David Lowery, vocalist for Cracker and Camper van Beethoven, rationally argues how bands are getting screw worse today than they were 10 years ago. It’s an excellent read and quite an eye-opener. Kinda makes you want to put down your sword for pause, eh?
“We know this empirically. The facts and evidence are in. Let’s start with the best case scenario. Let’s just look at the division of gross revenues and expenses. The scenario where the artist puts out the record themselves on their own label. Okay, the vast majority of sales take place on iTunes and Amazon. How much does the artist get paid? Well if you are independent, you get 61% of gross, because you need either a distributor or an aggregator to get onto iTunes. iTunes itself keeps more than 30% for simply hosting the songs on their servers. They do absolutely nothing else.
“This is why Steve Jobs was a genius. He was not afraid to be greedy. So now an old-style record deal might have netted the artist 20-35% of gross (most reports of artists deals are wrong and low because they don’t include the mechanical royalties).
“The old deals weren’t great at first glance, but then if you start digging into it they weren’t as bad as people think. And as I will show you were in most cases a better deal for the artists than the new model. 61% of gross is a lot better than 20-35% of gross until you consider the fact that under the new model the artist is responsible for all aspects of the records production, marketing and distribution.
Read more HERE.