial f*cking of the band.

      Quick excerpt (the intro):

      Whenever I talk to a band who are about to sign with a major label, I always end up thinking of them in a particular context. I imagine a trench, about four feet wide and five feet deep, maybe sixty yards long, filled with runny, decaying shit. I imagine these people, some of them good friends, some of them barely acquaintances, at one end of this trench. I also imagine a faceless industry lackey at the other end holding a fountain pen and a contract waiting to be signed. Nobody can see what's printed on the contract. It's too far away, and besides, the shit stench is making everybody's eyes water...

      --
      Vonnegut: "What is the purpose of life? To be the eyes, ears, and conscience of the Creator of the Universe, you fool."
    19. Re:I'd be pissed by wfberg · · Score: 1

      I'm a rapper and if I made it big, 12 cents wouldn't be enough

      Oh really?


      Yeah really. Remember, the competition is.. 50 cents!
      --
      SCO employee? Check out the bounty
    20. Re:I'd be pissed by kilonad · · Score: 1

      There are independent film makers out there that make pretty damn good two-hour movies for well under a million. How about you hire someone young, hungry, and promising who doesn't cost you an arm and a leg to produce your movie rather than hiring Steven Spielberg to do it? Sure sure, you gotta spend money to make it and the video is an advertisement for the artist but either cut the cost or stop crying about how expensive it is.

      Take a look at independent films. Now take a look at music videos being played on MTV. If you don't understand that some art house music video would completely flop on MTV, you're an idiot. There have been a few exceptions to that rule, but they've been few and far between. At best, it'd probably be a return to the quality of the music videos of the 80s, and you don't want to look "out of date" when you're advertising.

      The band gets 2 million (20% of $11 million in sales) and then gets charged:
      $2,000,000 - royalties
      - $ 500,000 - 50% of 1 million for videos
      - $ 200,000 - for the tour, which is really an investment for
      the artist since tours MAKE money for artists
      - $ 300,000 - for radio promotion, again an investment
      that drives up their record sales
      ------------
      $1,000,000 - leaving them basically with their original
      advance of $1,000,000


      And they have to pay that advance back, so $1,000,000-$1,000,000 = $0.

      I would say that the entire article is suspect, since it's clear that Ms. Love can't even do simple arithmetic.

      Who can't do simple arithmetic?

    21. Re:I'd be pissed by delphi125 · · Score: 1
      I don't know about arithmetic, your subtraction seems to be accurate, but... JK Rowling is the only case I can think of of paying her advance back (she wanted more time for book 5).

      An advance is just that - payment in advance - and the whole point people like Courtney Love and Janis Ian are making it is very unlikely to actually make any more.

      Sadly I recently fell in to this trap myself. No contracts on the horizon, guy with small company convinces me to work (as lone developer, at relatively pathetic rate) on his niche project. Half a year later I discovered that Microsoft was in the same niche. Eighty staff & multi-million budget. Oh and their product sold for 1/10th of the price. So anyway, without a job again but at least a modicum of self-respect. I'm lucky I can (just) afford to.

      Summary: bosses abuse/lie to/underpay artists, creators and developers. Go capitalism, go!

    22. Re:I'd be pissed by Graff · · Score: 1
      $1,000,000 - leaving them basically with their original advance of $1,000,000

      And they have to pay that advance back, so $1,000,000-$1,000,000 = $0.

      No, they still get the million. It's just that the million comes from their royalties, not from out of the thin air. So instead of getting 1 million from the advance and another million from the money left over in the royalties the band gets just the 1 million from the advance. It's like if I loaned you $100 and you gave me the right to sell your guitar in return. I sell your guitar for $100 and so I keep the money from the proceeds. You still get $100, but you paid me back for my loan. That's how an advance works.
    23. Re:I'd be pissed by Graff · · Score: 1

      Lol, good one. I should have seen that one coming.

    24. Re:I'd be pissed by the+kfc+avenger · · Score: 1

      Yeah man, you'd need at least fiddy (50) cent.

  22. hello and welcome to last week. by prockcore · · Score: 0, Troll

    2003-06-16 17:35:03 How much do the artists really get from mp3 sales? (articles,money) (rejected)

    How foolish of me, I should've waited a few days before submitting.

    1. Re:hello and welcome to last week. by deadsaijinx* · · Score: 1

      that's cuz we were busy with our 50th SCO post for the week and Moz 1.4 RC2. I mean, come on man. RELEASE CANDIDATE 2! It doesn't get much bigger than that

      --
      YOU SUCK BALLS!
  23. Re:0/0 != 100%, it is undefined, dumbass by etymxris · · Score: 1, Interesting

    100% of 0 is 0. And everyone gets a hundred percent of the total, including me. Math is fun.

    (It all depends on how you ask the question. If you ask "How much is 100% of 0?" you have a well defined answer. If you ask, "What percentage of 0 is 0?" you have a problem with division. The solution: be a little more charitable and allow yourself to laugh every once in a while.)

  24. 12 percent by ruprechtjones · · Score: 1

    "the artists get a measly 12 cents for each download"

    So that's twelve percent, this actually sounds higher than what they make off of CD sales. What's the big whoop?

    --
    Kip Hawley is an idiot.
  25. Mesaly? by Devil+Ducky · · Score: 3, Insightful

    Considering that if you went to a store and bought an overpriced CD, the artist would get somewhere around 1-3 cents per CD; I don't think that 12 cents per song is a bad deal. I was quite surprised by how often, from Apple's claims, people are downloading whole CDs from them. Then I thought it out. $1 per song, 15 songs: $15 from iTunes; $20 from a store... plus I don't have to get up and walk to the car to drive to the store. Anything that saves you money while making you lazier will be a success.

    I know a lot of people here are going to be mad that the record company is getting anything, but I also dont see a problem with that as long as it is the record company that's doing the work of recording, advertising, listing with iTunes, etc. It's what record companies are for, after all.

    --

    Devil Ducky
    MY peers would get out of jury duty.
    1. Re:Mesaly? by cruppel · · Score: 1
      ...Then I thought it out. $1 per song, 15 songs: $15 from iTunes; $20 from a store...

      It gets better: Many* albums in the iTunes store cost a mere 9.99, no matter the number of songs on it. So that's 10 dollars saved, give or take.

      * I say many because I don't feel like looking up the real numbers
    2. Re:Mesaly? by black+mariah · · Score: 3, Informative

      It's closer to a dollar a CD. Just keep in mind that out of that dollar the band has to pay for paying back it's advance from the label, pay back all recording costs, and pay for any and all touring they do. I don't know any other business where the employees get fucked over so much.

      --
      'Standards' in computing only impress those who are impressed by things like 'standards'.
    3. Re:Mesaly? by whiskers · · Score: 1

      How about boxing? The promoters get all the money and you get your brains beat in besides.

    4. Re:Mesaly? by Scudsucker · · Score: 1

      It's closer to a dollar a CD.

      For who? Maybe for established bands with good contracts and industry clout (i.e. Metallica, Aerosmith), but certainaly not for Joe Smoe Band.

    5. Re:Mesaly? by leviramsey · · Score: 1

      Metallica (well, E/M Ventures, which is 67% owned by the members of Metallica) gets $4-$5 per CD.

    6. Re:Mesaly? by Anonymous Coward · · Score: 0
      How the hell does a post that cites an imaginary figure of 1-3 cents per cd get modded as 'insightful?'

      MOD PAReNT DOWN.

    7. Re:Mesaly? by black+mariah · · Score: 1

      Joe Smoe Band gets more money than Metallica, because they release their own shit so they clear $10 on every CD. Check 'em out sometime. Killer blues rock. ;) Seriously, the average royalty per CD is anywhere from $0.75 to $1.25. This is based on what I've gathered talking to people over the years.

      --
      'Standards' in computing only impress those who are impressed by things like 'standards'.
    8. Re:Mesaly? by Registered+Coward+v2 · · Score: 1

      It's closer to a dollar a CD. Just keep in mind that out of that dollar the band has to pay for paying back it's advance from the label, pay back all recording costs, and pay for any and all touring they do. I don't know any other business where the employees get fucked over so much.

      Try virtually every company in the world. Companies make money based on the productivity of their employees - and pay the cost of doing business out of that revnue.

      The costs they pay in training, equipment, facilities, benefits, etc. are reflected your salary - you only see what they pay you, but their total cost is higher. They in effect subtract that and come up with a salary - which you get. Now, you may feel you don't get paid enough based on what the company makes off off you, but that is a different issue. In the end, employees pay for all the costs of producing the product because they get less money than the company takes in for their work (unless its a 90's .com, where revenue, benefits and salary have no relationship to each other or reality, which is one reason the invisible hand slapped them)

      Musicians could become salaried employees (much as actors once were), but I bet they'd be unwilling to do so and give up the chance to hit it big. It's no different than an investment banker who is willing to work 100 plus hours a week starting out, for less money than they could make elsewhere, because they want the million plus paycheck a partner gets, and everyone knows they will make partner (even if less than 10% really do).

      --
      I'm a consultant - I convert gibberish into cash-flow.
  26. And thats exactly how it should be by Anonymous Coward · · Score: 3, Insightful

    When you buy a car, how much of that money do you figure goes to each engineer who was involved in designing it? Probably much less than the profit margin of the dealer or the car company. Now think about the modern popular music industry: It truly is built on huge economies of scale, and just like that car, every track of music you buy is the result of the work of many different people. The task of the "artist" themselves varies depending on the particular group, but as a general rule, they are more replaceable than a highly-trained engineer, and each has unique value mainly because of their public image, which is itself crafted by record company marketing departments. Nonetheless, probably no one person receives a larger share of this money than the "artist" involved, which is in many ways unfair considering the amount of effort put in by producers, recording engineers, and of course the marketing department, but obviously the market viability of the work depends to a certain extent on the presence of the artist, so the market rewards them with a greater share. These figures, in short, are simply proof that free markets are working well.

    (of course, I leave it as an exercise for the reader to determine the share of the revenue from each song you pirate on Kazaa that goes to the artist)

    1. Re:And thats exactly how it should be by Anonymous Coward · · Score: 1, Insightful

      These figures, in short, are simply proof that free markets are working well.

      HA ha. Yeah. The free market is really working great here. So great that we need a larger and larger and more complex patchwork of laws to hide that fact that these guys are all getting paid WAY too much. Free markets are supposed to be mostly self-organizing.

      Having helped record a few indie albums myself, I think these big name producers and engineers and marketing departments need a 75% pay cut EFFECTIVE IMMEDIATELY. All you get is the name. There are 1,000 folks with the same exact skills who would kill for the job.

      Free markets have very little to do with this.. it's a monopoly in action, keeping prices sky-high. Sure, WITHIN the rarified atmosphere of the music industry, this bears some resemblance to a free market, but that's like saying there's a free market in Communist China because the better beauraucrats and politicians in the party get the best government jobs.

    2. Re:And thats exactly how it should be by black+mariah · · Score: 1

      It's obvious you know DICK about the record industry. Let me enlighten you. On the average CD, the producers and engineers come out the best, money wise. They're paid flat fees and if they played their cards right, get a percentage from the profit. These fees vary quite a bit, so nailing down a number is tough. Figure $5,000 to $20,000 for a sizable indie release, to maybe $100,000 or better for a major label release. They are paid when the work is done. No waiting for royalties, no advances to pay back, none of the bullshit. If the CD doesn't sell well, the artists won't see a fucking dime. The engineers do. Periphery people (advertising and shit like that) don't even enter into the fucking equation as far as royalties. They're paid by someone else some other way. You also seem to confuse shit like Britney Spears with REAL musical talent (I won't name names. That's too much of a matter of opinion). In a GOOD band, nobody is replaceable and their job is a fuckload more important than the engineers. ANY engineer will tell you that a great engineer can't make a shitty band good, but even a shitty engineer can make a good band sound good. There's just no way to fuck up talent.

      --
      'Standards' in computing only impress those who are impressed by things like 'standards'.
    3. Re:And thats exactly how it should be by kisielk · · Score: 1

      This isn't really a fair comparison as most engienering projects don't work on a profit sharing model. While artists get a cut of the money taht their albums sell, Engineers are usually on a salary or work on a contract basis, so they get paid regardless whether or not the product they design sells.

    4. Re:And thats exactly how it should be by gad_zuki! · · Score: 1

      >The task of the "artist" themselves varies depending on the particular group, but as a general rule, they are more replaceable than a highly-trained engineer

      I wouldn't call that a general rule at all. Each artist/band is its own brand. If your post was true we would be happy to buy whatever the newest Sony record is, but that's not at all how it works.

      Look at any band that has had a significant line-up change. This is often professional suicide.

      >It truly is built on huge economies of scale, and just like that car

      Not true at all. Its a tiny scale and albums mixed in someone's basement can easily be good as the stuff in the store. In fact, I would go as far as saying that it is naturally a cottage industry that is artfically pumped up to be a mass industry through stuff like payola, lack of diversity, incredible amounts of advertising focused on a small part of the available catalog, etc. In other words the labels have a vested interested to treat music as something only made by the talented (they decide who) and who deserve celebrity status because of their amazing skills, when in reality their skill level is fairly common.

      >These figures, in short, are simply proof that free markets are working well.

      Funny. No wonder you posted anonymously.

    5. Re:And thats exactly how it should be by NaveNosnave · · Score: 1

      The task of the "artist" themselves varies depending on the particular group, but as a general rule, they are more replaceable than a highly-trained engineer, and each has unique value mainly because of their public image, which is itself crafted by record company marketing departments.

      You and I listen to very different kinds of music.

    6. Re:And thats exactly how it should be by tuba_dude · · Score: 1

      Hey, technically, it is a "free" market. The companies and businesses are able to do whatever they want, moreso if they own politicians.

      --
      "The government of the United States is not, in any sense, founded on the Christian religion."
    7. Re:And thats exactly how it should be by kien · · Score: 1
      (of course, I leave it as an exercise for the reader to determine the share of the revenue from each song you pirate on Kazaa that goes to the artist)

      I'm sure you would...especially since the RIAA and all of its apologists can't seem to figure it out.

      --K.
      --
      Sig: Bad people happen. Try to avoid being one of them.
  27. Top Artists Balking At A La Carte Downloads by mechaZardoz · · Score: 5, Interesting
    billboard article

    Despite the major labels' success in clearing hundreds of thousands of tracks for purchase online through services like Apple's iTunes Music Store, some top artists continue to resist authorizing the dismantling of their albums for Internet consumption as a la carte singles. Some acts are requiring that their music be sold exclusively in album bundles. For example, Linkin Park recently pulled its music as a singles offering from digital services. Sources say the band has expressed concerns about undercutting album sales. Other acts with similar stipulations about their work include Radiohead, Madonna, Jewel and Green Day, sources say.

    Now, from an artistic standpoint I can see where they are coming from, there are certainly albums that must be experienced as a whole, or at least in the order that they were laid down. Still, I have to wonder whether they're not just shooting themselves in the foot; if the concern is over money lost to piracy, wouldn't 12 cents in the hand be worth it to an artist rather than 0? Eventually, they'll make the money back on volume; it seems they're too obsessed with immediate returns.

    1. Re:Top Artists Balking At A La Carte Downloads by Anonymous Coward · · Score: 0

      Yeah, I wanted a track from the band The Music so I downloaded the new iTunes and looked for it, but could only buy the whole the album. So, used Limewire and downloaded it for nothing. Maybe I'll buy the album one day if I can find a job... oh well...

    2. Re:Top Artists Balking At A La Carte Downloads by enol · · Score: 1

      "Sources say the band has expressed concerns about undercutting album sales. "

      Yeah, longing for the days when people were forced to purchase an album for the sake of hearing perhaps one or two of their songs. This makes me ill, in their eyes, it's simply 12% of $20 is > 12% of $1.00 IMO. Oh yes it's undercutting the worthless "album" sales because the albums these days are such crap. If they truly believed their songs to be worth every penny, they wouldn't have such fear about losing album sales.

    3. Re:Top Artists Balking At A La Carte Downloads by Anonymous Coward · · Score: 0
      Well Jewel has sold out. She's doing whatever her owners tell her.

      Radiohead is just makes the kind of album you can't get a grip on by downloading one song.

      madonna and greenday.. i thought they were left in the 90's.

    4. Re:Top Artists Balking At A La Carte Downloads by Burnt_Possum · · Score: 1

      If they're balking for artistic reasons, they might as well string the whole album together as one track and release it for a few bucks more. If it's that good as a cohesive whole, it should sell great. Think of it - short concept albums everywhere! Like the 70's, but concise!

    5. Re:Top Artists Balking At A La Carte Downloads by black+mariah · · Score: 1

      No, because they don't want people downloading the one good song in a sea of 15 shitty ones for a dollar and instead want them to pay $18 for the whole CD. Do you seriously think that LINKIN PARK has an 'artistic standpoint'? I didn't think so. ;)

      --
      'Standards' in computing only impress those who are impressed by things like 'standards'.
    6. Re:Top Artists Balking At A La Carte Downloads by afidel · · Score: 1

      I would postulate that
      a) It's not the artists, but rather the labels that are doing this because artists usually have little say after they sign their contract over how their music gets promoted or distributed.
      b) If they made albums that are worth a damn there should be enough tracks that poeple will buy to offset any potential decreased sales.

      p.s.
      funny enough two of those artists (Madonna and Jewel) are some of the few with albums strong enough that they probably COULD sell a ton of singles.

      --
      There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
    7. Re:Top Artists Balking At A La Carte Downloads by Anonymous Coward · · Score: 0

      This $.99 per song method is horrible for artists who don't make conventional albums. (i.e. 15 tracks, 3 - 5 minutes per track). Im listening to an album at this very moment that has a 41 second song followed by a 7 minute song. Should I have to pay the same amount for both these songs? From what I can tell these kind of services are for the most part going to be selling cookie-cutter pop artists, who's intentions are to make an album full of singles. My interest in $.99 per song downloads is fleeting fast.

