The problem with your statement is that it only applies to bands involved with major labels. The digital audio revolution allows artists to make their own CD's etc. with a relatively small investment, and keep the lion's share of the profits. Real numbers: you can set up a digital 8-track studio capable of pro-quality results for a 1-time investment of 10-20k. (I know, I've priced dozens of variations.) Many mastering houses press CDs for about $3 or less per unit (buying about 1000 units.) Say you put out 5 CDs total, with 1000 copies each. Cost per unit for the gear is now $4, add $3 for printing/packaging - unit cost is $7. Band sells for $15; $8 per disk profit. (Perspective: Most big names get around $2 per disk in a straight deal; hence the greater profit in touring & merch.) OK: 5 CDs, 1000 units each = 5000 units. Big label pays 10k to artist. Homebrew makes 40k. Who's better off? (Incidently, if Madonna's next album sells 5000 units, she'll be dropped like a hot potato!) As far as getting new bands out there, the sword cuts both ways. You tend to become a very tiny fish in an immense, ocean-sized pond.
Slashdot Mirror
The problem with your statement is that it only applies to bands involved with major labels. The digital audio revolution allows artists to make their own CD's etc. with a relatively small investment, and keep the lion's share of the profits. Real numbers: you can set up a digital 8-track studio capable of pro-quality results for a 1-time investment of 10-20k. (I know, I've priced dozens of variations.) Many mastering houses press CDs for about $3 or less per unit (buying about 1000 units.) Say you put out 5 CDs total, with 1000 copies each. Cost per unit for the gear is now $4, add $3 for printing/packaging - unit cost is $7. Band sells for $15; $8 per disk profit. (Perspective: Most big names get around $2 per disk in a straight deal; hence the greater profit in touring & merch.) OK: 5 CDs, 1000 units each = 5000 units. Big label pays 10k to artist. Homebrew makes 40k. Who's better off? (Incidently, if Madonna's next album sells 5000 units, she'll be dropped like a hot potato!) As far as getting new bands out there, the sword cuts both ways. You tend to become a very tiny fish in an immense, ocean-sized pond.