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Martian · 02-04-2006, 04:52 PM

Nature of the biz.

Most people don't realize exactly how much power the big labels have. When you sign their contract, you effectively become their property. They get to tell you what you release and when you release it. The release date of an album is entirely at the label's discretion.. they can release it right away or shelve it indefinitely. They can essentially hold it hostage by telling you that they don't like certain tracks and that they need to be replaced before the record will be released.

Oh yeah, and you don't get paid until the record comes out. It amounts to extortion. And who owns the copyright to the music when it does come out? Take a wild guess. Therefore, if you record or distribute the track in any way without your label's consent, you could theoretically be sued for copyright infringement involving music that you wrote and recorded yourself. Good Charlotte got shafted big that way - their first album was a fairly well received garage punk offering when they put it out there, sort of a Weezer meets Green Day affair. Their second album, released by Sony, was a rather forgettable pop punk offering. Although it's never been publically acknowledged by either side, there's a large portion of the fan base who believes that this was a result of direct influence from Sony, forcing the boys of GC to conform to the big genre of the day. And since Sony owns the rights to their current catalogue as well as the next five albums Good Charlotte produces, there's very little that the band can do about it unless Sony decides to drop them.

When it comes to signing, the whole thing is an even bigger mess. Because profits in the music industry are nosediving, the labels are tightening their belts. Basically what they're lookng for at the moment is one hit wonders, because that's where the money is. They sign the band, make their advances (say, $4 million all tolled), release an album and a couple of singles to $8 or $10 million gross profit. Then they ask the band for their $1-$2 million advance back, leaving the label with about $5 million profit and the band with next to nothing. The big names are unattractive, because they start to get the sway to start getting their own fair share of the profits - denying the label that money.

Your talent's probably better off where he is just now. Independent artists don't make a whole heck of a lot of money, but they don't do much worse than any but the top names on the big labels either (which, according to figures, makes up roughly 5% of a label's catalogue). While he doesn't make a whole lot doing things on his own, he also doesn't end up with huge debts to a big label that need to be paid back. If he's smart, he's not even sending in demos, realizing that the best possible scenario is that he'll get one big hit and then be released from his contract (when you're released, any outstanding debts or advances are wiped out).

The good news is, the whole thing is looking like it's going to change soon. Pressure is mounting; sales are down and the RAC is starting to make it's voice heard. The whole system as it stands now just doesn't work anymore.

As to whether what will replace will be better or worse, who knows? But something's going to give, sooner or later.

02-04-2006, 04:52 PM	#3 (permalink)
Martian Young Crumudgeon Location: Canada	Nature of the biz. Most people don't realize exactly how much power the big labels have. When you sign their contract, you effectively become their property. They get to tell you what you release and when you release it. The release date of an album is entirely at the label's discretion.. they can release it right away or shelve it indefinitely. They can essentially hold it hostage by telling you that they don't like certain tracks and that they need to be replaced before the record will be released. Oh yeah, and you don't get paid until the record comes out. It amounts to extortion. And who owns the copyright to the music when it does come out? Take a wild guess. Therefore, if you record or distribute the track in any way without your label's consent, you could theoretically be sued for copyright infringement involving music that you wrote and recorded yourself. Good Charlotte got shafted big that way - their first album was a fairly well received garage punk offering when they put it out there, sort of a Weezer meets Green Day affair. Their second album, released by Sony, was a rather forgettable pop punk offering. Although it's never been publically acknowledged by either side, there's a large portion of the fan base who believes that this was a result of direct influence from Sony, forcing the boys of GC to conform to the big genre of the day. And since Sony owns the rights to their current catalogue as well as the next five albums Good Charlotte produces, there's very little that the band can do about it unless Sony decides to drop them. When it comes to signing, the whole thing is an even bigger mess. Because profits in the music industry are nosediving, the labels are tightening their belts. Basically what they're lookng for at the moment is one hit wonders, because that's where the money is. They sign the band, make their advances (say, $4 million all tolled), release an album and a couple of singles to $8 or $10 million gross profit. Then they ask the band for their $1-$2 million advance back, leaving the label with about $5 million profit and the band with next to nothing. The big names are unattractive, because they start to get the sway to start getting their own fair share of the profits - denying the label that money. Your talent's probably better off where he is just now. Independent artists don't make a whole heck of a lot of money, but they don't do much worse than any but the top names on the big labels either (which, according to figures, makes up roughly 5% of a label's catalogue). While he doesn't make a whole lot doing things on his own, he also doesn't end up with huge debts to a big label that need to be paid back. If he's smart, he's not even sending in demos, realizing that the best possible scenario is that he'll get one big hit and then be released from his contract (when you're released, any outstanding debts or advances are wiped out). The good news is, the whole thing is looking like it's going to change soon. Pressure is mounting; sales are down and the RAC is starting to make it's voice heard. The whole system as it stands now just doesn't work anymore. As to whether what will replace will be better or worse, who knows? But something's going to give, sooner or later. __________________ I wake up in the morning more tired than before I slept I get through cryin' and I'm sadder than before I wept I get through thinkin' now, and the thoughts have left my head I get through speakin' and I can't remember, not a word that I said - Ben Harper, Show Me A Little Shame