In Reply to: RE: I think you're right posted by rbolaw on August 11, 2016 at 16:31:36:
UMG may be calling the shots here for Decca or DG.
It seems to me that record companies see themselves as vehicles of "promotion" for the artists, and the 10% cut is on that basis. As long as Decca and DG have a stable of major artists, it will certainly help an upcoming artist to be seen to be signed to a major label. Maybe the major labels have some kind of back door deal with other managers and agents, who are all working to promote the artist. It's all about credibility.
The guy who gave me this information also talked about how important promotion was for new artists, and how they might take out a year long contract with a PR company to promote them. He said this did generate results and was becoming increasingly common.
Think of all this as "promotion". Promotion generates revenue. Unfortunately it's the artist in the end who has to pay percentages to a lot of people for this promotion.
Percentages are common in the popular music business. Producers routinely ask for a percentage of the songwriting rights even if they don't actually write any of it - it's just how they take their cut.
This post is made possible by the generous support of people like you and our sponsors:
Follow Ups
- Makes sense - andy evans 01:22:28 08/12/16 (9)
- It just doesn't work that way though in todays classical music scene - Analog Scott 08:04:51 08/13/16 (7)
- It has to make sense if this is what's happening... - andy evans 03:48:36 08/14/16 (6)
- Is it "happening?" - Analog Scott 16:18:58 08/14/16 (5)
- You seem determined to disbelieve this... - andy evans 17:20:07 08/14/16 (4)
- By the way, I don't disbelieve that DG is pimping this deal - Analog Scott 20:40:45 08/14/16 (0)
- It's not about determination. It's about logic and facts - Analog Scott 17:31:10 08/14/16 (2)
- Logic and facts......??? - andy evans 01:58:29 08/15/16 (1)
- Bad analogy - Analog Scott 03:04:41 08/15/16 (0)
- True, although ... - rbolaw 07:20:22 08/12/16 (0)