Auto-SummaryThis forum post debates the impact of file sharing on musicians' earnings, with the original poster dismissing the argument as "full of shit." Courtney Love, a fellow music creator, counters this view in an article, highlighting the stark reality of artists' financial struggles despite high sales figures. She cites a breakdown of a typical record deal, revealing that after expenses like recording, management fees, taxes, and marketing, artists often receive mere $45,000 per year to survive. Love emphasizes that many musicians, even those with decades of successful work, live in poverty and lack basic support like health care. The post concludes by questioning the fairness of such a system, questioning whether exceptions like Metallica's success are truly representative of the overall industry. Readers are invited to explore the full article for further insights.
JesusIsLord said: Besides all these semantics, you're just being an asshole to the people that make music. There's a reason shows cost money, albums cost money, it takes time and money to make music.
This is not really true, though. I actually read a good article that talks about this, the other day, written by Courtney Love whom you may or may not know, is one of those "people that make music." She makes a few very good points in this article, which, when taken together, reveal just how full of shit you are. I'd like to see the exact figures on this, but this seems like a telling statement:
"There were a billion music downloads last year, but music sales are up. Where’s the evidence that downloads hurt business? Downloads are creating more demand."
But even though music sales may be somehow increased by the practice of file sharing, people who do so are still bastards because they're taking money out of the musicians' pockets, right?
"Story after story gets told about artists — some of them in their 60s and 70s, some of them authors of huge successful songs that we all enjoy, use and sing — living in total poverty, never having been paid anything. Not even having access to a union or to basic health care. Artists who have generated billions of dollars for an industry die broke and un-cared for.
And they’re not actors or participators. They’re the rightful owners, originators and performers of original compositions.
This is piracy.
Here's courtney's break-down of a typical record company dealing with a band, and how the money often breaks down.
Quote: This story is about a bidding-war band that gets a huge deal with a 20 percent royalty rate and a million-dollar advance. (No bidding-war band ever got a 20 percent royalty, but whatever.) This is my “funny” math based on some reality and I just want to qualify it by saying I’m positive it’s better math than what Edgar Bronfman Jr. [the president and CEO of Seagram, which owns Polygram] would provide.
What happens to that million dollars?
They spend half a million to record their album. That leaves the band with $500,000. They pay $100,000 to their manager for 20 percent commission. They pay $25,000 each to their lawyer and business manager.
That leaves $350,000 for the four band members to split. After $170,000 in taxes, there’s $180,000 left. That comes out to $45,000 per person.
That’s $45,000 to live on for a year until the record gets released.
The record is a big hit and sells a million copies. (How a bidding-war band sells a million copies of its debut record is another rant entirely, but it’s based on any basic civics-class knowledge that any of us have about cartels. Put simply, the antitrust laws in this country are basically a joke, protecting us just enough to not have to re-name our park service the Phillip Morris National Park Service.)
So, this band releases two singles and makes two videos. The two videos cost a million dollars to make and 50 percent of the video production costs are recouped out of the band’s royalties.
The band gets $200,000 in tour support, which is 100 percent recoupable.
The record company spends $300,000 on independent radio promotion. You have to pay independent promotion to get your song on the radio; independent promotion is a system where the record companies use middlemen so they can pretend not to know that radio stations — the unified broadcast system — are getting paid to play their records.
All of those independent promotion costs are charged to the band.
Since the original million-dollar advance is also recoupable, the band owes $2 million to the record company.
If all of the million records are sold at full price with no discounts or record clubs, the band earns $2 million in royalties, since their 20 percent royalty works out to $2 a record.
Two million dollars in royalties minus $2 million in recoupable expenses equals … zero!
How much does the record company make?
They grossed $11 million.
It costs $500,000 to manufacture the CDs and they advanced the band $1 million. Plus there were $1 million in video costs, $300,000 in radio promotion and $200,000 in tour support.
The company also paid $750,000 in music publishing royalties.
They spent $2.2 million on marketing. That’s mostly retail advertising, but marketing also pays for those huge posters of Marilyn Manson in Times Square and the street scouts who drive around in vans handing out black Korn T-shirts and backwards baseball caps. Not to mention trips to Scores and cash for tips for all and sundry.
Add it up and the record company has spent about $4.4 million.
So their profit is $6.6 million; the band may as well be working at a 7-Eleven.
I'm sure this is not true in every single case. Maybe a band like Metallica who (at one point, at least) is highly commercially viable and selling well for a number of years can do better. But as has been mentioned-- those guys still probably do better with concert and t-shirt sales, and guitar hero, or whatever else.
Article can be found here, if anyone wants to read it: http://www.salon.com/2000/06/14/love_7/
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I am me. We are You.
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