How Recording Companies "con" Music Artists (also deals with file sharing)

Essay by popemastaHigh School, 11th gradeB+, March 2004

download word file, 3 pages 2.3

The following is a testament to how recording labels are able to swindle artists that are conned into signing them.

Advance: $ 250,000

Manager's cut: $ 37,500

Legal fees: $ 10,000

Recording Budget: $ 150,000

Producer's advance: $ 50,000

Studio fee: $ 52,500

Drum Amp, Mic and Phase "Doctors": $ 3,000

Recording tape: $ 8,000

Equipment rental: $ 5,000

Cartage and Transportation: $ 5,000

Lodgings while in studio: $ 10,000

Catering: $ 3,000

Mastering: $ 10,000

Tape copies, reference CDs, shipping tapes, misc. expenses: $ 2,000

Video budget: $ 30,000

Cameras: $ 8,000

Crew: $ 5,000

Processing and transfers: $ 3,000

Off-line: $ 2,000

On-line editing: $ 3,000

Catering: $ 1,000

Stage and construction: $ 3,000

Copies, couriers, transportation: $ 2,000

Director's fee: $ 3,000

Album Artwork: $ 5,000

Promotional photo shoot and duplication: $ 2,000

Band fund: $ 15,000

New fancy professional drum kit: $ 5,000

New fancy professional guitars [2]: $ 3,000

New fancy professional guitar amp rigs [2]: $ 4,000

New fancy potato-shaped bass guitar: $ 1,000

New fancy rack of lights bass amp: $ 1,000

Rehearsal space rental: $ 500

Big blowout party for their friends: $ 500

Tour expense [5 weeks]: $ 50,875

Bus: $ 25,000

Crew [3]: $ 7,500

Food and per diems: $ 7,875

Fuel: $ 3,000

Consumable supplies: $ 3,500

Wardrobe: $ 1,000

Promotion: $ 3,000

Tour gross income: $ 50,000

Agent's cut: $ 7,500

Manager's cut: $ 7,500

Merchandising advance: $ 20,000

Manager's cut: $ 3,000

Lawyer's fee: $ 1,000

Publishing advance: $ 20,000

Manager's cut: $ 3,000

Lawyer's fee: $ 1,000

Record sales: 250,000 @ $12 =$3,000,000

Gross retail revenue Royalty: [13% of 90% of retail]:$ 351,000

Less advance: $ 250,000

Producer's points: [3% less $50,000 advance]:$ 40,000

Promotional budget: $ 25,000

Recoupable buyout from previous label: $ 50,000...