    8. Re:Top Artists Balking At A La Carte Downloads by prockcore · · Score: 1

      Yet every single one of those artists has heavy radio rotation. I don't think the radio station is playing their entire album, why aren't they artistically opposed to that?

    9. Re:Top Artists Balking At A La Carte Downloads by antirename · · Score: 1

      Have you even heard the latest Madonna album? It blows goats. No, it's worse than that. She is redefining herself again... meaning ripping off the worst of everyone in the top 40 and mashing it all together into one steaming pile of shit. I'm not at all surprised she's asking that the whole thing be bought at once. Anyone over 12 would download one song, listen to half of it, and think "damn, I'm glad I only wasted a dollar".

    10. Re:Top Artists Balking At A La Carte Downloads by Anonymous Coward · · Score: 0

      Sucks being covered under child labor laws, doesn't it?

    11. Re:Top Artists Balking At A La Carte Downloads by T40+Dude · · Score: 1

      If all the songs on an album would be good, I'd buy the entire album. Unfortunately, in most cases very few songs on a CD are really of good quality. This selective purchase power that the consumer has started to enjoy through the iTunes music store should be encouragement for the musicians to keep up the maximun quality throughout their albums, and not just produce one good song, and fill the rest with crap just to fill the CD. One good example,IMHO, is David Bowie's Heather album. I bought the entire CD, not just one song.

    12. Re:Top Artists Balking At A La Carte Downloads by Anonymous Coward · · Score: 0

      That's just too bad, isn't it. Especially if it were true.

      Fucking liar. Any jabroni with iTunes 4 can check your sob story out and find out you're full of shit.

  28. Same old story by mharris007 · · Score: 1

    This news is not new. It has been known that for record sales and MP3 sales, that the artists generally pull in a very low percentage of the income made.

    Just ask the good majority of music artists out there, that they make more money from their touring rather than their actual record sales (in this case MP3 sales).

    This is how its going to be until the artists and the labels reform their relationship, but I have a strong feeling that this is not going to be happening any time soon. This sort of news always gets people wishing that the media industry was different, and gains a lot of sympathy for the talented artists out there.

    --


    ---
    Mike
    I'm going to kick the next person that I see with their karma rating in their sig.
  29. Boo fuckin hoo by Anonymous Coward · · Score: 0

    ...and the artists get a measly 12 cents for each download."...

    better then 0 cents a download from the friendly fucks of kazza no?

  30. Business 2.0 by ejaw5 · · Score: 5, Funny

    is this Business 2.0 "Full Speed" or "High Speed"?

    --

    $cat /dev/random > Sig
    1. Re:Business 2.0 by Alejo · · Score: 1

      high speed. i've seen this article like a week ago.

    2. Re:Business 2.0 by blowhole · · Score: 2, Funny

      I asked my boss what kind of Business he was running. He said something about Firewire and made me clean out my desk.

      --
      "Ask me about Loom"
    3. Re:Business 2.0 by Anonymous Coward · · Score: 0
      Sig: "Ask me about Loom"

      OK. What's this 'Loom' thing? Of course, this would be funnier if I didn't love LucasArts' adventure games.

  31. Measly? For some, excellent for most by gad_zuki! · · Score: 4, Insightful

    The article states that 12% is average. Only high-successful acts can do better and they are completely free not to opt-in to Apple's music store like Radiohead and Linkin Park have decided to do.

    Secondly, these are growing pains. 12% is excellent for a non-MTV/Clearchannel down your throat 24/7 mega-pop band. As diversity in the catalog continues and less money is funneled into four or five pop sensations, but instead funneled into exposing more artists then smaller advertising and word of mouth will produce more varied sales. Bands that start as nobodies and end as nobodies will be getting 12%. That's pretty good.

    Personally, I think moving to singles and a diverse selection is a step in the proper direction to satisfy both fans and artists. We're going to look back to the days of big radio and MTV and not believe our rampant fandom and misplaced loyalties, not to mention taste.

  32. Much better than albums by AvantLegion · · Score: 1
    Royalty payements on albums for artists range from 5% to 15%. But the real bitch is how much of that 5-15% doesn't even get to the artist's pocket.

    You see, after the recoupable costs (which are mighty, and include a "packaging deduction" which is around 15 to 20% of the royalties), then a good portion (half, according to some sources) of what's left is held as "reserve" to account for returned merchendise, etc! The "reserve" is (allegedly) paid back over 2 to 4 years, minus the expenses of returned CDs and stuff (and it's probably not a stretch of imagination to think of labels adding a "0" here or there to the actual figure of returns).

    When you take away things like packaging deductions and reserves, the 12% from iTunes is a lot nicer than 12% from albums.

  33. Seems about right by Billly+Gates · · Score: 2, Informative
    First off 30 + 40 + 12 != 100.

    Anyway, 12 cents a song for a 12 track cd = $1.44.

    I believe most artists make anywhere from $.75 to $1.50 per cd depending on the popularity of the artist. Yep you read that right.

    Infact they get a bigger share because the RIAA does not have to go through a greedy retailer which charges $5-7 per cd, and no shipping or manufactoring costs are considered. Its the retailers and not the RIAA who make the majority of the outrageous prices. If the RIAA sells a cd for $11.99, the retailer will bump up the price to $18.99 and pocket the difference. Infact I believe they already do this. They only discount if the product does not sell well.

    That is unless the artist is really big and has their own record label after their contract expires. That is difficult because most contracts require that the RIAA own the first 5-6 cd's. Mostly the big artists can afford to outsource to a small or indie label after many hits when the contract runs out. Metallica for example does have such a deal which explains why they sued Napster. They have alot more vested interest and their newer albums make a shitload more money for them. They do not have to have a huge record label to market for them.

    1. Re:Seems about right by Anonymous Coward · · Score: 0
      I can't believe this got modded up. Try RTFA some time! It's not even a page long, and most of it is a big pie graph for god's sake.

      In addition to the 30% the label gets, the 40% the service gets, and the 12% the artist gets, the publisher gets 8% and the "middleman" gets a 10% cut.

      30 + 40 + 12 + 10 + 8 = 100

      Also bear in mind these are only averages and aren't absolute. They may or may not reflect the actual percentages being doled out to each party.

    2. Re:Seems about right by carlos_avdas · · Score: 1
      They do not have to have a huge record label to market for them.

      Metallica are signed with Elektra Records. The last time I checked, Elektra were a huge record label...

    3. Re:Seems about right by leviramsey · · Score: 2, Informative

      Metallica are distributed by Elektra in North America (and a few Polygram (which is Vivendi, IIRC) imprints in Europe and Sony in Japan). However, Metallica are effectively indies distributed by a major label now.

      Metallica is legally E/M Ventures, which is a corporation set up about ten years ago to own and manage all Metallica intellectual property, as well as manage the band's affairs. It's share breakdown is basically, IIRC:

      • 16% Elektra Records
      • 16% Q Prime (the management company)
      • 20% Lars Ulrich
      • 20% James Hetfield
      • 16% Kirk Hammett
      • 12% Rob Trujillo

      Every dollar Metallica earns goes through that corporation and is counted as revenue. Expenses such as touring, office expenses (for running the fan club), promotion, record production, etc. are deducted, and a percentage of the profits and retained earnings of the corporation are paid out as dividends (I imagine Lars, James, Kirk, and Rob are somewhat in favor of making dividends tax-free, as that would basically make 100% of their incomes tax-free!).

      E/M Ventures maintains a manufacturing and distribution contract with Elektra, with a 50/50 split of wholesale prices (all this is basically risk-free money for Elektra), . Elektra is legally obligated to distribute any and all material Metallica chooses to have distributed in North America. And since, between them, any three members of the band have voting control of the corporation, what they say goes; if the band wants to release an album full of bluegrass, Elektra is obligated to send it to stores (with Elektra getting a gross profit of about $2.00 per unit, not counting their E/M dividends).

      Elektra took this deal because it gave them a huge cut of the non-recording business of Metallica, which is virtually incomparable in this era. When Metallica tours, they are their own promoters. They rent at a flat rate the stadium or amphitheatre or arena. They pay the opening acts. Essentially all the risk is taken by E/M Ventures, and the massive profits go to E/M. The same is true for licensing of the Metallica name and logo.

    4. Re:Seems about right by beowulfcluster · · Score: 1
      Elektra is legally obligated to distribute any and all material Metallica chooses to have distributed in North America. And since, between them, any three members of the band have voting control of the corporation, what they say goes; if the band wants to release an album full of bluegrass, Elektra is obligated to send it to stores

      Aha! Finally the answer to the riddle that is St. Angers presence in record stores.

      If the company was set up 10 years ago, shouldn't Jason own something of it? Did they just hand his share over to Rob (pretty nice deal for Rob if that's the case)?
    5. Re:Seems about right by leviramsey · · Score: 1

      Basically, when Jason left the band, the company paid him a substantial sum for his share of the company. Jason will continue to get the royalties due a writer for the 3 songs he co-wrote ("Blackened", "My Friend of Misery", and "Where the Wild Things Are"). Negotiations over what exactly his share was worth took quite a while (indeed, it wasn't actually until last December that the deal was made). I would imagine that it involved a payment somewhere in the realm of five to ten million dollars.

  34. measly = loaded comment by computerme · · Score: 1

    so its 12%. guess what. that's more than a lot of authors get in book royalties. 10% for the creator of copyrighted products is the norm across alll IP industries.

  35. What is the label doing? by ukyoCE · · Score: 2, Insightful

    Does the label really do nothing more than provide $$ in advance (ie: an EXTRAORDINARILY high interest loan) and provide some of the contacts (advertising means, etc.) for the artist to spend the advance on?

    Or now that all the radio stations and TV stations are owned by the same companies that own record labels, is it hard/impossible for an artist to get a decent deal on advertising without the media conglomerate's support?

    1. Re:What is the label doing? by afidel · · Score: 1

      It is basically impossible to get national exposure without the media companies. There are some Indie bands and DJ's that do it, but it generally takes years of blood, sweat, tears, and Raman noodle eating to do it. The chances of "making" it are pretty low even if you do get signed with label, let alone if you try to go indie. Funnily enough it's because there are a lot of talented people out there, if you want proof check out your local concert circuit for whatever music you are into, if it's anything like Cleveland's you can usually see several talented acts per weekend for about the same as the cover to a dance club.

      --
      There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
    2. Re:What is the label doing? by Savatte · · Score: 1

      The labels provide the upfront money because most artists can't afford it. Do you have the money sitting around to produce a record in a high quality studio with the right people working the controls? I sure as hell don't.

    3. Re:What is the label doing? by ukyoCE · · Score: 1

      Me neither, but if the record companies are doing little more than offering loans...

      isn't taking over the copyright and taking so much of the profit incredibly usurious? (excessive interest rate)

      If all or even a primary part of the record companies dealings is to loan money, shouldn't they be governed by the same laws that apply to bank loans?

      I assume the media companies must have some special touch to help you get advertising for that money they "loan" you. And i guess it's also a fairly risky business, considering their supposed failure rates on investments on new artists. But I wonder if that's not almost solely due to bad decisions on which artists to push, and also going overboard pushing the artists...

  36. RTFA by xombo · · Score: 2

    Look at the article, those are just key percentages, there is more to be given out, and it is in a chart on the article.

    1. Re:RTFA by Anonymous Coward · · Score: 0

      See, by not reading the article you can get modded as insightful, cuz the moderators don't read the articles either.

      40% of readers are ones who post without RTFA
      30% are moderators that don't RTFA
      29% are goatse trolls
      0.9934% cut and paste from the last RIAA article.

      And that leaves you.

  37. oh I'm gunna get flamed for this... by the-build-chicken · · Score: 2, Interesting

    ok...normal disclaimers apply here...I don't like stereotypes anymore than the next guy...but hey, they're a fact of life. You can, statistically, boil down a socio economic group to fit certain "patterns" and "trends"...like I said, not good, but usually true...so that's my disclaimer done...now onto my point

    I have heard a lot of people talking about how RIAA will shoot themselves in the foot because the economies are changing...ie, people will just not pay $20 for something they can download for $2 (taking into account time costs etc)...and I'm thinking to myself...ok...so what really will happen

    Ponder the following...and flame me if you think I'm off my rocker

    1) To download songs...you need internet access, possibly an mp3 player to play them back...relatively technological savy...and the willingness to spend the time on the computer to get them...this to me, says middle to high socio economic (see above disclaimer before flaming)

    2) Combine this with the fact that lower socio economic groups tend to spend more on entertainment (can't back up with specific figures right now...but I think it's a fair statement, and will be backed up by most retailers)

    3) Labels will spend more money promoting artists and genres that give them the greatest returns...that's just common business sense

    4)If your album doesn't get promoted by a label, at the moment anyway, you don't make it big as an artist...and your music dissapears apart from a few that 'discovered' you, and play you to their friends at parties

    5)If I asked someone at a record company...I'm sure they could tell me exactly what kind of music each different socio economic category listens to (statistically speaking), and indeed, could probably break it down further to gender, race etc...I would also go further, and say that these different categories would have very dissimilar tastes in music....so, here's my thoughts (I'm sure a lot of you can already see where this is going)...

    We download music...statistically, all within a few different genres....those genres stop being profitable...those genres stop getting promoted...those genres dissapear and get replaced with different kind of music...that appeals to groups that buy cds.....we bitch about how there's no good music anymore.

    so...a question...through free market forces, and economics...are we really just shooting ourselves in the foot (over the long term), by downloading music we like???

    (Humorous side note...maybe we should all go download some rap music today...consider it a national service)

    1. Re:oh I'm gunna get flamed for this... by Anonymous Coward · · Score: 0

      MOD PARENT UP!!! He said he's gonna get FLAMED!!!

    2. Re:oh I'm gunna get flamed for this... by cheshiremackat · · Score: 1

      No flames, but read some economics before your sociology...

      If what you were to say is true... holding that say Jazz/Classical/Opera (traditional stalwarts of the Upper Classes) and the new Techno/Instrumental of the new "techno elite" will the main area of online sales,(Due to techno savvy and disposable income) and that their subsequent drop in CD sales will be their death knell, you are mistaken... for this reason...

      If their sales were to drop in a 1 for 1 basis (1 CD lost for every 1 CD d/ld) then there is a compelling market to fill... Online sales should be much more profitable than brick and mortar... there are far less costs (labour, rent, etc) and as such the profit will be much higher... so to a Music exec all s/he sees is profit from these areas has INCREASED! (being that proportionatley more profit is sent to the music co's (i.e. no middlemen)...

      Now consider that online sales might actually exceed a 1 for 1 basis... it is possible that some people would buy Mp3s that they already own on cassette/vinyl... the sales are increasing, and are more profitable.. who would walk away from that market (alright the RIAA is not *that* dumb)

      Also, you need to factor in the relative vs. absolute expendatures... if someone in a lower income spends the same amount of $$$ as someone in a higher bracket, then the lower income is spending a *relatively* higher percentage of income, while they are both spending the same amount of money... the record co's don't care how much you spend relatively, they care absolutley, and will want you to buy expensive iPods and Stereo equipment to justify buying more music...

      _CMK

      holy "..." batman

      --
      Bad spellers of the world untie!
    3. Re:oh I'm gunna get flamed for this... by the-build-chicken · · Score: 1

      agreed...online would be more profitable...but labels don't seem to be running to fast towards that idea...you and I know the economic insentives for online music distribution...but for now (because it's only in the trial stages really) I've left it out of the debate and was commenting more on the effects of pirate downloads on the marketing strategies of labels...I mean, whether they put 2 and 2 together and figure out that sales are declining due to downloads...if sales in one area are declining...they will focus more towards the profitable areas of the business...do you see my point now...after taking online music sales out of the equation?

  38. Sure beats what farmers get by Anonymous Coward · · Score: 0, Interesting

    A box of wheeties with a picture of Tiger Woods on the box: Tiger gets a dime, the farmers get a nickel.

    1. Re:Sure beats what farmers get by the-build-chicken · · Score: 1

      care to translate dime and nickel for the rest of the world?

    2. Re:Sure beats what farmers get by Anonymous Coward · · Score: 0

      dime = 10 cents
      nickel = 5 cents

    3. Re:Sure beats what farmers get by Anonymous Coward · · Score: 0

      #define dime .10
      #define nickel .05

      is that good enougn, or has esperanto taken hold yet and I should use that instead?

    4. Re:Sure beats what farmers get by the-build-chicken · · Score: 1

      asked for translation...not definition...would have been more applicable to use a regular expression I think...but well done all the same

    5. Re:Sure beats what farmers get by antirename · · Score: 1

      Are you referring to your earlier reference about smoking up before posting? I nickel is half of a dime, a nickel bag is half a dime bag. Just remember dime == 2 x nickel :)

    6. Re:Sure beats what farmers get by the-build-chicken · · Score: 1

      wow...you guys can get bag for 10c...that's fantastic! Gimme a green (yes, irony) card application right now!

  39. Not exactly by cameldrv · · Score: 1

    Yeah, but you have to pay most loans back. If the album only sells a few copies, the artist still keeps the advance. If the album makes money, then it retroactively becomes a loan. Otherwise it is just payment for making the album.

  40. oh.. so... still more than they make on CDs. by Anonymous Coward · · Score: 0

    Typical artists get a less on CDs.. so how is this a bad thing?

  41. Apple won't deal with every artist down the block. by Anonymous Coward · · Score: 0

    It just doesn't make sense. They want a nice big block of material. Making penny ante deals with every new artist for just 12 songs wouldn't be worth the hassle. Posts like your show how little you know about business.

    But hey, the artist is free to set up his own little site, set up his own checkout basket and collect 100%.

