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It's all about the music, dude! Sit down, relax and listen to some tunes.

Makes sense

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.


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