| reply to bear73
Re: This will work said by bear73:As the article stated, the majority of income was derived from tours and t-shirts, not CD sales. No. That is what Karl said, not NIN. Any proof of where their income comes from?
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2 edits | »www.economist.com/business/displ···=9443082
quote:
Indeed. Seven years ago musicians derived two-thirds of their income, via record labels, from pre-recorded music, with the other one-third coming from concert tours, merchandise and endorsements, according to the Music Managers Forum, a trade group in London. But today those proportions have been reversed—cutting the labels off from the industry's biggest and fastest-growing sources of revenue. Concert-ticket sales in North America alone increased from $1.7 billion in 2000 to over $3.1 billion last year, according to Pollstar, a trade magazine.
Frustrated record companies have responded by trying to get their artists to spend more time promoting records and less time touring and endorsing products, says Jeanne Meyer of EMI, another big record label. “Sometimes you've got a tug of war going on,” she says. Yet the more labels spend on marketing pre-recorded music, the more they raise their artists' profiles and boost their other, more lucrative, sources of income. Pre-recorded music, no longer the main cash cow, increasingly serves merely as a marketing tool for T-shirts and concert tickets. The best seats for The Police's world tour this summer cost over $900; the group's entire catalogue on CD costs less than $100.
»www.forbes-global.com/forbes/200···int.html
quote:
A new group typically gets only 14% of a CD's wholesale price, and even that cut dwindles to a third of that once the company deducts promotional fees. . . Performers frequently moan about never seeing a royalty check from their record label, no matter how many discs they sell. But a top concert draw can take home 35% of the night's gate and up to 50% of the dollar flow from merchandise sold at the show. The labels get none of it.
Now, at least as a big act, imagine cutting the label out of that process entirely. |
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 King PDon't blame me. I voted for Ron PaulPremium
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| reply to fAcEtIOUs
As one that both studied Recording Industry and works in the industry, I can tell you that Karl is right. CD's are nothing more than promotional material to an artist, if they are signed to a label. The label makes most of the money in that situation, and the artist makes money from touring and licensing. That's why most songwriters have their own publishing "company" for their music.
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| reply to Karl Bode
said by Karl Bode:» www.forbes-global.com/forbes/200···int.html quote:
A new group typically gets only 14% of a CD's wholesale price, and even that cut dwindles to a third of that once the company deducts promotional fees. . . Performers frequently moan about never seeing a royalty check from their record label, no matter how many discs they sell. But a top concert draw can take home 35% of the night's gate and up to 50% of the dollar flow from merchandise sold at the show. The labels get none of it.
Now, at least as a big act, imagine cutting the label out of that process entirely. But the labels aren't stupid. If you are a noname, nobody band, you need a label to get known. And the labels now are demanding a different contract:
»www.economist.com/business/displ···=9443082
Record labels have come up with a remedy: the “360° contract”. Instead of settling for a cut of CD sales, they increasingly offer artists broader contracts that encompass live music, merchandise and endorsement deals.
Musicians with small fan bases and little business experience are much more receptive to the idea of 360° deals. There is no shortage of aspiring artists, and some will become big names. Juha Ruusunen, the founder of TWU, a small management agency for heavy-metal bands based in Jyväskylä, Finland, says European labels have begun to sign up new talent with 360° contracts. So, the old well known names can make out. Newer groups will sell their soul for long term contracts where the labels get a bigger cut of all the ancillary income.
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4 edits | quote:
If you are a noname, nobody band, you need a label to get known.
Do you?
Starting to see these groups (Pearl Jam, Jack Johnson and NIN come to mind), taking new artists in under their wing and pushing out product under their own "labels" (the semantic definition of which isn't the point) focused on artists. Nobody had ever heard of Saul Williams six months ago until Reznor promoted him. |
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 pnh102Reptiles Are Cuddly And PrettyPremium
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Mount Airy, MD | said by Karl Bode: quote:
If you are a noname, nobody band, you need a label to get known.
Do you? Absolutely.
said by Karl Bode:Starting to see these groups (Pearl Jam, Jack Johnson and NIN come to mind), taking new artists in under their wing and pushing out product under their own labels. "Nobody" had ever heard of Saul Williams six months ago until Reznor promoted him. Emphasis mine. Saul Williams still needed a label to become known. In this case, it was Trent Reznor's label.
The Internet has been part of the mainstream for quite sometime now. However, we still have yet to see any act go from nothing to something without a label.
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 ArmainaNot every saint is a foolPremium
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Tempe, AZ | said by pnh102:The Internet has been part of the mainstream for quite sometime now. However, we still have yet to see any act go from nothing to something without a label. yet
Personally I think we'll start to see more start to make it on their own as they start to learn how to really use the resources available. |
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pnh102Reptiles Are Cuddly And PrettyPremium
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Mount Airy, MD | I'm certainly not dismissing the possibility. I'm just surprised it has taken so long for it to happen.
I still think that labels are relevant, even if selling CDs is no longer going to be their core business. Someone has to promote an act, after all.
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 LilYodaFeline with squirel personality disorderPremium
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Mountains | reply to pnh102
said by pnh102:However, we still have yet to see any act go from nothing to something without a label. Not sure how popular she is in the states, but I think that's more or less what Lily Allen has done in Europe...
»en.wikipedia.org/wiki/Lily_Allen
She had a first label contract, that got her nowhere. She then got another one that got her £25000, but no help to make the album or promote it. She then gained exposure by posting her music on her MySpace page.
I do agree that it is an exception, and not the norm
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| reply to fAcEtIOUs
Check out eMusic.com and AmieStreet.com. There are a lot of bands out there that aren't selling their souls to get a big recording contract. Sites like this don't require the artist to give up copyright ownership and don't take as large a chunk of the music sales. As time progresses, this model will become more and more popular for musicians. Record Labels (as they exist now) are on their way out and the artists will be better off overall for it.
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