Originally posted by Spotnick
Crap..We all know artist do their money when doing GIGS, not on the albums only...Have you ever thought of the percentage the artists touch on one sale? it's ridiculous.. we know the prices now to produce an album and even though we know it's probably a lot cheaper due to a lot bigger production, it's completely ridiculous...All the rest is profit for the label and spent in publicity...So screw them! free the music industry and let's do gigs instead of buying albums!
I don't think bands make a whole lot of money on touring; in fact, touring can cost the band (and the record company) money. They do it for one reason-- to promote sales of their new material, and hopefully, of their back-catalogue.
And touring, whether it's profitable or not, is hard, hard work, physically and psychologically. It takes a toll on the individual band members, and on their families. There's a reason that bands trying to make it tour constantly, and that bands that have made it cut back on touring.
The percentage that artists make on a CD is ridiculously small. I don't claim any special expertise in terms of knowing where the money goes, but I don't think it's accurate to say that since the band gets at most $1 from the sale of a $16 CD, that the rest goes to the "greedy" record company. A $16 CD is sold at the retail price; the wholesale price is going to be coniderably less-- perhaps as low as $8? The difference between wholesale and retail goes to the "greedy" record store where you bought the CD-- and they have to pay for rent, utilities, wages, taxes, and all the other overhead expenses necessary to keep their doors open, as well as keep their shelves stocked.
So the record company gets what-- $8 on the sale of the CD? And $1 of that goes to the artist? That leaves $7 for the record company; but that isn't all gravy-- record companies cost money to run. The record company may have to pay a band to sign-- in some cases, they may pay a small fortune to get a band to sign. They have to record the band, which means fronting the band money for the recording sessions. The recording studio needs to get paid, regardless of whether the band sells CD's or not. So the record company fronts the band money for the recording sessions. If the record company is fortunate, they'll get that money back when the CD sells. If the CD doesn't sell, or if Shaun Ryder pisses the recording money away, the record company loses it's investment. The record comapny's investment doesn't stop there. CD's need artwork, and promotion-- including touring, which can be a money loser, unless CD sales are factored in. And if the CD doesn't sell, the record company loses its investment.
It doesn't stop there. Do you like to hear new music, by new bands, or would you prefer to only hear music by bands that are established? Record companies invest in new bands, without any guarantee that those bands will sell CDs. Some bands go on to make a lot of money, and the record company sees a return on it's investment. Some bands-- perhaps the majority-- are money pits. That's the risk inherent in trying to bring new bands to the market.
On top of everything else, record companies also have overhead-- rent, salaries, taxes, etc. And yes, record company exec's are well-paid, as are various knighted "rock stars," but I think it's a mistake to look at a handful of well-paid people and think that that's where your $16 went.
So in the end, cutting out the record companies-- and the artists-- by downloading "free" music hurts the artists, who are getting screwed out of their income by their "fans," and lessens the ability of record companies to invest in new bands.