I read this remarkable post on a public mailing list I subscribe to. I thought it was such a great insight into running a music label, that I just had to post it here. It discusses issues facing modern music, such as DRM, DMCA, and other ways of making (or losing) money. Fascinating.
Here it is:
I work for a (fairly small) indie label - from witnessing this model in action I feel I have to stick up for the label given that I see the model working (or sometimes not so well) on a daily basis! Where we’ve done deals with artists in the past, they’ve almost always been a 50/50 arrangement - the artist receives 50% of net royalties. Where a label fronts recording costs, these can easily become £6-10,000 for an album session. Even an EP session can be upwards of £1,500 although these figures are a little pessimistic (though not unrealistic). (We actually designed, built and owned studios for ten years until 2001 but the project haemorrhaged money.)
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