Music Business Past vs. Present
In the past, the music company was controlled by the major record labels. The record labels regulated everything in an artist’s profession from start to finish. The record label would manage and artist image, airplay, access to audits, similarity, royalty rate, success and everything in between while under the record label agreement. When the artist career was over, the artist frequently didn’t have anything to show for their hard work and imagination.
Back in the day, the record label would fund artist’s job in advance in the form of an advance. The advance normally amounted to a loan which the artist had to pay back. The record label would finance the recording, distribution and promo of the artist project then “recoup” the money after the job started offering. Although it seems reasonable on the surface, the record label would charge the artist for far more than what the record label supplied. The record label would not just bill the artist for the important things mentioned above, but they would subtract artist royalties for damaged items, record club discounts and a wealth of other expenditures. In addition the record label would take these deductions from the artists’ gross revenues.
Although the record label would enable an artist to audit the record business’s books, many artists didn’t perform any audits. Artists were typically afraid of angering the record labels by asking the record identifies to show the expenditures and deductions in composing. This sensible worry kept artist’s in their place– under the record labels’ control.
Today with digital innovation, the power is shifting into the hands of the artist
There’s a brand-new trend in the music company that has record labels sweating in the boardroom. This brand-new trend is called “Do It Yourself” (D.I.Y.). With Digital Technology anybody can start a record label and have an individual studio on their computer. There are a variety of totally free or (very low-cost) studio recording software application applications that allow an artist to record and disperse their own fabric without the aid or control of other record label.
An artist can easily promote and offer their CD’s and MP3’s online at countless internet websites. In addition there are numerous new webhosting services that permit an artist to have a website committed to promoting their and offering their music to the growing online community.
There are numerous artists earning a living selling their music online. Think about it, if you offered 20,000 CD’s online at $10, you ‘d earn $200,000. If you sold 20,000 for a record label you ‘d be in debt and you ‘d deal with the danger of being dropped from the record label.
By tape-recording, distributing, promoting and selling your music yourself, you manage your destiny. Today an artist can control their expenditures, track their reductions and not reside in worry of any record company.
Today the power is in the artist hand of the artist’s.