  42. At least it isn't worse than their current share. by banal+avenger · · Score: 1

    According to this article, an artist already gets 12%-14% royalties on 70% of CD sales, and "each time a new format comes out, the percentage is cut further." So, at least in this case, it sounds like they're getting 12% on all sales â" some fare better, some fare worse â" and it isn't a smaller percentage like it has been in the past. Compared to other businesses, if someone else sells and markets your product for you, you don't get very much out of it.

    That's not to say I agree with it, but I would think (although I have no proof) that an artist who runs his own label or is on a smaller label could get a larger cut from the label.

  43. artists don't make their money from record sales.. by xluserpetex · · Score: 1

    at least most of them don't. they make it from touring and merchandise. so if you really want to support an artist, see them on tour, and buy their stuff.

  44. GOOD DEAL! by shoot+speed+kill+lig · · Score: 1

    it's a better deal than they get from the majors if for nothing else than they don't get ripped off for the cost of promos, cut-outs, and defects this way ------------ GOD record companies SUCK

    --
    people only follow the rules they want to
  45. Better by dtfinch · · Score: 1

    Notice that 12% is much more than the artists get from CD sales, even after considering that the albums sell for half as much as the CD.

  46. Consumers should decide! by dekashizl · · Score: 5, Funny
    I think that instead of a flat $1 per song, you should be able to have a payment form like a restaurant bill with a flexible tip, like:
    $[1.00] Song
    $[0.05] Service Bonus
    $[0.20] Artist Bonus
    $[0.00] Label Bonus
    ===
    $ 1.25 Total

    Thank you for using iTunes and have a nice day!
    1. Re:Consumers should decide! by Anonymous Coward · · Score: 0
      How about:


      $[1.00] Song
      $[0.05] Service Bonus
      $[0.20] Artist Bonus
      $[5.00] Label Bonus
      ===
      -$ 4.25 Total

      Thank you for using iTunes. Your check from the RIAA is on it's way!

    2. Re:Consumers should decide! by Anonymous Coward · · Score: 0
      shit, I'll try again :)

      How about:


      $[1.00] Song
      $[0.05] Service Bonus
      $[0.20] Artist Bonus
      -$[5.00] Label Bonus
      ===
      -$ 4.25 Total

      Thank you for using iTunes. Your check from the RIAA is on it's way!

    3. Re:Consumers should decide! by PetWolverine · · Score: 1

      I don't think that's such a great idea. It looks good on the surface, but consider that restaurants use tip money as an excuse to pay waiters below minimum wage. By analogy, the record industry might end up paying the artists even less, taking a bigger cut themselves, figuring that artists who "deserve it" will make that money back in the tips. So, the artist makes the same amount, you get charged more, and the extra money goes to...the record execs.

      --
      I found the meaning of life the other day, but I had write-only access.
    4. Re:Consumers should decide! by enderwig · · Score: 1

      blech. That begins to sound like buying concert tickets from the big concert producers.

      $30 Ticket Fee
      $5 Building Use Fee
      $5 Building Service Fee
      $10 Transaction Convenience Fee
      $5 Sales Tax
      ===
      $55 for a $30 dollar ticket

      Or how about the banking system and the misc. banking fees?

      Anthony

    5. Re:Consumers should decide! by MatthewB79 · · Score: 1

      Don't forget about shipping charges! But it's not that bad if you don't buy tickets through Ticketmaster and buy them at the venue box office. You can at least aviod the Convenience fee and shipping.

  47. Re:0/0 != 100%, it is undefined, dumbass by Anonymous Coward · · Score: 0

    By that logic, the record companies get %100. Come to think of it, I get %100 too :D

    Gimme my money!

  48. Fools by Anonymous Coward · · Score: 0

    Mechanical royalties are 8 CENTS. The artist is making a freakin killing stop yer bitching.

  49. Um, you're surprised businesses are for profit? by Anonymous Coward · · Score: 0

    The record industry, as a whole, exists to take money from you and me.

    What did you think they were, a charity? Why would anyone go into business, other than to attempt to make some money? Why do YOU go to work? Is it just because you have nothing to do? Or is it because you need to make money too?

    Are you people so naive and think that products just come from this magical tree somewhere in an enchanted forest? No, it takes human effort to do things, and those humans want money too. This is why things cost money. You must obviously still live with Mommy and Daddy.

    1. Re:Um, you're surprised businesses are for profit? by Anonymous Coward · · Score: 0

      The music industry is lobbying (successfully in far too many cases) for changes in the computer industry, which is my industry.

      I'm not going to bend over, just because they suggest it, either.

  50. actually it's surprising by b17bmbr · · Score: 3, Insightful

    very few artists, except for metallicunt and a few others, bitch about file trading. artists make their money on the road. in fact, most don't even own the music. they are treated like 2 dollar vegas whores, get paid for shit, and are turned out like a sorority girl in the morning when their records stop selling. file trading helps the artists by giving them more exposure, and generates fans which go see them live. in fact, i'm actually surprised the in the IP sense, they don't get a dime.

    the music "industry" has lost far more due to artisits being able to produce their own albums and generate their own music. technology has hurt the music industry. iut has freed the artist to bypass the studios and go stright to the people. all the music industry has to do is look at the crap they are pushing and see they are dealing with a more discerning clientele. how many teeny-bopper, perky breasted teenagers and tatooed, skinny, psuedo-punk wannabee bands do they think we're gonna buy?

    --
    My problem? I was perfectly gruntled, until some numbnuts came by and dissed me.
    1. Re:actually it's surprising by Sheetrock · · Score: 3, Interesting
      I've seen this argument a great deal, but it sounds much more plausible that the artists are mum about file trading because they don't want the backlash from P2Pers that 'metallicunt' suffered when they went on the offensive. I can't imagine that many of these artists that are getting screwed by the music industry are thrilled to find their songs being traded via P2P -- after all, when they actually collect royalties they aren't that hot, so every bit they miss out on hurts.

      I agree that file trading increases exposure, and would not be surprised to discover that a great number of people who enjoy it actually increase their purchases of CDs (a net good for the industry). However, the music isn't there by the will of the artist and/or copyright holder. Silence doesn't always indicate acquiescence, and again if an artist is just scraping by they're probably not in a position to take risks on the goodwill of the file trading community.

      There are artists that willingly allow taping/trading of concerts, and places online to download their stuff (with BitTorrent even). Why not give them a listen?

      --

      Try not. Do or do not, there is no try.
      -- Dr. Spock, stardate 2822-3.




    2. Re:actually it's surprising by b17bmbr · · Score: 1

      the grateful dead were the antithesis of anti-piracy. not only did they not discourage, hell, they actually encouraged people to tape their concerts. they conceivably lost billions in lost royalties, but would they have been around as long. now, i'm no dead fan. but they seemed to give people what they wanted, and their was a huge market for their concert tapes which they got squat for, excpet a legion of extremely loyal fans and very long careers. and what about bands like anthrax, judas priest, maiden, etc. they are thriving and still putting out music. how do many people hear them for the first time? mp3's.

      --
      My problem? I was perfectly gruntled, until some numbnuts came by and dissed me.
    3. Re:actually it's surprising by leviramsey · · Score: 1
      the grateful dead were the antithesis of anti-piracy. not only did they not discourage, hell, they actually encouraged people to tape their concerts.

      If you're going to be an idiot and equate allowing taping of concerts with being "the antithesis of anti-piracy", then I've got something to point out:

      You must think that METALLICA ARE THE ANTITHESIS OF ANTI-PIRACY.

      Metallica has allowed the taping of their concerts since the earliest days of the band. They've allowed non-commercial distribution (with trading included in that definition) since then. Their stance is the same as the Dead's.

    4. Re:actually it's surprising by edverb · · Score: 1

      "Their stance is the same as the Dead's."

      uhhhh....not exactly...

      ...when you consider that a Grateful Dead lyricist (John Perry Barlow) co-founded the Electronic Frontier Foundation, whereas Lars Ulrich has sued Napster.

      Maybe their Metallica and the Grateful Dead have the same terms on paper, but I strongly doubt that The Dead would ever sue a p2p company, alleging infringement.

      --
      Vonnegut: "What is the purpose of life? To be the eyes, ears, and conscience of the Creator of the Universe, you fool."
    5. Re:actually it's surprising by leviramsey · · Score: 1

      Anyone would agree with me that to state that Metallica are the antithesis of anti-piracy is ludicrous. The point was that equating violating copyrights on commercially released recordings and exchanging fan-made bootlegs are two issues with very little in common; one's stance on one issue means nothing in the context of the other. Indeed there are artists who take the inverse of Metallica's position, that is to say, they have no problem with people copying their albums, but they are opposed to people recording their concerts.

    6. Re:actually it's surprising by Anonymous Coward · · Score: 0

      "very few artists"?

      Phil Galdston, Grammy Award Winning Composer, Lyricist Music Publisher. Amber, Top Five Billboard Chart Hit "This is Your Night". Rivers Rutherford, Co-writer of 2001 billboard's Country Song of the Year. Martina McBride, Number One Country Music Hit "Wild Angels". Brooks & Dunn, Multi-Platinum Country Music Artists, Number One Hit "Brand New Man". Brad Paisley, Gold and Platinum Award-Winning Country Music Artist. Vince Gill, Grammy Award Winning and Multi-Platinum Country Artist. Matraca Berg, Co-writer of the 1997 Country Music Association Song of the Year "Strawberry Wine". Troy Verges, Nashville Songwriters Association International's (NSAI) 2002 Songwriter of the Year. Keith Urban, Grammy Award Nominee for Best Country Instrumental Performance. Dixie Chicks, Grammy Award Winning and Two-Time Diamond Award Recipient. Nelly, Multi-Platinum Hip-Hop Artist, Number One Hit "Hot in Herre". Stevie Wonder, Legendary Multi-Platinum Award-Winning Artist. Missy Elliott, Writer, Producer, Rapper, Singer. Musiq, Singer, Platinum Award Winning Urban Music Artist, "AIJUSWANASEING". Eve, Multi-Platinum Award Winning Artist, "Ruff Rydersâ(TM) First Lady". DMX, Multi-Platinum Award Winning Artist, "And Then There Was X". Shakira, Grammy-Winning Latin Pop Artist. Britney Spears, Multi-Platinum Award Winning Artist "Ooops! I Did It Again". Mary J. Blige, Multi-Platinum Award Winning Artist, "No More Drama". Lamont Dozier, Legendary Songwriter, including "Stop! In The Name Of Love". Sean (P. Diddy) Combs, Multi-Platinum Award Winning Artist, Producer, Founder and CEO of Bad Boy Entertainment. Vanessa Carlton, Singer/Songwriter, "A Thousand Miles" and Gold-Award Winning Artist for "Be Not Nobody". Glen Ballard, Award-Winning Songwriter/Producer. Luciano Pavarotti, Legendary Tenor. Renée Fleming, Grammy-Award Winning Classical Artist, "Bel Canto". Brian Wilson, Rock and Roll Hall of Fame Inductee and Founding Member of the Beach Boys. The Barenaked Ladies, One of the Best-Selling Canadian Bands Of All Time. Mandy Moore, Platinum Award Winning Artist, "So Real". John Rzeznik, Member of the Multi-Platinum Award Winning Group, the Goo Goo Dolls. Steve Smith, Member of Dirty Vegas. Mark Knopfler, Member of Dire Straits. Damon Dash, Executive Producer, Roc-A-Fella Records. Stephan Jenkins, Lead Singer of Multi-Platinum Group Third Eye Blind. Fabolous, Gold Award-Winning Artist for "Ghetto Fabolous". Danny Federici, Solo Artist and Sr. Member of the E Street Band. Joshua Bell, Internationally-Known Violinist. James Grundler, Singer/Songwriter, Member of Paloalto. Kelly Price, R&B Singer, "Priceless". Jim Donovan, Member of Rusted Root. Carl Sturken & Evan Rogers, Grammy-Award Winning Songwriters/Producers. Eminem, Grammy Award Winning Rapper. Elton John, Legendary Grammy Award Winning Artist. Lou Reed, Grammy Award Winning Singer/Songwriter. Neil Young, Legendary, Multi-Platinum Award Winning Artist. Shaggy, Grammy Award Winner, "Best Reggae Albumâ"âBoombasticâ(TM)". Scott Stapp, Frontman and Songwriter for Creed. Don Henley, Grammy Award Winning, Multi-Platinum Artist. Aimee Mann, Former Member of âTil Tuesday, Gold Award Winning Singer/Songwriter. Denyce Graves, World-Renowned Mezzo-Soprano Opera Singer. Sarah Brightman, Platinum Award Winning Artist. Jimmy Jam, Renowned Producer, Writer, Collaborator with Janet Jackson, Mary J. Blige, Prince. Steven Curtis Chapman, Grammy-Award Winning Christian Artist. Trent Reznor, member of Nine Inch Nails. Scott Weiland, Lead Singer of Stone Temple Anastacia, Top-Ten Single "Iâ(TM)m Outta Love". Deborah Harry, Lead Singer of Blondie. Art Alexakis, Lead Singer of Everclear. Damian Kulash, Member of OK Go. Victoria Shaw, Country Music Singer/Songwriter.

      My source

      You'll notice that the list includes respected classical artists as well as tenny poppers.

    7. Re:actually it's surprising by Kadagan+AU · · Score: 1

      it sounds much more plausible that the artists are mum about file trading because they don't want the backlash from P2Pers that 'metallicunt' suffered when they went on the offensive.

      Well, It seems that some artists have said otherwise. I know, this is a bit old, but I really enjoyed reading it. Seems funny to me that Madonna had said that she thought it was good because people could hear her music, then she later goes to release the "what the fuck do you think you're doing" tracks.

      --
      This space for rent, inquire within.
    8. Re:actually it's surprising by Anonymous Coward · · Score: 0

      Have you ever considered writing pornography? Seriously, I think you'd do great. You'd prolly hate the royalties scale, though, but that would just make your writing all that much better!

      I think you should look into it.

  51. 12%, so? what do you get? by Anonymous Coward · · Score: 1, Insightful

    If as an engineer, I'm the lead designer, and design a product, I don't get 12% of the profit. I would move to jamaca if I got 12%. The engineers working under me, the sales people, the managers, the guy who stocks the soda machine, the people who foot the bill for funding, etc, etc, etc all get a share, including the store that sells it.

    Lighten up people

    1. Re:12%, so? what do you get? by AntiOrganic · · Score: 2, Insightful

      No, you wouldn't. But say instead that your department gets 12% of the cut, which isn't that unrealistic.

      Artists don't make money by themselves. Most successful artists are bands with five members (for the sake of argument, even solo artists have touring ensembles, session musicians, etc.), management (which typically will take 15% of your gross earnings), and tour promoters, who will take a further cut.

      Don't forget, bands also have to pay back the record companies for all the money that the company spends marketing and promoting their product. So figure that for your first four albums or so, your 12% probably amounts to negative money.

      Can't leave out income taxes, either.

      So how much does everyone really end up with? Unless you're huge, probably somewhere in the realm of 10 to 15 cents per album sold.

  52. Sounds Like A Great Deal To Me by istartedi · · Score: 3, Insightful

    Why don't you show us...

    ...how Linux distros divvy up their dollars, and what percentage the programmers get.

    ...how work-for-hire proprietary software houses divvy up the dollars, and what percentage their programmers get.

    It's gotta be far less than a penny on the dollar for Linux, and I'd be surprised if it was more than a nickel on the dollar for all but the smallest proprietary software houses (where the coders are probably the owners anyway).

    So, if artists can make 12% of the gross online, that's sweet compared to a lot of other situations.

    --
    For all intensive purposes, "whom" is no longer a word. That begs the question, "who cares"?
    1. Re:Sounds Like A Great Deal To Me by Anonymous Coward · · Score: 0

      But the artist does EVERYTHING - studio and all. They even pay a 'promotional fee' for christ's sake. In a different system an artist could totally do without a label. The same can't be said for a group of programmers when you consider a large software project.

  53. gee thanks! by Thinkit3 · · Score: 1

    Well if you agree, I assume you would rather get non-marketing prices too. So that's two of us!

    --
    -Libertarian secular transhumanist
  54. Greedy retailer? by Anonymous Coward · · Score: 0

    So trying to cover rent, payroll, taxes and then have a little left over is now considered "greedy"? Oh fucking boy.

    1. Re:Greedy retailer? by Anonymous Coward · · Score: 0
      Most retailers get anywhere from %10 - %15 of profit per sale.

      If the RIAA (for example because I am not sure)sells cd's on average for $10 and the retailer remarks the price to $18, thats almost %50!

      Yes that is greed.

    2. Re:Greedy retailer? by Anonymous Coward · · Score: 0

      A 50% markup is not at all uncommon in retail. I work for a retailer, and you would not believe some of the markups on our products (except for wine which is practically a loss leader). As long as the customer believes they are getting a deal, that's all that really matters.

    3. Re:Greedy retailer? by autechre · · Score: 1

      KÃenig's Art Emporium, at least several years ago when my mom worked there, wouldn't carry any product unless they could do at least 40% markup on it. Aquarium and reptile stores generally have markup of around 100% (my brother works for two of them). Fast food establishments have obscene profit margins. It's mostly computer retailers that have thin margins, especially on certain items such as hard drives (far less than 10%). Computer hardware middlemen do even worse than the end retailer.

      --
      WMBC freeform/independent online radio.
  55. Great, assume this model works by zakezuke · · Score: 2, Interesting

    ...how long before we start seeing cd burning terminals at music stores where you can either buy full licensed albums, or pick and choose tracks ala cart? I imagine that such a service could be provided at similar cost to itunes and still make a buck or two.

    --
    There is no sanctuary. There is no sanctuary. SHUT UP! There is no shut up. There is no shut up.
    1. Re:Great, assume this model works by kris · · Score: 3, Interesting

      ....how long before we start seeing cd burning terminals at music stores where you can either buy full licensed albums, or pick and choose tracks ala cart?

      Until last week. The first such terminal was enabled last week in the city of Lübeck, Germany, which is incidentally pretty close to where I live.

