Magnatune isn't a big label, but it's DRM-free and splits 50/50 with the artists. It's also non-exclusive, so the artists can make deals with others as well, if they like. Their "end-user" license lets each subscriber give 3 friends a copy of the music.
* Major label gives artist a loan for $X to cover the costs of
producing the album.
* Artists earn back something like 12% on album sales (though I
believe 12% is on the high end).
* That 12% goes directly towards paying back the loan for the
production of the album.
* Artists don't retain the copyrights to their works (at least the
recordings, they may retain copyright to the lyrics, depending on
the contract/studio).
* Artists don't give a cut of merchandise sales, or ticket sales for
live shows.
* Artists retain the copyrights to recordings of live performances,
which is how bands like Grateful Dead or Dave Matthews can allow
'bootleg' recordings of their live shows.
* The studio retains rights to copyrights of live shows that are
professionally recorded for the purposes of putting out a 'live'
album though.
* Most artists are never able to pay back the initial loan to create
the album.
Comments
Magnatune isn't a big label, but it's DRM-free and splits 50/50 with the artists. It's also non-exclusive, so the artists can make deals with others as well, if they like. Their "end-user" license lets each subscriber give 3 friends a copy of the music.
I'm not familiar with the industry, but is 50/50 split considered good?
IIRC, the major label deal goes like this:
The other side:
* Major label advances an unknown artist a bunch of money.
* Album sells poorly.
* Artist never pays back advance.
* Major label would have been better not making the deal.