RIAA Math: Sell 1 Million Albums, Still Owe $500k

An anonymous reader writes "For all the complaints from the RIAA about 'pirates,' who are the real pirates in this scenario? Through a variety of contractual tricks, it's nearly impossible for artists signed to major labels to get paid. The article and video detail how an artist who thinks he's getting a 10% royalty is actually getting closer to 2.5% through various tricks placed in the contract. The labels, then, end up with 97.5% of the gross revenue, and anything they 'spend' on the artist continues to come out of the royalties, not the labels' cut."

Steve Albini Wrote About This A While Back

[CowboyBob500]

http://www.negativland.com/albini.html [negativland.com] Major labels have always screwed their artists, which is why I've always attempted to go it alone - even though I've so far been fairly unsuccessful, that's still better than going with the majors.

Re:Don't sign it

[Eraesr]

You as contractor have a bargaining position. You can afford to walk away. Most artists cannot afford this, simply because in most cases the alternatives are just as bad or worse.

Re:The rise of indie

[Moryath]

- The MafiAA control the booking for 99% of the performance venues that seat more than 50 people. Get yourself to a large enough following, and you'll have problems. Piss off the MafiAA by being independent too long and they'll have you blackballed from performance venues.

- The MafiAA control the vast, vast majority of sound studios. Want to rent time and the equipment to record your album? Their response will be "fuck you, you're not under contract, get lost till someone signs you."

- Likewise, the vast majority of record producers, sound mixers, etc... are under MafiAA control.

- The MafiAA control the "top 40" lists and radio playback. Your music will never get onto the radio or onto satellite radio without them, let alone onto the pre-show movie screener reels or any other of the "combined marketing" channels. And like it or not, that is STILL how most people get exposed to new music these days.

I have several friends who've gone the indie route. Some of whom are merely good, one of whom is a fucking virtuoso, can pick up almost any instrument and give a good accounting, is phenomenal on the guitar, and has a killer instinct for writing earworms. The most he's ever been able to earn in a year, despite these talents, is about $20k - not bad for a part-time gig, but when he didn't have a day job, making a living as an indie was a matter of Just Barely Breaking Even month to month living in the crappiest, cheapest possible apartment and scheduling band practices at - you guessed it - the drummer's garage.

Note I don't say he wasn't being paid well, by most standards, for the gigs (and they had a decent number). But once you count in fuel costs, equipment costs, instrument maintenance, and split the remainder four or five ways, the money for "indie" bands to perform isn't really all that much at all.

Re:Where's the news?

[multisync]

True enough. Courtney Love schooled [salon.com] the RIAA years ago on this very subject.

Re:The rise of indie

[Eraesr]

It is still incredibly hard to become a successful (read: profitable) artist without the help of a (major) label. Big artists like Coldplay and Nine Inch Nails can afford to publish their own albums online without a label coming in between because any product with their names tied to it is guaranteed to sell. Starting artists just don't have the budget, the connections or the know-how on promoting their own music or landing gigs in large venues.

Comment removed

[account_deleted]

Comment removed based on user account deletion