      Kristian

    2. Re:Great, assume this model works by zakezuke · · Score: 1

      Sweet! How much does it cost you to buy a CD via that sorta system?

      --
      There is no sanctuary. There is no sanctuary. SHUT UP! There is no shut up. There is no shut up.
  56. Yes, he could run his own label. by Anonymous Coward · · Score: 0

    And he'd also have to cover the entire cut of expenses and expend more time being a manager, which takes away from any musical producivity. All of a sudden this extra work doesn't sound appealing, eh?

    1. Re:Yes, he could run his own label. by banal+avenger · · Score: 1
      All of a sudden this extra work doesn't sound appealing, eh?
      Not trying to start a war here, but I have to ask. Are you saying that the artist should be rewarded for avoiding all of the risk and "extra work?"
  57. You're fogetting... by cshark · · Score: 4, Informative

    That figure excludes deductions made by the record label for everything imaginable. Studios charge artists a fortune in promotional costs and touring, limos and so on. But even at 12c per track, that's a much better per track rate than artists have gotten traditionally from prepackaged albums.

    Another thing to remember is that Itunes is an unprecidented success in the industry. Say what you will about it, but they're still only targeting 2% of the computing population...

    --

    This signature has Super Cow Powers

    1. Re:You're fogetting... by AndroidCat · · Score: 5, Informative

      It's about the movie industry, but Fatal Subtraction is a good look at how these sorts of industries play numbers games. (Coming to America was a $350-million-grossing movie never earned "net profits".)

      --
      One line blog. I hear that they're called Twitters now.
    2. Re:You're fogetting... by McAddress · · Score: 5, Interesting
      But the two percent of the market they are targeting is the cream of the crop of consumers.
      1.I know this sounds like flaimbait, but Mac users will buy anything Steve Jobs tells them is good. (I admit it, I really want to get a 17 inch powerbook) 2.They are used to paying full price for things having to do with technology, because Apple products and peripherals don't go on sale. 3.They have proven that they like the product, with the iPod being as successful as it was. (Even before the windows versions)

      That is why the iTunes music store was such an unprecidented success. It was not just sheer luck.

    3. Re:You're fogetting... by Halo1 · · Score: 3, Insightful
      1.I know this sounds like flaimbait, but Mac users will buy anything Steve Jobs tells them is good. (I admit it, I really want to get a 17 inch powerbook)
      That's not just flamebait, it's plain wrong. Or did you forget about the Cube?
      2.They are used to paying full price for things having to do with technology, because Apple products and peripherals don't go on sale.
      Huh? Even Apple themselves hold sales every now and then, though they don't advertise them as such most of the time. They simply slash prices of systems that are going to be renewed in the near future. When they do hold an explicit sale, it means their inventory management failed, but I've seen that happen only once since Steve Jobs came back to Apple (Januari 2001, I remember that since I took advantage of it by buying my G4/400).
      That is why the iTunes music store was such an unprecidented success. It was not just sheer luck.
      I completely agree it was not just sheer luck. It was actually listening to the complaints of the consumers instead of trying to convince them that they were wrong (like the music industry does).
      --
      Donate free food here
    4. Re:You're fogetting... by chimpo13 · · Score: 2, Interesting

      12 cents per track, eh? Does Itunes actually pay bands?

      One of my bands has songs up on mp3.

      I'm not sure how many plays we've had. It currently shows 4,500 and we probably will never see a dime from them. They used to have an earnings page but the amount of songs played and the amount of money they owe us would change.

      I used to send them the same email every month for a year asking about it. They'd respond "you'll get an answer in 6 to 10 business days". They changed that in a wise decision that you had to pay them to get them to answer your question. I'm not going to pay mp3 money to ask them how much money they owe us. I just want to know why it's changed.

    5. Re:You're fogetting... by Anonymous Coward · · Score: 0

      Um. I do believe that you mean 6%, a little less then your beloved Linux, and yet still nothing.

    6. Re:You're fogetting... by DavidinAla · · Score: 1

      So Mac users will buy anything that Steve Jobs says to buy, huh? Is that why they all marched in lockstep to buy the Mac Cube a few years back? ;-)

    7. Re:You're fogetting... by Art+Tatum · · Score: 1
      2 cents per track, eh? Does Itunes actually pay bands?

      No, iTunes pays the record label. The record label pays the band. Maybe. If Hilary Rosen is in a generous mood that day.

    8. Re:You're fogetting... by Reziac · · Score: 1

      I've been told that mp3.com's payment policies have changed rather radically, frex no more pay-per-pay or pay-per-download. I was there a couple days ago and noticed that my artists-of-interest, who between 'em used to have a couple hundred MP3s available for download, now have only 2-3 files up apiece. Which made me wonder -- is mp3.com now charging per download? I know they charge for the "fan club" mailing list thing.

      --
      ~REZ~ #43301. Who'd fake being me anyway?
    9. Re:You're fogetting... by Beliskner · · Score: 1
      But even at 12c per track, that's a much better per track rate than artists have gotten traditionally from prepackaged albums
      Ah yes, quite true. The real advancement is the cost of distribution (the Internet) is something the CUSTOMER pays for (ISP charges). The revolution that will now come will be similar to the one where Theaters gradually fizzled into oblivion to be replaced by TV and allowed the centralisation of the creation of actor-based performances (Hollywood as opposed to Pantomine).

      The distributors will die a terrible death as they hedged the bet by leveraging their control of the music product to make the big hits so massive and succesful that they could support the up and coming artists. Economics assumes "perfect information", unfortunately you can't half-finish a song to gauge its marketability. The product has to be R&D'ed, pre-Produced, Produced and Post-Produced and released on pilot to guess the demand. 99.9% of songs fail. The very few successes paid for the music industry to survive despite this Inefficiency of Capitalism.

      Using the Internet as a distribution mechanism decreases the penalty of this inefficiency, but doesn't eliminate it, ah well.

      --
      A caveman dreams of being us, the incalculable power and riches. We dream of being Q, then what?
  58. Yeah, BUT by autopr0n · · Score: 1

    The record company is the one who actually spends the advance, producing the record. The record company picks the producer, does all the marketing, etc, with the money that was advanced. So they get to use that 12% to pay themselves back, and keep the 30% as profit.

    At least with CDs it's not so blatantly transparent that the artists are getting ripped off. After all, someone needs to press the records/cds, printer the liners, and ship them and all that. You don't really think of the cost. Over the internet, it's different. You pay a dollar for almost nothing other then the content. (the bandwidth costs are nominal for a single 3meg upload, compared to a single dollar)

    --
    autopr0n is like, down and stuff.
    1. Re:Yeah, BUT by autechre · · Score: 1

      Pressing the CDs is just manufacturing. Designing the CD case _can_ be an artistic effort, but it seems like most bands just don't try very hard. There are, of course, exceptions (Tool, Blanket Music, others).

      The other part thats requires actual talent and should always be adequately compensated are the producing and the engineering (tracking, mixing, and mastering). Many of the "top 40" bands these days sound awful without a good studio and a great engineer [comments about whether they sound awful anyway shall be saved for another discussion]. This is an essential part of the recording process, and applies equally to the online version. And even a great band (The Beatles) can go further with a great producer (George Martin). Engineers and producers (good ones) are artists too.

      --
      WMBC freeform/independent online radio.
  59. Artists not making enough? Balderdash! by smart.id · · Score: 1, Flamebait

    I'm sick of people saying that artists get shit for their work. Have any of you watched MTV Cribs? Have you seen the lifestyle these people live in? They have unlimited resources. As long as they're putting money in the bank, they could be set for life. There are people who do better and greater things for society and get paid much less. Perhaps, instead of talking about how little the artists get, we should be talking about how much they get...

    --
    blog & fiction: jd87
    1. Re:Artists not making enough? Balderdash! by AntiOrganic · · Score: 1

      I hate to say this, for fear of possibly being modded flamebait, but I would call the people on MTV Cribs neither "artists" nor "musicians." These are people that the record companies have decided are marketable enough to reimburse for their "work" pressing out the same crap cookie-cutter albums we've heard thousands of times before. This, of course, does not apply to everyone featured therein, but certainly would apply to the majority of the rap, pop-punk, and nu-metal superstars polluting the Top 40 charts.

    2. Re:Artists not making enough? Balderdash! by AntiOrganic · · Score: 2, Insightful

      Why do millions of people use AOL for Internet access? Some people don't know any better. People with no computer experience buy the hype and believe that it's the greatest thing since sliced bread. The same thing applies to musicians in the record industry.

      It's fairly accepted that if you ever want to make it "big", you need to be partnered up with a major label. Whether or not it's actually the case, the popular misconception is certainly pervasive enough to convince many people to screw themselves into shit contracts.

      Part of it is also psychological. If a scout from Sony approached you and wanted to sign you, you would probably be more excited than if some mom-and-pop BaBango Records from the other side of town wanted to push your EP. To many people, being signed to a major label gives them a feeling that they, to a degree, have already "made it." Many years later they tend to regret their dealings.

      And many artists DO start up their own labels. Some are rather successful at it, such as Steve Vai and his Favored Nations label, but most musicians don't have the business sense to manage a company like that.

    3. Re:Artists not making enough? Balderdash! by Zakabog · · Score: 1

      Actually... sure they have a huge house a nice car and as you said "Unlimited resources", the only problem is that they all belong to the record company. And, well of course they want the money back for this stuff. Sooooo the artist gets no money for their albums until all that stuff is paid off. If they started to stop selling albums, they owe the record label tons of money and end up going bankrupt, they have no money in the bank since they were never paid (they never made enough money from record sales to pay for all the stuff they bought) and they own nothing since the record company paid for everything they did own that you saw on MTV cribs.

  60. You realize this is NOT pure profit? by Anonymous Coward · · Score: 0

    Obviously you still live with Mommy and Daddy, where all of your expenses are taken care of. Here's a glimpse into the reality of owning a retail business. For starters, you have to pay rent. That's right, the landlord isn't letting you stay in his building for free. Then you have to buy equipment. Did you know that stores want money for that stuff? Then get this, the local government says I have to pay a fee just for the simple fact that I own this stuff. WOW! Then there's the matter of staff. Well fuck me twice, but it seems these people insist on getting PAID! Then if I'm lucky to have anything left over, the IRS for some reason says I got to give them some. They mentioned something called taxes, and that it supposedly pays for roads, the President's salary, welfare, and a bunch of other useless things.

  61. That rant dosn't make any sense at all by autopr0n · · Score: 1

    If you want, you can buy manuals from ford or any other manufacturer that will detail every single repair that can be done. Enough information to build the car from scratch if you wanted. A car company is not a content industry. When you pay for a car, you're paying for the metal, and the sweat that went into making it. And yes, a lot of the money that you spend on a car is labor cost, meaning a lot of the money actually goes to the people who built it. And an engineer is always more replacable then an artist.

    (of course, I leave it as an exercise for the reader to determine the share of the revenue from each song you pirate on Kazaa that goes to the artist)

    What do you mean? All of it goes to the artist.

    --
    autopr0n is like, down and stuff.
    1. Re:That rant dosn't make any sense at all by stubear · · Score: 1

      "...and the sweat that went into making it."

      And you're not paying for this when you buy an album? Don't judge an entire industry from the biased, narrow-minded view many here on slashdot seem to share. Many people who create intellectual property put a lot of time, effort and themselves into the work they create. I'd wager they put a lot more time and effort into their craft then those factory workers making those cars.

    2. Re:That rant dosn't make any sense at all by MisterMook · · Score: 1

      How many people do you know who would work on a factory line in their free time? Now, compare that to amount of people who're putting out their writing for free that they've worked on in their free time with no expectation of pay. The only justifiable reason to support an increase in pay from a factory worker compared with a rock star is that it's easier to train good factory workers than good rock stars. CEOs of record labels and their lawyers are a different animal though, since one is uncommon and elitist enough that no one could probably amass good data on how to be a good CEO of a record label and good lawyers are as much a factor of the wealth and prestige of their client as anything else.

    3. Re:That rant dosn't make any sense at all by tuba_dude · · Score: 1

      With all due respect, those factory workers aren't creating the cars, they're putting them together. It's manual labor. Your first couple of weeks (depending on the complexity of the work), you'll probably be concentrating on exactly what needs to be done. Once you get used to the work, you memorize that X gets welded to Y and Z is plugged into X, and you let your mind wander.

      --
      "The government of the United States is not, in any sense, founded on the Christian religion."
  62. is 12% really that low? by lord+sibn · · Score: 3, Insightful

    Let's put this in perspective here. I work for a large retailer that grosses $60,000 per day or more (per store, not company-wide). How much of this money do I make in this same day? typically between $28 and $40. That's about 0.25% (give or take) of the gross revenues, for those of you not mathematically inclined. To put this in perspective, they're grossing about 50 times as much as I am, per dollar earned.

    Granted, the record labels do not have the recurring expense of having to continually refill stock, while my store does, but nevertheless; Record Labels are small fish in the big pond of economics. Sure, they may be making out like bandits as far as this is concerned, but in the grand scheme of things, not many people invest in record labels today, because they just don't make as much money as other industries do.

    1. Re:is 12% really that low? by Anonymous Coward · · Score: 1, Insightful

      and what contract are you on? is there anything that keeps you there after you are trained?
      How many people work there? For every 4 of you there each day, its 1% of their GROSS and that's probably at 20% margin, so for every 4 of you, its 5% of the daily margin on just cost of product, which means that for 40 of you, its half of the profit for the day, not including utilities, building costs, management, and corporate overhead.

      "Big business" outside of the music/movie industry isn't posting 100% profits each quarter, read the news and get more involved at the company you work at if you are so worried about how much of the take you get. You'll see that labor is a huge cost and a lot of the money goes to pay you and that other guy you take those hour long smoke breaks with instead of working.

    2. Re:is 12% really that low? by Alioth · · Score: 1

      But the record companies *loan* the money for artists to make their work. All that studio time, all the promotion etc. isn't actually paid by the record company - they just loan the money to the artist (the advance) to do it.

      I was quite happy that when I was doing software work that I was being paid but a small fraction of my employer's revenue of the product. I would NOT have done the job if the employer had said, "Here's a loan for you to pay the costs of running the office, buying your own computer, and bearing all the costs of developing this software, and then we'll just pay you a normal salary and expect you to pay back the money for the development costs". That's exactly what the record companies do. They want it both ways - not only do they want artists to be doing "works for hire", but they want artists to pay a large proportion of the costs!

  63. Ehh, those numbers can change by Aqua+OS+X · · Score: 1

    All in all, as an artist, it really depends on the label you sign with and the contract you sign. You could make 80% of album sales, you could make 5% of album sales, or you could make 0% of album sales.

    This is something that can't really be broken down into a pie chart of percentages unless you're going to average everything.

    Typically, if you're good, have a large fan base, and are smart, you'll make a lot of money. However, if your not very good, dumb, or both, you're probably going to get screwed.

    --
    "Things are more moderner than before- bigger, and yet smaller- it's computers-- San Dimas High School football RULES!"
  64. Some Perspective by Anonymous Coward · · Score: 2, Funny


    I don't get anywhere near 12% of what my employer is raking in for all the software that I write.

    If I did, I would see about hiring an assistant.

  65. what about 50 cents? by autopr0n · · Score: 1

    Hahaha. I'm am just so funny.

    --
    autopr0n is like, down and stuff.
  66. I know why! by Anonymous Coward · · Score: 0

    The breakup of the $1 single:

    .50 - The Record Company
    .12 - The Artist
    .37 - To bury those who have left us after hearing Celine Dion warble in Las Vegas
    .1 - To figure out a way to make Dion contract SARS

  67. What I'm saying is this. by Anonymous Coward · · Score: 0

    Everyone here screams that the artist should cut out the label and be his own distributor. But they think that somehow magically, with on effort, his product will be distributed. They forget that now he will have to secure financing, set up the distribution (whether it be digital or hard product), promote himself and basically set up this business from scratch. All while being a nobody. This is not easy! All this on top of finding the time to be an artist. Your typical Slashbot thinks this is The Sims, where you can accelerate time and live on cheats that give you unlimited money.

    That's what signing with a label does. Someone does all that work. And they should be entitled to some money as well.

  68. SHHHH!!!!! by Blaede · · Score: 1

    You're gonna put the idea in these guys heads that now $.99 a song is highway robbery. I have a yacht payment due, man!

  69. No flame, but missed a factor... by Anonymous Coward · · Score: 0

    I think you're forgetting to factor in at least one variable: socio economic class size.

    Which class of these do you think is larger:
    1. Upper
    2. Upper-middle
    3. Middle
    4. Lower-middle
    5. Low

    I would believe that the class populations follow a bell curve. That is to say:
    size of low ~= size of upper
    size of lower-middle ~= size of upper-middle

    And since it should follow a bell curve, that means:
    low < lower-middle < middle
    upper < upper-middle < middle

    So, with all of that, even if you are correct in the assumption that the lower and lower-middle classes spend more on entertainment, does their total, absolute expenditures exceed the total expenditures of the middle, upper-middle, and upper classes?

    If they don't then the record companies aren't going to focus their efforts there.

  70. Royalties: Comparison to Publishing by Nova+Express · · Score: 2, Insightful

    People should keep these rates in perspective with comparison to how much a writer makes off book publishing: A 12% royalty on paperback sales is much higher than normal, and 12% for a hardback is toward the high end of normal. 12% would be a more than respectible rate for a beginning-to-midlist author. (Stephen King and other bestsellers, of course, can get considerably more.) Also, a beginning writer usual gets between $3000-$5000 dollars as an advance on royalties (granted, the ways to screw writers after the advance have been given are far less numerous than in the recording industry...). Usually, there will be escalator clauses that bring higher rates after X number of books have been sold. Anyway, these are ballpark numbers for the science fiction field. Source: The SFWA Handbook, 1990, p. 62-69. (Note: Since 1990, if anything, rates have gotten worse, especially for midlist writers.) I am given to understand that advances in the Romance genre can be as low as $1000 for all rights (i.e., no royalties).

    While it is true that recording (and other artists) get screwed by media companies in many ways, the 12% discussed is not at all out of line with current reality in other fields.

    --
    Lawrence Person (lawrencepersonh@gmailh.com (remove all "h"s to mail)

    http://www.lawrenceperson.com/

    1. Re:Royalties: Comparison to Publishing by evilviper · · Score: 2, Insightful

      That may be true, but in book publishing, there are substantial costs for the publisher. Paper really isn't cheap, and shipping thousands upon thousands of pounds of it across the country is not cheap either. Contrast that with CD or online distribution. With online distribution, there is a tiny cost for each copy downloaded... No more books need to be printed, no more shipping needed. So, the label is taking almost half for themselves, but how much did they put in? Only the biggest artists get the amazing studios, the little guys only get the super-cheap studios, so it's not as if the production costs are high.

      What needs to be done is, to have a small record company expand. Instead of everyone having their own label, have one large one that gives a larger percent to the artist, but also recruits groups that aren't yet popular, giving them the same advantage. That would allow a label to do the same advertising, and pushing their product as the big guys do, but without the artists getting raped for no reason.

      --
      Slashdot gets worse every day... Pipedot: News for nerds, without the corporate slant
  71. music is a product by SirSlud · · Score: 1

    music is a product these days.

    products are cheap to manufacture. like shoes, say. maybe 20 bucks to make. now, think of music as the product. the people who make it dont get paid for it, because today, its product.

    the people who grant us access to distributing the art are the ones offering the valuable opportunity. Clearchannel, RIAA, ... witness the current middle-man payola going on in the industry now.

    --
    "Old man yells at systemd"
    1. Re:music is a product by sn0wcrash · · Score: 1

      Maybe I've been lied to, but my understanding is that Nike shoes cost about $2 to manufacture. That includes the slave labor. But fortunatley you can get them on sale for $60.

  72. Have you seen the Courtney Love Salon article by joeflies · · Score: 3, Interesting
    Very interesting article, although it's fairly old now (originally in 2000). Very enlightening, however.

    Courtney Love Does the Math

    1. Re:Have you seen the Courtney Love Salon article by SolubleFrank · · Score: 1

      Interesting to see our favorite senator Orrin Hatch there too.

      --
      Feed me a stray cat.
    2. Re:Have you seen the Courtney Love Salon article by Anonymous Coward · · Score: 0

      Not much has changed at all in that industry, except the steady decline of listenable music continueing unabated. The business models -- with exceptions like Apple's Music Store -- are static. Which is the problem, so far as fixing any of the issues brought up by Courtney.

  73. packaging costs and alcohol by TimMD909 · · Score: 1

    >doh...typo...."tired" = "tyres"

    Kids, marijuana and alcohol are bad... for God's sake, it took me nearly 5 or 10 minutes to figures that he meant to say "tires." That's when one should realize to put down the bowl or bud (or both for some) and try to sober a lil before attempting to create a stupid reply on Slashdot. Especially a long rant of something so stupi... [rest of comment clipped by Slashdot ;-)Aa

    1. Re:packaging costs and alcohol by n3r0.m4dski11z · · Score: 0

      well d and s are right next to each other and im drunk and can realize that. i think he was going for an fp tho because its like the third or fourth thread. if anything the joke shoudl have ran that the yatch(sp?) salesmen charged him for the priviliage of buying said yatch(fuck that word is unspellable) from him

      --
      -
    2. Re:packaging costs and alcohol by PetWolverine · · Score: 1

      That's when one should realize to put down the bowl or bud (or both for some)

      Considering that the bud is probably in the bowl, it should be both. Or did you mean, "the bottle or bud"?

      I think it's time to put down the bowl or bud (sic) when you try to say "alcohol and pot" and end up saying "pot and pot", or the equivalent. At least, that's the indicator I usually use.

      That and the old adage, "If you don't even know how to hit it, it's time to...what was I saying?...hey, pass that shit over here, man."

      --
      I found the meaning of life the other day, but I had write-only access.
    3. Re:packaging costs and alcohol by the-build-chicken · · Score: 1

      wha tha? you totally lost me there...no idea the point you're trying to make...wasn't going for fp...and the point was that they are planning to stop charging for packaging...on a product that has no packaging...hence wheels (I'm so over that other word) on a yacht is an appropriate analogy I think

    4. Re:packaging costs and alcohol by stanmann · · Score: 1

      BUD-weiser. Yeah. it's a brand name. perhaps you have heard of it.

      --
      Food not Bombs is a nice platitude but it breaks down when you notice that the Bombees are usually well fed
  74. Chancey deals & dollop dollars. by Anonymous Coward · · Score: 0

    So then no successful artist should be complaining then. They do bad they get to keep the money. They do good then the label gets compensated for taking a chance. Every chance that is taken and succeeds needs to be paid back. So what again are we getting mad about?

    1. Re:Chancey deals & dollop dollars. by cameldrv · · Score: 1

      I'm not. Clearly successful artists are subsidizing unsuccessful ones, and that subsidy is part of the label's cut.

    2. Re:Chancey deals & dollop dollars. by eht · · Score: 1

      it also goes to pay to "discover" britney spears and nsync and any number of other bands i could very easily do without

    3. Re:Chancey deals & dollop dollars. by Anonymous Coward · · Score: 0

      "it also goes to pay to "discover" britney spears and nsync and any number of other bands i could very easily do without"

      And by extending your logic. No bands would be discovered, and hence no music produced because for every group you like. There's someone who could "do without". The same could be said from everyone elses viewpoint.

    4. Re:Chancey deals & dollop dollars. by Anonymous Coward · · Score: 0

      Obviously many people like Britney Spears and NSync. What bands do you like? Because I assure I could do without THEM.

  75. Because labels promote them by Trepidity · · Score: 1

    Sure, artists can skip labels. Some might make it big on their own: as a bigger example of success, Bad Religion started out putting out their own records under the then-non-existent "Epitaph Records" imprint. Most will not make it at all: they'll be the literally thousands of no-name bands littering mp3.com.

    So while I'll agree record labels for the most part suck, the problem is that artists also for the most part suck.

  76. Re:0/0 != 100%, it is undefined, dumbass by etymxris · · Score: 2, Insightful

    Yes, that's the point. Math is an algorithmic process, one that gives answers to various well defined questions. You can ask an unanswerable question, such as "What percentage of 0 is X?" or you can ask an answerable question, such as "What is X% of 0?". The first question will literally have no answer, the second will always be zero.

  77. employees getting "fucked over" by Trepidity · · Score: 1

    I also don't know of any other business where the employees get to live like rock stars. It's not like most artists actually work 40-hour weeks like everyone else does. And the biggest problem, from the label's point of view, is that nobody wants to buy CDs from most of them. Thus, the label makes $0 on most of them, so has to take most of the profits from the few that do sell.

    1. Re:employees getting "fucked over" by tuba_dude · · Score: 1

      You're absolutely right. Artists don't usually work 40 hour weeks. If you count outside jobs of struggling artists that are actually trying to make something good, they're working almost every waking moment. (Real) Artists with money already lined up are working at least 50 or 60, with lyrics, composing, arranging for X number of band members (except soloists), practicing, and when it's time, recording. It's not as easy as you'd think.

      --
      "The government of the United States is not, in any sense, founded on the Christian religion."
    2. Re:employees getting "fucked over" by black+mariah · · Score: 3, Insightful

      Exactly. Everyone forgets that the 'rock stars' account for maybe one tenth of one percent of the WORKING musicians out there. They don't seem to understand that being a musician and being a rock star are two different things. Musicians generally spend all day at work, the lucky ones only have to work part time, the even luckier ones don't HAVE to have a real job, but do so because it means more gear and extra shit. Writing music is not easy. Booking gigs can take hours of club owner harrassment a day. Loading up for a gig usually takes a couple of hours of hauling heavy-ass equipment around. Then you have to unload at the gig. Then reload afterwards. Then unload back home. If you are a working, gigging, musician it's HARD FUCKING WORK. There aren't any roadies to carry your shit. There aren't any green rooms full of free food and beer. There aren't any bigass paychecks waiting for you at home. All you have is maybe a couple of hundred bucks (if you're lucky) and hopefully the ability to go home knowing you put on a badass show, because at the REAL musician level that's all it's about.

      --
      'Standards' in computing only impress those who are impressed by things like 'standards'.
    3. Re:employees getting "fucked over" by Anonymous Coward · · Score: 0

      Boo-fucking-hoo. Try working 80 hours a week at a fucking steel mill if you don't like lugging around those oh so heavy 65 pound amps and a few guitars. The problem is most musicians are burn outs who can't do simple math and end up getting screwed by the labels. They figure "well, if we don't hire management we can keep more of the money. And how hard could it be to figure out those contracts, we don't need a lawyer". Everyone forgets that it's a business just like anything else. Some idiots get screwed and some make it big. Those that make it big usually have at least SOME kind of head on their shoulders.

    4. Re:employees getting "fucked over" by Anonymous Coward · · Score: 0

      Hmm, how about rock stars = CEO's etc?

      I'll refrain from comments about finding a job you love and never working another day (it's 2am and I'm catching up on slashdot from another 80 hour week =P), so if you're a working musician because either you enjoy it, or because it pays you enough for what you want to do at this moment in time.

      If you don't like working for The Man, then you've got to be The Man (feel free to exchange Man for Woman). And if you're that musician who's humping his own gear from show to show and still rocking out, good on you. You da Man :)

      In all seriousness, yeah, record companies make a shitload of money of their artists. MS makes a shitload off their programmers. Apple makes a shitload off their designers. If any of those artists, programmers or designers want to go it alone, no-one can stop them. You won't get the assisstance of a company (they are helping you so they can make money, it's this crazy concept called capitalism).

      When it comes down to it, what do you want from life? Do you need a million dollar lifestyle? How is a SUV better than a 3 year old Volvo? Why spend $1000 on a home entertainment system when you could just go to the movies 200 times?

    5. Re:employees getting "fucked over" by Reziac · · Score: 1

      A guy I know produces occasional CDs for local bands, and anyway one of his clients just came back from a short club tour raving over how they sold 25 CDs to audiences at $10 apiece, and managed to pay for their tour that way.

      Goes to show how "rich" they're getting, too :/

      --
      ~REZ~ #43301. Who'd fake being me anyway?
  78. Interestingly enough-Economics still exist. by Anonymous Coward · · Score: 0

    And why does the above rate an interesting? You do more of the work, you get more of the money. You do less of the work, you get less of the money. That's been true since economic systems begain. Why would anyone expect otherwise?

  79. they probably do the math by Scudsucker · · Score: 1

    Say 50 people download a bands album without paying for it, and their take home royalty is 5 cents per album. Thats $2.50 in profits gone. One person out of that 50 buys a concert ticket for $35; even if the band only gets 5 bucks from that ticket sale, they've doubled their money vs album sales.

  80. Re:0/0 != 100%, it is undefined, dumbass by platipusrc · · Score: 1, Insightful

    0/0 is not undefined. It is undetermined. 0/0==. The reason it is different than with a non-zero number in the numerator is because division adheres to denominator * result = numerator. It is true for any number with 0/0 and true with no numbers for anything else divided by zero.

    Therefore, 0/0 == 100% is true!

    (maybe you should take a math class :))

    --
    And the muscular cyborg German dudes dance with sexy French Canadians
  81. Artists are getting exactly what they deserve. by 0x0d0a · · Score: 5, Insightful

    If Joe Sixpack asks for $47k pay for his job, medical benefits, and the ability to leave with two weeks notice, he can't then turn right around and whine that he isn't making $55k and identical bennies. He got what he asked for.

    If I'm Jimmy Drummaster, an aspiring upcoming musician, and I don't feel that the promotion and management services provided are worth what current sellers are asking, I'm more than free to set up my own website and sell MP3s. Hell, I'd be selling to a larger market segment than iTunes is (far more people can play MP3s than use Macs).

    I'm not trying to be deliberately callous -- I'm simply saying that if musicians don't like iTunes, they can choose a different route. (Of course, there are those that have sold contracts to put out n albums -- stupid sort of deal IMHO, but such is life -- and they'll have to put out n more CDs before they go freelance. And again, they got what they asked for.)

    Nobody is shedding tears for *other* classes of workers that don't get better deals than they asked for -- computer consultants or plumbers or proctologists aren't getting any love.

    My personal guess is that the people writing the article don't care about the musician *either* and just has some vague ideas that enough undirected protest will somehow result in him getting free music of the caliber he's currently enjoying.

    1. Re:Artists are getting exactly what they deserve. by tuba_dude · · Score: 4, Interesting
      I don't think that's the issue. iTunes is paying better than most other deals, and so I don't think anyone is complaining about that. I think that the reason artists choose the indie "I hope I can make it without any help" route or the big5(?) "Hey, they'll help me get started. I hope I sell enough copes to keep up with their quota" is because they either don't know about alternative choices, are afriad of flying completely solo (so to speak), or they get pressured into contracts by smooth-talking salesmen. Sorry for the run on, but does it make sense?

      Stupid analogy time: A smooth-talking salesman could probably talk me into buying whatever kind of car he wants me to buy, because I don't know enough about the technology and the industry. The recording industry is an enigmatic industry to outsiders, and if an artist doesn't have previous expereince or friends on the inside, he must improvise everything. Only the smart, lucky or connected artists can come out on top.

      --
      "The government of the United States is not, in any sense, founded on the Christian religion."
    2. Re:Artists are getting exactly what they deserve. by chamenos · · Score: 2, Insightful

      "My personal guess is that the people writing the article don't care about the musician *either* and just has some vague ideas that enough undirected protest will somehow result in him getting free music of the caliber he's currently enjoying."

      that's the most insightful post i've read all day. the large majority of pro-file-sharing and anti-RIAA /.ers are just leeches who want free shit. the whole pity-the-poor-artistes rhetoric is usually just an unconscious or semi-conscious attempt by said leeches to justify their actions to themselves.

    3. Re:Artists are getting exactly what they deserve. by geekee · · Score: 1

      indie is NOT "I hope I can make it without any help". indie is using a smaller label (which may be a part of the RIAA). Unsigned is "I hope I can make it without any help".

      --
      Vote for Pedro
    4. Re:Artists are getting exactly what they deserve. by JonnyCalcutta · · Score: 1
      the large majority of pro-file-sharing and anti-RIAA /.ers are just leeches who want free shit. the whole pity-the-poor-artistes rhetoric is usually just an unconscious or semi-conscious attempt by said leeches to justify their actions to themselves.

      That might be true but there are plenty of us who knew of the bad practices of the record industry long before file sharing came along - who knew the record companies were the leeches on society. p2p file sharing has simply proved that they have no intention of changing and will infact use every dirty trick they can to retain their very unbalanced status quo.

    5. Re:Artists are getting exactly what they deserve. by TyrranzzX · · Score: 2, Insightful

      f I'm Jimmy Drummaster, an aspiring upcoming musician, and I don't feel that the promotion and management services provided are worth what current sellers are asking, I'm more than free to set up my own website and sell MP3s. Hell, I'd be selling to a larger market segment than iTunes is (far more people can play MP3s than use Macs).

      Actually, it works a bit more like this;

      Jimmy drummaster and his band is offered a "big deal" from a record label. They then ask him and his band sign off all the rights to their music to the record label for measly quantity of money, or they walk and goto another hopeful band. If jimmy and his band doesn't like it, they can stuff it becuase the record company has the rights to his music and he has no right to distribute it anymore. He makes his money by touring; letting the music company sell his music is just promotion.

      How it should work is that jimmy makes the music, the company promotes it and they cut the profits. If the label isn't willing to take the risk, they can stuff it.

    6. Re:Artists are getting exactly what they deserve. by dirk · · Score: 2, Insightful

      Jimmy drummaster and his band is offered a "big deal" from a record label. They then ask him and his band sign off all the rights to their music to the record label for measly quantity of money, or they walk and goto another hopeful band. If jimmy and his band doesn't like it, they can stuff it becuase the record company has the rights to his music and he has no right to distribute it anymore. He makes his money by touring; letting the music company sell his music is just promotion.

      How it should work is that jimmy makes the music, the company promotes it and they cut the profits. If the label isn't willing to take the risk, they can stuff it.


      No one is sayign that isn't how it should work, but the reason it works the way it does now is that the artists agree to it. They sign an agreement that let's the record companies take most of the profits and keep control of their music, and then complain later about an agreeement they willingly signed. If they don;t want to agree to the terms of the deal, then they shouldn't sign with a major label. I think Ani Difranco (one of the few real indie artists around) said it best "and don't tell me what they did to you/as though you had no choice/tell me, isn't that your picture?/isn't that your voice?" You give up all rights to complain about the deal when you agree that the deal is fair and sign off on it.

      --

      "Information wants to be expensive" - Stewart Brand, the same guy who said "Information wants to be free"
    7. Re:Artists are getting exactly what they deserve. by aronc · · Score: 1

      You give up all rights to complain about the deal when you agree that the deal is fair and sign off on it.


      This is true, however don't forget how nasty the lables can be. Even if the A&R man just scribbles 'Lets make a deal' on a napkin and you sign it the big iron of the music industry has turned that into a binding contract that prevents you from even talking to another label. You take their contract or no contract at all. Even if you discussed no particulars or stipulations beforehand.

      --

      jello.
      aka aron.
    8. Re:Artists are getting exactly what they deserve. by Anonymous Coward · · Score: 0

      And that is as it should be.

      Think of in a more tangible sense: Would you agree to sell me your car, before I told you how much I was willing to give you for it? Even in casual conversation with long term friends I wouldn't agree to something like that.

    9. Re:Artists are getting exactly what they deserve. by mkldev · · Score: 2, Interesting
      See, that's the thing. This is only a problem for artists because they generally have zero knowledge of the legal systemâ"less than even an average personâ"and because they're scared highâ"school-aged children who don't want to be sued.

      The reality of the matter is that letters of intent are binding if and only if all material terms of the agreement were worked out prior to the signing of the letter of intent. There isn't a state in the U.S. where "let's make a deal" written on a napkin would hold up in court, and the record companies know this.

      The handful that engage in such unscrupulous actions do so under the assumption that the majority of people who they tak to aren't smart enough to realize that such a letter of intent isn't worth the price of the napkin it's written on, and are so desperate to sign with someone that they'll take a bad deal just to get signed.

      Quite frankly, it's just social darwinismâ"the more intelligent preying upon the unbelievably stupid. The band could simply ignore the letter of intent, since it isn't binding because material terms were not agreed upon prior to its signing. The record company knows they'd be laughed out of court, so if they threatened to sue the band, the problems could be solved by hiring a lawyer to send the record company a simple cease & desist letter.

      And before you say, "Oh, but it -is- legally binding", go look up the law yourself.

      --
      120 character sigs suck. Make it 250.
    10. Re:Artists are getting exactly what they deserve. by jedidiah · · Score: 1

      Joe Sixpack doesn't have to deal with a cartel if he wants to ever work in his chosen profession. This significantly changes the situation.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    11. Re:Artists are getting exactly what they deserve. by geekoid · · Score: 1

      "Stupid analogy time: A smooth-talking salesman could probably talk me into buying whatever kind of car he wants me to buy, because I don't know enough about the technology and the industry."

      Then you are a fool for not researching ot first.
      If you are going to make an expensive purchase, then you should research your options.

      If you are going to sign a contract that will effect your career, then you should research you options.

      That said, I don't think this musicians are unaware of there choices. I also noticed it bothers older artists a lot more then new artists. In general.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    12. Re:Artists are getting exactly what they deserve. by tuba_dude · · Score: 1

      Exactly right. People see something big, like their entry into the world of music recording, and completely ignore common sense.

      --
      "The government of the United States is not, in any sense, founded on the Christian religion."
    13. Re:Artists are getting exactly what they deserve. by segfault_0 · · Score: 1

      Too bad the recording studios wont give you the rights to distribute anything. If the consumer could actually manipulate these things as is done in normal situations, meaning the ones in which a psuedo-monopoly hasnt been setup, perhaps there would be hope for this industry to work with their technological counterparts.

      Sadly the RIAA decided who sells what and when and how - who gets what - and its our job in their view to just suck it up and take it..

      You do have a good point though, in that if we could find some way to bring artists out without the RIAA machine behind them and get them to the target audiences we could free ourselves of these control freaks.

      Anyway, no drug, not even alcohol, causes the fundamental ills of society. If we're looking for the source of our troubles, we shouldn't test people for drugs, we should test them for stupidity, ignorance, greed and love of power. -
      P. J. O'Rourke

      --

      I was crazy back when being crazy really meant something. (Charles Manson)
    14. Re:Artists are getting exactly what they deserve. by SuperPjotr · · Score: 1

      that's the most insightful post i've read all day. the large majority of pro-file-sharing and anti-RIAA /.ers are just leeches who want free shit. the whole pity-the-poor-artistes rhetoric is usually just an unconscious or semi-conscious attempt by said leeches to justify their actions to themselves. I keep seeing this argument on /. a lot and I simply feel that is not the case. I'll grant that things like Napster were all about the kiddies getting their fr33 m3t4llik4 MP3z, but I've found P2P to be an amazing experience, and quite the contrary of leeches "trying to get free shit". Most of the guys I talk to on Soulseek are huge music fans and buy legitimate music as well as downloading a lot of material. A lot of the stuff being shared is rare as hell. Hey, I would buy every Sun Ra LP if I could, but with 200+ releases and most of them unreissued, out of print and fetching hundreds of dollars a pop on eBay, I'm glad someone's offering this stuff for me to download. I've both bought plenty of stuff I have downloaded legitimately as well, as have many people I know. Since I started buying music in my late teens, I've probably spent enough on LEGITIMATE recordings to be driving a new 7-series BMW right now. Most serious peer-to-peer heads are in a similar boat. The kneejerk "you are just leeches" thing is getting a little old. It's the same crap that happened when home taping came along. Did it kill music? NO. Sheesh people, get over it already.

    15. Re:Artists are getting exactly what they deserve. by Reziac · · Score: 1

      But I expect that if an artist says "that's just a letter of intent, it's not binding", the label says "so back out, and we'll sue your ass into oblivion and get you blacklisted so you'll never get another contract offer". And the average artist (being no more legal-savvy than most folk) finds that so intimidating that they are as good as bound on the spot. After all, the alternative is the prospect (real or not) of defending yourself against an expensive civil suit.

      Darwinism of a sort, yes, but not so much the intelligent preying on the stupid, as the manipulators preying on the emotionally needy; and until recently, a dire lack of other channels for getting an average band's music heard/sold beyond the local bar circuit.

      It does remind one of Vinnie and Guido's protection racket, tho. "You wanna do business in our neighbourhood? Then we own your kneecaps."

      --
      ~REZ~ #43301. Who'd fake being me anyway?
  82. Is there a proctologist in the house? by Anonymous Coward · · Score: 0

    " I'm sick of people saying that artists get shit for their work. Have any of you watched MTV Cribs? Have you seen the lifestyle these people live in? They have unlimited resources. As long as they're putting money in the bank, they could be set for life. There are people who do better and greater things for society and get paid much less. Perhaps, instead of talking about how little the artists get, we should be talking about how much they get..."

    Is this suppose to be insightful? Try this 'I'm sick of people saying that Americans get shit for their work Have any of you watched Lifestyles of the Rich and Famous? Have you seen the lifestyles these people live in? They have unlimited resources. As long as they're putting money in the bank, they could be set for life. There are Frenchmen who do better and greater things for society and get paid much less. Perhaps, instead of talking about how little Americans get, we should be talking about how much they get...'

    And yes you do come across that clueless.

  83. This is *several* times better... by leviramsey · · Score: 4, Interesting

    ...than current arrangements.

    What does an artist get from an album? 50 cents, tops. That's for approximately one hour of content which wholesales for about $10.00 and retails for anything from $10 to $18.

    Here, the artist gets paid $0.12 for approximately 4 minutes of content which wholesales for $0.60 and retails for $1.00.

    If an artist sells an hour of content online, he gets $1.80, which is 3.6 times what he gets from the CD. Looking at it from wholesale to wholesale, if content with a total wholesale value of $10.00 is sold, the artist gets $2.00, which is 4 times what he was getting previously. If you go for $18.00 at retail, the artist is now getting $2.16. This is about 4 times better than what the artists were getting before.

    1. Re:This is *several* times better... by Cyno · · Score: 1

      Those are all excellent excuses, but didn't the artist create the songs? There would be no CDs to sell without them. Anyone could write some cgi script on their linux box and sell their music. Not anyone can make good music.

    2. Re:This is *several* times better... by leviramsey · · Score: 1

      I'm not making excuses. I am not saying that this is a perfect system. I am merely saying that this is a far better (or far less bad, if you prefer) system than the previous systems.

    3. Re:This is *several* times better... by Cyno · · Score: 1

      The previous system or the previous technology or the previous leadership or... ?

      There are so many factors that govern this stuff, it bogles. I just hope they do the right things and maintain our level of prosperity. Because what have we got without that?

  84. Re: I know someone... by justMichael · · Score: 1

    Who to this day gets "mailbox money" from a hit song she wrote in the '80's.

    Klymaxx

  85. Who cares???? by Cyclone66 · · Score: 2, Interesting

    I really don't get it. You guys always bitch about how the artists are getting ripped off, after all, it's there work that makes the record companies the cash, but no one seems to fight for your own wages. You do all the work at your company, be it programming, hardware design or anything else. YOU do it, and someone else is making millions, but fair is fair right? Same should go for the music industry!

  86. Cost of the Album by midifarm · · Score: 1

    If you looked at what the average album costs on iTunes, it only runs $10! Which is a HUGE savings compared to Sam Goody or Tower. They're (the artists) getting a sweet deal out of this. I would think that a band such as Aerosmith or U2 could break away from their labels and release the whole thing to iTunes and reap the profits themselves. Offer an exclusive deal for hard copies if so desired by the consumer, but I think this would work for many established artists. Regardless of anyone's hatred for the record labels they do take quite a risk in the promotion and recording of bands. How many one hit wonders are there out there? How many guys do you know that have a "record deal" and nothing came of it? All of those things cost a significant amount of money to produce. In the end I stay away from downloading pirated songs because even though I know the artist gets maybe $0.03 per disc at least it's something for their efforts that I appreciate enough to buy. Cheers!

    1. Re:Cost of the Album by Martin+Blank · · Score: 1

      There have been some recent efforts in the California Legislature to overturn the music industry's exemption to the Seven Year Rule, which allows for a maximum length of seven years for personal service contracts. The exemption is for the music industry, and there are serious considerations on whether the exemption, enacted around 1987, should be removed. This will allow the artists more flexibility in negotiating, since they won't be tied to one label for two decades to finish out a deal for six albums. With new technologies, this may allow for a change to the structure of the music industry as groups make it under a label, and then renegotiate their contracts or, failing that, carry enough momentum forward to allow them to form independent labels to recoup more of the money involved in sales.

      --
      You can never go home again... but I guess you can shop there.
  87. Ripoff! It's as worse as CDs. by oohp · · Score: 2, Informative

    This is as worse as CD distribution by the record labels. Apple should've striked deals directly with the artists. Hm, if the artists got say .60, then they'd have to sell 5 times as little as they sell now to get the same amount of money. This is bloody ripoff.

    On the other hand it also costs as much as regular CDs. You get like ~10-15 songs on a regular CD, which is around $15. If you download 15 songs from Apple, you also end up spending $15, as much as you spent for the CD. Maybe a little cheaper because a CD doesn't always have 15 songs on it. But still.

    Ripoff! First, the artists are ripped off, then you, the consumer. I mean it's somehow fair for Apple to get .40 out of it, but the record labels and the publisher? Give me a break!

    The record labels are the media intrustry's dinosaurs. And Dinosaurs will die.

    1. Re:Ripoff! It's as worse as CDs. by Tazzy531 · · Score: 1

      Apple can't strike a deal directly with the artists. First of all, in almost all circumstances, the artists do not own the copyrights to the song, the labels do.

      Secondly, Apple isn't there to provide a cheaper alternative to buying an album, they are providing and alternative way to buy a single. I mean if you look at it this way: there is one song that you really like on this album, would you spend $15 just to get that one song or 99 cents to get that one song?

      --


      _______________________________
      "I'm not Conceited...I'm just a realist..."
  88. Re: heh, I got it... by justMichael · · Score: 1

    I think, anyway that guy has sold well over 5M discs. I think he's makin money.

    oh yeah, thanks for the pr0n ;)

  89. I can't quote it by squarefish · · Score: 3, Interesting

    but I've heard that apple charges 34 cent per song and their agreement leaves the rest of the division and responsibility up to the label.

    another slice of info that was rejected by /.'s editors:
    I received an email from bloodshot records with the following- 'As the music business heads off into uncharted territory we are feeling the effects first hand as stores close, media consolidates and users have no qualms about stealing music from the web. After a fun business trip to Apple HQ in California, we have decided to cast our lot with Appleâ(TM)s new iTunes store. By the end of the summer (hopefully) youâ(TM)ll be able to download individual tracks or albums from nearly every Bloodshot artist (including comps). Weâ(TM)ll let you know when our catalog is ready to go.'

    --
    Creationists are a lot like zombies. Slow, but powerful and numerous. And they all want to eat our brains.
  90. Re:0/0 != 100%, it is undefined, dumbass by Anonymous Coward · · Score: 0

    To get from "0*100% = 0" to "100% = 0/0" you need to divide both sides by 0, which is not allowed.

    So "0/0 = 100%" does not follow from your reasoning.

    And if it were true, then 1 = 0/0 = 2,
    so 1 = 2,
    and the universe would begin to crack.

  91. Re:Royalties -- You Are Close by Not+The+Real+Me · · Score: 4, Informative

    In the book "All You Need To Know About The Music Business" by Donald s. Passman, an attorney in the music industry, royalties are extensively discussed.

    SLRP: suggested retail list price minus 20% for packaging. ex: CD retails at $14.99, minus 20% for the packaging ($3.00), SLRP is $11.99.

    New artists signing with an independent label get between 9% to 13% of the SLRP.

    New artists signing with a major label get 12% to 14% of the SLRP

    Midlevel artists get 15% to 16% of the SLRP

    Superstars get 18% to 20%+ of the SLRP.

  92. 12.5% is what a book author gets too .. by chris_sawtell · · Score: 3, Interesting

    And that's why it's almost impossible to buy a decent book these days, unless the author happens to be a J.K. Rowling or such.

    The whole bit of authoring books, particularly technical ones, is such a gamble for everybody concerned that authors churn them out as quick as humanly possible these days and doesn't it show.

    It's just not worth spending the time to do it properly.

  93. The mechanical is listed by MushMouth · · Score: 1

    The Mechanical was $0.08/song and was listed in that pie chart as a separate item. The mechaincal is paid whether or not the song recoups.

  94. 0/0 is approaching 0 by Anonymous Coward · · Score: 0

    Take a calculus class.

    Short refresher:

    0/0.01 = 0
    0/0.000000000000000000000000001 = 0
    0.0.(infinite zeroes)1 = 0

    So, 0/0 is approaching 0, and for all useful measures, is 0.

    1. Re:0/0 is approaching 0 by Anonymous Coward · · Score: 0
      Try taking a calculus class and paying attention.

      Calculus is effectively dividing zero by zero algebraically and getting the right answer. If you always got zero, calculus would be a pretty short class.

    2. Re:0/0 is approaching 0 by AndrewRUK · · Score: 1

      not quite.
      for any non-zero value of x, both
      0/x = 0
      and
      x/0 = infinity (ok, technically, x/y -> infinity as y -> 0)
      are true.
      But when x=0, which do you use? The standard answer is to call 0/0 undefined.

  95. why don't they sell their own online? by polished+look+2 · · Score: 2, Interesting

    What is preventing some rock band (or whatever) from selling their own songs off of their own website? That is, just go direct to the audience and they'll receive most of the profits.

    1. Re:why don't they sell their own online? by Second_Derivative · · Score: 1

      they dont own the copyright

    2. Re:why don't they sell their own online? by Tazzy531 · · Score: 1

      Yup...it's a screwed up world when the artist do not own their own songs. By signing the contract, they give up this right in exchange for an advance on their album sales, radio play time, and marketting.

      If they don't do this, there is no possible way they can get anything out there.

      --


      _______________________________
      "I'm not Conceited...I'm just a realist..."
  96. Completely Incorrect - One example here by Anonymous Coward · · Score: 1, Informative

    Beyond the fact that artists shoulder the costs you speak of because the record companies charge them back to the artist your assertion that production and distribution need be done by the label for an artist to be known is absurd. You'll note one of the richest men in the nation is an artist who needed no such label to become famous rather he recorded his own CDs, countering your point that CDs wouldn't exist, and then did his own promotion and sales of those CDs. Now he has his own clothing line and his son is excelling in the music industry. Who is this man you ask? Why it's none other than MasterP. MasterP couldn't get airplay for his songs because they're obscene so he sold his own tapes. Don't believe me? Trust Forbes then: http://www.fortune.com/fortune/40under40/snapshot/ 0,15793,11,00.html Note his progression up the list as well.

    1. Re:Completely Incorrect - One example here by DavidinAla · · Score: 1

      So if you can find one or two examples of something working, it's universal, huh? You are either terribly naive or willfully blind about this issue. Please learn something about financing a new business (which a band is) before you talkin about something you're terribly ignorant about.

  97. Oh, we *could* win, but we won't. . by alizard · · Score: 1
    If a professionally organized/managed PAC composed of a large part of the high-tech community had been put together a year or so ago, we'd be seriously discussing the campaign to repeal the DMCA right now.

    Professional because nobody who has the competence and the skills and the background required to put this together works for free, and we really can't expect people to work full-time and overtime for no money indefinitely. We've hit the wall with volunteer, part-time "geek activism".

    The price of freedom now is the willingness to pay the people capable of doing political activism in a way that will make politicians do what WE want them to do.

    Even in the current FUBARed state of the economy, we could still raise enough in $5/20/100 contributions to buy most of the elected officials Hollywood thinks it 0wNz and defeat the majority of politicians honest enough to stay bought.

    The AARP and NRA have done a hell of a lot for their members with organizations of comparable size to the population of serious computer users and lower per-capita income. So if we had a real PAC, we'd be carpet-bombing Hollywood and "rip, mix, and burn" would be a campaign slogan used by any politician who wants to stay in office.

    Well, the chance to do this cheaply has come and gone. If somebody or a small group had come forward with $1M a year ago, the Federal and state-level paperwork required to raise and spend money for candidates would have been done a few months ago and those of us (hopefully, everyone on slashdot and a whole lot of people outside the community who want to "rip, mix, and burn" as well) on the mailing list would be sending the PAC our $5/10/100 contributions. The $1M just covers the professional staff and the infrastructure, the real money would come from us, and probably from any consumer electronics vendor who's had it with being pushed around by Hollywood. And the volunteer hours required to multiply the efforts of the full-time core staff would come from us... which is fair enough.

    I'm fairly sure there would be some corporate money, there are a lot of people waiting for someone to answer the question:
    "Where do you want to go today?"
    "To war! Hollywood is that way, what are we waiting for?"

    The PAC would be aggregating our contributions into checks big enough to make politicians sit up and take notice, and buying enough media time to make the mass media treat us with respect.

    Well, nobody with the megabuck came across. Now, any filing date that hasn't come and gone is going to be horrendously expensive to pay people to prepare the paperwork and possibly, buy enough political influence to make late filings possible.

    Can it be done at any price in time to affect the 2004 election? I really don't know. My guess is that the price of entry has gone up to $2-5M.

    The odds that anyone would be willing to do this now are slim enough that it's more rational to figure out how to afford to get out of the US than to check into 51 filing deadlines and how tightly they are nailed down and which ones we could afford to miss.

    Anyone who can afford to do this isn't going to contribute to any "political effort" that isn't tax-deductible. When they find out that the laws have changed to the point that any research worth doing in consumer tech has to be outsourced offshore because the research can't legally be done here, it's simply going to be too late.

    But what the hell, it's cheaper to pay $1/hour to Indian and Chinese programmers and engineers and surely, some way can be come up with to dumb the tech down far enough so it can be sold in the US, right? Who cares if the R&D and production jobs are all offshore if the people who made their money off the high-tech boom and managed to keep it can continue to profit?

    The vendor community is still doing "deer in the headlights" thing, hypnotized with Hollywood smoke and mirrors into believing that Real Soon Now, if the vendor commmunty gives

  98. Intelligent parasites by alizard · · Score: 1
    An intelligent parasite knows when to slow before it kills its host. Hollywood is using its political influence to take over the development of high tech in the US and in as much of the world as it can get its tentacles into.

    These are the same people who said that the VCR will kill the movie industry and who spent years trying to figure out how to keep the RIAA website running.

    In other words, they are clueless fuckheads who make the '90s wave of vulture capitalists look like geniuses, and any high-tech economy they get to run, they will utterly destroy. They can't even figure out how to keep their own products selling, what makes you think they can pick winners in high-tech?

    Hopefully, in the unlikely event that you work in high tech (as a janitor, maybe?), your job will go down with it.

    You obviously like the idea of living in an economy where high-tech is something that one buys in shrink-wrapped boxes developed in India and China and made in Taiwan.

    By the time you figure out how bad this is going to be, you'll be back with your own mommy and daddy... if they can afford to keep you. Of course, if you're as obnoxious in person as you are here, they might enjoy the thought of you eating out of garbage cans and sleeping in dumpsters.

  99. 1 = 2? by Anonymous Coward · · Score: 1, Funny

    x = 1
    y = 1

    x = y
    x^2 = xy
    x^2 - y^2 = xy - y^2
    (x + y)(x - y) = y(x - y)
    x + y = y
    2 = 1

    Woops! Maybe you should just relax a bit.

    Now, if you want to get really picky.....some branches of mathemathics do not consider the statement 1 = 2 to be the same as 2 = 1. Just because you live in a world limited by "Principia Mathematica" does not mean that we all do.

    Eh, maybe I should relax a bit too...

  100. So what by Anonymous Coward · · Score: 2, Insightful

    What makes the artist's time so much more valuable than everyone else's? A record company surely must have studio workers, a marketing department, accountants, systems people, administration, human resources, and all the other conveniences of a modern corporation.

    A farmer doesn't get 50% of every can of corn sold. Maybe that doesn't seem fair, but he's not the only person involved. Someone has to package it, someone has to ship it, someone has to provide the shelf space for it, and someone has to ring it up at the checkout. And, of course, there are other costs. The supermarket and the distributor have to establish a relationship, coordinate shipments with demand, and so forth. All of this takes work.

    1. Re:So what by threadsafe_r · · Score: 1

      Your right but a farmer doesn't have the option of distributing his/her end product electronically (though digital "produce" exchanges are evolving and driving effeciencies into that process)...

      For these types of products (Music/Software/etc.) the busniness model is ineffecient and should fork as we see occuring (iTunes)... let the folks who want to purchase CDs pay for the overhead of packaging/shipping/shelf space/etc... just my two cents.
  101. And yet by ElectricPoppy · · Score: 0

    most of the artists are rich? So what's the problem?

  102. Re:0/0 != 100%, it is undefined, dumbass by Anonymous Coward · · Score: 0

    Depends on how you get to 0, Basic differential.

    x^2 (lim x->0)
    --- = x (lim x->0) = 0
    x

    maybe basic maths (not plural - we in the UK can do more than one sum), but basic calculus defines the anwer in a few specific cases (most known is that photons have mass, but no rest mass, since

    m=m0(gamma) and gamma=1/0 at speed of light.

    Ta.

  103. Bullshit by fearlessrogue · · Score: 1

    1. x^2 - y^2 = xy - y^2 2. (x + y)(x - y) = y(x - y) 1 is not the same as 2. 2 is equal to x^2+y^2+2xy =xy - y^2 not x^2 - y^2 = xy - y^2 your algebra is weak

    --

    Everything Zen;
    Everything Zen;
    I don't think so!!!
    1. Re:Bullshit by Anonymous Coward · · Score: 0

      You're wrong. (x+y)(x-y) does equal x^2-y^2.

      Step 5 (where both sides are divided by x-y) is the problem. x-y equals 0, and dividing by 0 is bad.

      Looks like it's your algebra that sucks.

  104. not the same thing.... by Vellmont · · Score: 2, Interesting

    Unless they're employed by RedHat or IBM or similar, linux coders aren't expected to be paid. The software is also free, so I don't think anyone is too upset missing out on 12% of $0.

    As far as the rest of your comparison, most commercial software is produced by large teams of people, built up from libraries written by even more people, etc. Music is produced by the singer and/or band and a producer. Yeah, there are sound engineers and what not, but I'd argue that the band and maybe the producer are the main "artists" of the music. The point being that it takes a lot fewer people to create commercial music than it does to create (most) commercial software. Obviously for software there are exceptions to this, and many of these programmers have become wildly successfull.

    --
    AccountKiller
  105. One sentence. by ihatesco · · Score: 2, Insightful

    Artists still screwed.

    + + + +
    Rationale:

    - the companies are not producing the music, the
    artists do. Without the artists, companies are
    nothing.
    - companies have a role only of intermediators

    + + + +
    If I was to release a song to the world, and the company was to tell me "for your promotion we get 85 cents over your dollar" I would tell them, "screw you and your promotion".

    --
    "I am slashbot, hear me roar!"
  106. Hate to disappoint you. . . by alizard · · Score: 1
    But I'm not going to flame you.

    You missed something obvious.

    Internet radio and P2P downloads are promotion.

    Eminem's latest album was "accidentally" prereleased to P2P about a month in advance. (Personally, I suspect that the guy who uploaded it was named Marshall Mathers, taking a page out of the Radiohead playbook and figuring it would make him lots of money and piss off his label - while I'm not that fond of his music, looks like win-win to me) The record supported by lots of Internet-created buzz went straight to #1.

    Google on:
    Radiohead "Internet promotion".

    Lots of bands doing this now, even a few major label bands officially or unofficially.

    Why?

    Outside RIAA major label executive fantasies, nobody buys an album on without hearing something off it first.

    That's why they pay radio stations to play their musicians.

    The Internet works just as well for this as playing it on FM radio. The difference being that everybody has access to the Net, and the music industry doesn't like the idea that just anybody has a chance to get to the ears of millions of people.

    So they bought politicians to get digital file swapping on the Net treated as a crime while trading cassette tapes made off the label is legal.

    Smart bands and musicians with major label backing are bypassing their bosses and using the Internet to unofficially leverage their existing publicity channels... using the Net to create buzz that'll cause Net-connected people to tell their unwired friends about it. Multiply by millions and one has another platinum record.

    Madonna is whining about it instead and is wondering what the fuck happened to her career. Must suck to be as young as she is and already obsolete and irrelevant.

    Smart indie bands are taking advantage of the Net for promotion, selling records without record stores, and hopefully, selling through iTunes soon.

    Hopefully, the CDbaby deal with iTunes will go through and anybody will be able to get onto it, I work with an indie musician now and we don't mind at all getting 12 cents + the 8 cent mechanical royalties per download out of a dollar, we don't have to pay for the bandwidth, we don't have to worry about getting a merchant credit card account, and any chargebacks are on Apple's dime. What's not to like?

    Of course, we have to do our own promotion to get people to buy it, but that's the tradeoff for not going with a major label. The upside is being able to do one's own music, not what the label dictates, and keeping ALL the profits, not the "artists" share after Hollywood-style accounting and paying off a massive loan that's spent not by our, but at the record company's discretion.

    Even if she only sells 10% as much music as she would with the help of a major label, she still makes more money and hopefully, better music.

    The only people who are getting shot in the foot by P2P are the major label people who are afraid the can't compete on the level playing field they call the Internet, with the collateral damage being the record stores who depend on the major labels for product.

    The shape of a new record industry is beginning to take form. If the laws bought by the *AA organizations kill it here, this means that the new industry will happen someplace else and we'll be getting not only our tech, but all the cool new music from places Hollywood doesn't OwN the politicians of.

  107. There's a reason why... by inode_buddha · · Score: 1

    I bought CD's directly from various artists during their live performances for the last few years. In particular, I tend to choose the classical and jazz people, especially if they're totally independent. Goodness knows, that stuff is hard enough to find in the US. Basically, if it doesn't sell in some large chain-store, you're going to have to look for it. Of course, it seems that most of the really good stuff has to be mail-ordered from Europe.

    Fuckin' bean-counters. It's all their fault.

    --
    C|N>K
  108. Here's a micropayment for music files which works by Anonymous Coward · · Score: 0

    www.pico-pay.com Also, this short whitepaper discusses the use of Pico-Pay as a method for online music publishers to easily generate revenue. http://www.pico-pay.com/musicpaper.html

  109. you vill by GnarlyNome · · Score: 1

    be Back

    --
    Diplomacy is the art of saying "Nice doggie" until you can find a rock. Will Rogers
  110. Re:0/0 != 100%, it is undefined, dumbass by Anonymous Coward · · Score: 0

    Try learning some calculus... the whole point of differentiation is to divide zero by zero algebraically and get the right answer :-)

  111. Empower the artist? by node159 · · Score: 1

    What ever happened to talk of empowering the artist and all.

    I thought I was a synic, I guess I was wrong.

    --
    GPLv2: I want my rights, I want my phone call! DRM: What use is a phone call, if you are unable to speak?
  112. This headline has the wrong implication. by Anonymous Coward · · Score: 0

    How Labels And Artists Divvy Up Your Dollar Online

    Excuse me, YOUR? You traded that money for the music. That dollar ceast to be 'yours' when the deal was done. Sounds like your about to draw up a banner proclaiming 'the people's money'.

  113. Re:Suprised? No. by geekee · · Score: 1

    A record label can't just sign anyone. Why? Because there are 4 other major labels, as well as thousands of other labels that will provide better talent and put you out of business. The RIAA is NOT one company. They are in competition with one another. The only associate to promote common interests.

    --
    Vote for Pedro
  114. Instead, check out... by Anonymous Coward · · Score: 1, Interesting

    Steve Albini's much more thorough and interesting rant (from 1998), The Problem with Music

    Courtney Love was sticking up for artists rather loudly during her lawsuit with Vivendi Universal, but shut up quickly after receiving a nice, fat settlement.

    I wish I could say it surprised me.

  115. A dollar a turd by reddish · · Score: 1
    Nobody is shedding tears for *other* classes of workers that don't get better deals than they asked for -- computer consultants or plumbers or proctologists aren't getting any love

    ... And the proctologists, obviously, get the shittiest deal of them all.

  116. But you get 100% quality tunes. by Anonymous Coward · · Score: 0

    By only buying what you want, you get only the tunes you wanted, no filler.

    1. Re:But you get 100% quality tunes. by vegetablespork · · Score: 1

      Except that a goodly number of the "one good song" tracks can only be purchased by buying their entire album. So ITMS pays lip service to the idea of not having to buy filler, but still forces the purchase of an album for those who want to buy the one good track.

      --

      Call (206) 338-5780 COLLECT for information about a genuine BA, BS, MA, MS, MBA, or Ph.D.

    2. Re:But you get 100% quality tunes. by Anonymous Coward · · Score: 0

      Um, want to try "record labels will let them". I'd imagine that Apple would like to sell as many tunes as possible, after all, they are collecting a straight 40% commision of the top, so I'd guess the record label has restrictions on some albums (you wouldn't think the RIAA would not include get out or restrictive clauses in any online deal? Why the hell do you tihnk iTunes got updated so fast when people started streaming...)

  117. She gives herself too much credit. by Anonymous Coward · · Score: 0

    Another case of some really untalented person who thinks they are important. Notice how she has all the money in the world to be an artist 100% of the time, yet has managed about 30 songs worth total? It's not like we're talking Lennon/McCartney here.

  118. Another Break-down by t_allardyce · · Score: 1

    I think thats a pretty reasonable ratio for most so called artists. Anyone could do Britneys job really, although i dont know - getting into tantrums and swearing at your fans can get quite hard at times. Heres a break-down of another popular music delivery method, KaZaA:

    Label:0% (im helping to reduce their crack habit)
    Artist:0% (making art is enough of a reward)
    RIAA:0% (always good)
    KaZaA:0% (use KaZaA lite so these pirates get jack)
    Middle-man:0% (i like to cut out the middle-man)
    Publisher:0% (the dude im downloading from - they get no money, but they can have whatever im sharing)

    --
    This comment does not represent the views or opinions of the user.
  119. Why is it depressing? by Lawrence_Bird · · Score: 1

    View it as the artist being the sole owner of a company that makes and sells music. They are seeing a pretax bottom line of 8-12%, or roughly 6-9% aftertax. This is a typtical return for many mature industries.

  120. Is $9.99 a good deal from iTunes Music Store? by alangmead · · Score: 3, Insightful

    Compare the two products.

    Buying the album from iTunes gives you the ability to listen t the product immediately. Buying it from a music store requires a separate trip to the music store. Buying it from a mailorder or online retailer requires you to wait for delivery.

    When you buy an album from iTunes, you get it in a lossy compression format. With a CD, you get the music with a sample rate of 44.1 kHz @ 16 bit.

    When you buy an album with iTunes, you may get a small jpeg of the album cover as an ID3 tag. When you buy a CD, you get an actual physical copy of the image on glossy paper, and usually some interesting material in the liner notes.

    When you buy an album from iTunes, it is protected with its DRM technology. You are also tying yourself to playing the songs from iTunes, and are trusting that Apple will continue to develop iTunes and maintain their DRM infrastructure. When you buy a CD from a record store, you get a product with no DRM protection, is able to be played a many output devices of many styles, and has a long enough history to assume that new devices will be produced for a long time to come.

    An album bought from iTunes can be burned to CD. A CD bought from a store can be ripped to MP3. Mostly a wash, but burning the slightly lower fidelity iTunes AAC file to CD doesn't give it the quality of the CD. Ripping the CD to MP3 reduces the quality, but you still have the high quality original.

    When you buy an album from iTunes, you get a very helpful shopping experience. Searching for songs is faster, there are hypertextual jumps between song, artist, and album. On a particular page, it will show you top selling songs by that artist, and the "people who bought this song also bought..." list. Also, if you use the shopping cart, rather than the 1-click purchase, you get a "Recomendations based on albums in your cart." When you buy an album from a record store, you tend to some teenager who sparked up during his last break asking you "Can I help you find anything?" (to which my response is usually. "You still have them arranged alphabetically by artist, right? I think I'm all set.")

    Different people will put different weightings on each of these criteria. If you usually listen to music from only one or two Macintoshes, or an iPod, rarely use actual CDs, have audio equipment that doesn't give noticable differences between CD and MP3 quality, then iTunes is a good deal. If you frequently are on non-Macintosh machines, bounce around on more than three Macs when you listen to music (or for some other reason find the need to "authorize" a Mac with your DRM key prohibitive) and have a quality home entertainment system that can show the differences between a lossy rip and the original CD, then a close to 50% price reduction may not quite be enough for you.

    1. Re:Is $9.99 a good deal from iTunes Music Store? by midifarm · · Score: 1
      I'm not saying that this is the best thing in the world. Personally, I wish these computer idiots would've left music alone and stuck to mods and game sounds. For some reason, (probably the same reason why Windows dominates the industry), MP3 and other horribly compressed formats have become popular and accepted. If it were up to me all of it would be gone and you would get 24 bit 96kHz versions of everything.

      I've been in the professional end of the recording realm and am a gear snob. I can hear the differences, but the masses can't. It's yet another example of the dumbing down of society. I know this sounds all conspiracy theory and such, but it's true. Over half of the music listened to in the world is in a low-fi format. If you put together cassette, MP3, AAC, OGG, broadcast radio, etc. you have the majority of what people listen to and hear. Besides the format, people's equipment usually can't decipher the difference, hence the bass boost on everything.

      I would love it if every mastering job would be done in 24-bit as well as every recording. Let's face it, bandwidth shouldn't be an issue anymore. We all have cable and DSL. We all have tons of HD space. Why can't we all get together and say this isn't acceptable? Why can't "listening" be a class in college or high school? People need to learn what is a good recording and what isn't. Our senses are numbing with the exception of vision. More and more eye candy is flashed at us with very little of the other 4 sense being stimulated. If we're not too careful, we'll end up like moths to an electric zapper.

      But in the overall scheme of things I think that anything that gets an artist more available, gets them more money for their work and is fairly inexpensive is a good thing. Now someone needs to develop an encoding/compression scheme that rebuilds the audio file to it's original quality. I would be glad to hear any suggestions from any would be programmer with such a passion. I have done consulting on things like this before. Any takers?

  121. So, by reallocate · · Score: 1

    If this is all so terribly unfair to "artists", why do they keep on signing those contracts?

    --
    -- Slashdot: When Public Access TV Says "No"
    1. Re:So, by vegetablespork · · Score: 1

      Because the RIAA constituties an oligopoly. Duh.

      --

      Call (206) 338-5780 COLLECT for information about a genuine BA, BS, MA, MS, MBA, or Ph.D.

    2. Re:So, by reallocate · · Score: 1

      Gee, I thought the brave new world of the Internet was going to bring all kinds of new opportunities for new business models. Why haven't we seen some new business spring up that offer more advantageous terms to musicians? Could it be that most musicians don't make a profit, either for themselves ot the company that provides recording and marketing support?

      --
      -- Slashdot: When Public Access TV Says "No"
    3. Re:So, by vegetablespork · · Score: 1

      The audience on the Internet is peanuts compared to that available on the radio. And to get on the radio requires payola, and to get payola, the artist needs to be signed by an RIAA label.

      --

      Call (206) 338-5780 COLLECT for information about a genuine BA, BS, MA, MS, MBA, or Ph.D.

    4. Re:So, by reallocate · · Score: 1

      So, musicians are incapable of bribing people themselves?

      Listen, if musicians just wanted to play music and didn't suffer from the universal desire for wealth and success, they cold avoid signing contracts with any company. But, musicians are just people who want to be paid as much as possible for what they do. My sympathy for them is very, very limited. My empathy for adolescents try to portray filesharing as anything besides copyright theft is nonexistent.

      --
      -- Slashdot: When Public Access TV Says "No"
    5. Re:So, by Anonynnous+Coward · · Score: 1
      So, musicians are incapable of bribing people themselves?

      Sure, they're capable. But the RIAA labels are also capable of cutting off the gravy train for those radio stations that accept non-RIAA bribes.

  122. 12%? Farmers get 2%! Mineral Rights are even less. by kolombangara · · Score: 1

    Farmers get 2% of a loaf of bread from their wheat.
    Landowners selling timber get .5%
    Mineral Rights yeild 0.3%

    (All figures radically guessed)

    Ranchers are artists, the way they create exquisite bovine products from the ground up, some are works of astounding quality. Mmmm.

    Most cattlemen sell calves, at about 300 pounds ($1perpound), for the most efficient return, unless they have inherited rangeland, then they can get them to 500-600 pounds (avg75cents per lb) before heading to the feedlot before the final fattening occurs(Feedlot: Production Studio for cattle)

    The rancher gets the $300 and distributes it out to the bass player (vet) the auction barn (6%) The lead singer(Jose, the illegal immigrant) 20 bucks, Monsanto for the scientific genetical alteration copyright fees for the Monsanto(c) Bull Sperm(c) 33%.

    A rancher get's enough profit to survive another year on a diet of beef and Pepsi, drive a new Dodge and are forced to send their kids to public school.

    Could it be an artist is much like a diesel semi-truck? Sold to a broker as a tool to simply perform it's contactual duty to use their powers to generate as much profitable enterprise during it's functional lifespan as possible?

    Trucks are sold much like a slave, demand only an operator, mechanic and fuel. An artist is like a truck.

    12% indicates the watermark for how much screwing an artist is willing to take to be employed by the art system.

    I'll stick to selling my painted hub caps on the side of HWY 471 for 100% profitablity.

  123. 12% of REVENUE is extremely high! by CGameProgrammer · · Score: 1

    For an artist to make 12% of REVENUE is amazing! Even 12% of profits is very good, for CDs sold off the shelf. If you buy a $12 CD with 12 songs on it, it costs some money to create and burn the CD, it costs more money to package it, and it costs money to transport the CD to the retailer. However with downloaded content, the cost is almost zero (technically there's bandwidth and server maintenance but those are extremely small on a per-song basis). If the artist gets 12% of your dollar then that's excellent. What's better is if they got 50% of your dollar but that can only happen with independent artists.

    --
    ~CGameProgrammer( );
  124. Must be wholesale cost by jhines · · Score: 1

    If I'm a retailer, and I buy the CD wholesale for $x and then it is up to me to sell the CD for whatever I can.

    There is no obligation on the part of the retailer to give part of the profit or loss to the label or artist. I'm talking about a simple sale here, not a specific contract or other deal a store may have.

    What is interesting, is how this case shows that there are other options for distributing music, and the $$.

  125. changing the distribution channel changes nothing by gelfling · · Score: 2, Interesting

    As I've said for years - changing the distribution channel changes nothing for the artists. The system is rigged to not pay the artists.

  126. The Industry needs some... by cheekyal · · Score: 1

    To be fair, the record industry needs some of the money, otherwise who will pay for the artists to make the music in the first place? I do agree that more should go to the artist tho and less to the record company.

  127. Filesharing hurts the artist by Anonymous Coward · · Score: 0

    Since the artist gets a measly 12c on every $, revenue lost because of filesharing hurts the artist the most.

  128. Measely? by magic · · Score: 1
    If I received 12% on sales of products I've worked on, I'd be a rich man.


    -m

  129. Lousy deals and the death of the album. by MsGeek · · Score: 5, Interesting
    • the site takes .40,
    • the labels take .30 and
    • the labels take another 12 cents from the artist's share to recoup "production advances" and "independent promotion"

    This is completely and totally true. $0.12 is actually PROGRESS when compared to the status quo. Here's a better breakdown of the whole situation, courtesy record producer Steve Albini:
    http://www.negativland.com/albini.html

    As far as the whiners about "the death of the album" go, two things wrong with their premises:

    1. Up until the 1970s that's the way radio and records went. Top 40 Radio created a singles-oriented business, with the album as gravy. Even with great albums like Sgt. Pepper the Beatles made sure there was at least one good single on there if not a few. It was only with the popularity of Album Oriented Radio in the 1970s that things changed. The last gasp of the single 45rpm record as a mass consumer good was in the early 1980s.
    2. The primacy of the album has been basically stood on its head in the first decade of the 21st century. The average CD has you back in the '60s again, with albums that have one or two good songs and an ocean of filler. Some of the people complaining on that list are guilty of this crime against the music consumer.
    All that Steve Jobs is doing is levelling the playing field for the consumer. You have never been prevented from downloading a whole album on iTunes...in fact, you get an economic incentive to do so with the $9.99 bargain "album" rate. If a band makes a super-bitchen album, and people hear that the album is great as a whole, they will download the whole album rather than download the songs piecemeal without the advantage of the bulk rate.

    The fact of the matter is that the "album" died years ago. Deal with it.

    --
    Knowledge is power. Knowledge shared is power multiplied.
    1. Re:Lousy deals and the death of the album. by Zephaniah · · Score: 1

      Eb, I like to collect albums, I see them as a piece of art. Don't think any of the albums I've got are "full of filler", I guess it depends what you're listening to though...

    2. Re:Lousy deals and the death of the album. by Anonymous Coward · · Score: 0

      Well good for you, do you represent the majority of consumers?

    3. Re:Lousy deals and the death of the album. by Alphtoo · · Score: 1

      The "album" hasn't died, but most of the people making them now are pretty sick. There are some notable exceptions (Tom Petty comes to mind), but most of the crap being recorded these days isn't worth flushing down a toilet. The main reason I don't buy CDs anymore is that I am unemployed and just can't afford them. However, another thing that will prevent me from buying them is if they can't be played/copied on my computer. If I ever buy a "copy protected" CD, you can bet your ass the store will get it back and I will get a refund. And may God help the sonofabitch who tries to block my refund.

  130. Drat. by MsGeek · · Score: 1

    Drat, that "death of the album" thingy was on another thread. Sorry, folks. The two concepts just went together, like peanut butter and chocolate or Mountain Dew and a marathon gaming session.

    Will post a link to the article on the other thread.

    --
    Knowledge is power. Knowledge shared is power multiplied.
  131. payola by nexus987 · · Score: 1

    How much of this $1 goes to payola for Clear Channel..?

  132. IOW: They still f***ing the artists over. by mrBoB · · Score: 1

    12% may sound like a lot to some of y'all, but the thing that I will _NEVER_ understand is how "non-creative" entities make MORE on the artists art than the artist him/her-self. You will _NEVER_ convince me that the system is as it should be. Artists deserve the majority of the compensation, not the other way around. Period.

  133. How Labels And Artists Divvy Up MY Dollar Online? by Ride-My-Rocket · · Score: 1

    I don't think they do, insofar as the big labels are concerned. I've bought exactly 9 albums since 1998, all of which have been electronica from smaller labels (Hommega, Flying Rhino, Global Underground, etc). Why the hell should I pay for music that I can hear when I turn on any radio station during the morning drive to work and hear ad nauseum or, if I really like it, just snag from KaZaA for free? I'm certainly not going to shell out $10-$15 for the CD, especially when the profits from my sale are paying the salaries of middlemen, and not the compensating the artist.

  134. One word: "Recoupable" by Spittoon · · Score: 1

    You're forgetting that all those costs you mention are recoupable-- the artist has to pay the record company back for all of that, and repayment comes out of the artist's royalties before the artist ever sees one thin nickel.

    The label is like a bank. You have to pay the bank back. Granted in most cases when a band fails the label doesn't chase them around for the rest of their lives after the recoupable expenses lost. That's the label's risk-- loaning money to a losing prospect.

    1. Re:One word: "Recoupable" by DavidinAla · · Score: 1

      You're partly making my point. The cost of financing a new group (or one just becoming more professional, as opposed to a garage band) IS a very key function that the labels fulfill. And how many of those bands NEVER pay back the up-front money, simply because most groups never make it?

  135. you forgot the songwriters cut by MushMouth · · Score: 1

    The songwriter, often the artist gets $0.08/song for a mechanical royalty, which starts being paid from the first song sold.

  136. Steve Albini should sue Courtney Love by Anonymous Coward · · Score: 0

    for plagiarism. His article was printed in The Baffler years before that dumb be0tch.

  137. LIES Again! by Superfreaker · · Score: 1

    The article posted just before this one does the same.

    We have one of the most successful systems that have debuted singles higher than any other digital download system (payloadz.com).

    We charge the record company 10% msrp on each txn, they charge $1.49, paypal makes out big time with $.30 + 2% and the rest goes to the label and artist. Since the publishing units do not get involved, the yield is much higher for the artist.
    http://members.ebay.com/aboutme/warnerbro srecords/

  138. That's not the ponit by autopr0n · · Score: 1

    Not very much work goes into making each disk and hardly any work goes into each copy of the mp3. Unlike the car, where it takes a huge amount of actual work to make the physical copy. When you buy a car, you are paying for the physical copy of the machine, not the 'intelectual property'. Obviously a lot of bands work hard, but all the lables do is market stuff. Why should I pay for a music companies efforts to sell me something?

    --
    autopr0n is like, down and stuff.
  139. YOU WORTHLESS LYING SHIT by Anonymous Coward · · Score: 0

    QUIT ABUSING your children you fuckwad. What the fuck is wrong with your stupid pedophile head? YOU YOU QUIT IT NOW!!! I've reported you to the authorities for that child porn you shit.

  140. Artists do better than songwriters . . . by werdna · · Score: 1

    Every musical recording (so-called phonorecord) potentially involves two copyrights, the copyright in the underlying musical work (that is, the song itself), and the copyright in the recording of the musical work (the tracks laid down by what you have been calling the "artists.")

    For trivia buffs, the (p) p-in-circle symbol refers to the phonorecord copyright, and the (c) c-in-circle symbol refers to the copyright in the musical work.

    At any rate, there is an 8% piece of the pie reserved for the rights to the song -- usually split between the publisher and the songwriter.

  141. $35K was worth something back then by yerricde · · Score: 1

    So Anka wrote what was for decades one of the most widely broadcast tunes in the world, and he got a lousy $35K a year for it?

    Before Leno took over for Carson on Tonight Show, $35,000 was actually worth something. Besides, I'm assuming he supplemented his income from that song with income from other songs.

    --
    Will I retire or break 10K?
  142. not bad for many industries by Jason+Mark · · Score: 1

    From a manufacturing point of view, that's not a bad percentage. If you invented a "widget" in the real world you'd probably get less. As a general rule everyone who touches a product get's 50% of it. The retailers, the distributors, etc. Retailer (i.e. Quick-E Mart) 50% Distributor 25% Manufacturer 12.5% Owner 12.5% Once you start talking about commodity products (i.e. toilet paper, tools) things start getting tighter. Many manufacturers that I work with are happy to get a 4% profit margin, and they're the owners/creators/patent holders on their products.

  143. About the same percentage in tennis... by Roadfever · · Score: 1

    "Estimates are that about 15 percent of Wimbledon revenue goes to prize money, while less than 10 percent of U.S. Open revenue ends up with the players."

    http://money.cnn.com/2003/06/20/commentary/colum n_ sportsbiz/sportsbiz/index.htm

  144. Price is Right (even if it's wrong) by alset_tech · · Score: 1

    Artists receive an average 9% of the profits on album sales. $0.12 is actually in line with regular sales.

    Standard recording contracts are written to make it impossible for artists to turn a profit. The artist gets 12%, but has to give a quarter of the points to the producer. The record company charges for development of CD technology. There is a clause to prevent pay-outs on 10% of sales based on damaged shipping (this comes from the days of vinyl, when one in ten records really broke in transit). Companies also repackage CDs and sell them at a discount, which stands outside the artist's contract. If you have ever purchased a CD with a small notch in the jewel case, the band didn't see one penny. Outlet stores like Best Buy purchase CDs in bulk to get a discount, so the artist is making an even smaller cut. Whatever discs don't sell get bought back by the record company. They charge the artist for the buyback, notch the discs and sell them in other markets (Europe, India) without crediting the artist with any of the profit.

    Artists are being equally screwed by the record companies when we buy music online. It isn't fair, but services like iTMS are not to blame.

    Dan

    --
    Standing on the shoulders of giants.
  145. Record companies are getting what they deserve. by BroncoInCalifornia · · Score: 1

    Record companies give very bad contracts to the new bands they sign up. If that band does not sign up to those terms there are 20 more out there who will sign up. These bands get none of that 12 cents. It all goes to "expenses" of the record companies.

    Now the record companies are coming to us with big crocodile tears saying "pirates' and P2P file shares are ripping off the artist. But the "pirates" are not ripping off the artists. They are ripping off the record companies who are ripping off the artists.

    --

    Religion is the main cause of atheism.

  146. Better deal than piracy? Maybe not by serutan · · Score: 1

    from the article:
    "it's clearly a better deal than they get from piracy."

    It's only a better deal if the musician's 12% cut of the download fee is somehow not covered by their recording contract. Normally all expenses of production, manufacturing, advertising and distribution come out of the musician's share, usually leaving zero. This standard recording contract provision is why musicians themselves don't actually lose money to piracy. They don't lose money because they don't make money from record sales. Musicians make money by playing gigs, and the exposure they get from record sales (or airplay, or downloads) generates more and better gigs. Downloading does not hurt musicians, it helps them.

    For further explanation read some of Janis Ian's informative articles on the mechanics of the recording business.

  147. Re:You're forgetting... by chimpo13 · · Score: 1

    They changed it so you can only give away 3 songs now. I don't check our mp3 site much so it took me a bit to notice.

    If you pay mp3 $5/month or $15/month, they will give away up to 100 of your songs, will pay you royalties, and will answer your questions.

    http://www.mp3.com/premium/

  148. Re:You're forgetting... by Reziac · · Score: 1

    [goes off, reads link] Gak. This makes the whole thing pretty much untenable for any artist who doesn't already have either an established audience who can be counted on to buy their CDs, or enough money to blow on self-promotion that may never go anywhere if they fail to get noticed. Three MP3s is not usually even a good cross-section of an artist's work, let alone enough to addict a new fan.

    Also, the way the benefits package is structured, it pretty much ensures that the only people who WILL get noticed are those who are already making enough to pay for the extras. IOW, I think they're trying to discourage all the freebies, and everyone who isn't already making *mp3.com* significant bucks.

    [reads assorted "CD sales" FAQs] Hrmmm... I wasn't aware that the CDs they sell contain mere 128 or 192kbit MP3s; I'd have expected normal CD quality WAV files. What benefit is there to me, as a customer, over just downloading the MP3s, if what they sell me on a CD doesn't sound any better?? (Uncompressing an MP3 and calling it "CD quality" doesn't cut it.)

    No wonder you've got a "don't buy the CD!" statement on your mp3.com page!! :(

    [wanders nokilli.com] You guys are quite properly sick ;) I'll have to drag home some of your stuff to check out. -- Hey, I have an old vinyl album "Hogan's Heroes Sing the Best of WW2" that was recorded *by* four of the series stars!! It's actually very good. Did you know there are words to the show's theme song? Funny as hell!

    --
    ~REZ~ #43301. Who'd fake being me anyway?
  149. Re:You're forgetting... by chimpo13 · · Score: 1

    I've got 2 or 3 copies of that record too. Part of my huge Hogan's Heroes collection.

    We're just a punk rock band, so if that's not your thing, don't get too excited. Although I think some of our lyrics are pretty funny though.

  150. Re:You're forgetting... by Reziac · · Score: 1

    Some punk gets me excited, some doesn't... never know what's gonna turn my crank. I'll just have to give 'em a download and an ear or two.

    [reads lyrics] "drinking Klingonese" -- oh, man, that's enough to give a person the vapours ;)

    You ever get sucked into playing "Banned from Argo" ??

    --
    ~REZ~ #43301. Who'd fake being me anyway?
  151. Re:You're forgetting... by chimpo13 · · Score: 1

    Ack, what a horrible vapours pun.

    I had to look up Banned from Argo. I've never heard of it. Know where I can get an mp3?

  152. Re:You're forgetting... by Reziac · · Score: 1

    We strive for cruel and unusual punishment ;)

    I've never seen any of Leslie Fish's stuff as an MP3 (tho you can buy it on CD) -- nor, come to think of it, *any* filk as an MP3. :(

    There's a slight variant built by a Jewish historian: "Banned from Egypt" (after just a plague or two...)

    --
    ~REZ~ #43301. Who'd fake being me anyway?
  153. Guess you're part of that evolution? by Anonymous Coward · · Score: 0

    The cost is zero. The cost is in the denominator. Thus, zero is in the denominator. Thus it is indeed undefined. Dipshit.