The Music Industry Pie

In: Culture

28 Mar 2010

I couldn’t find the original, so I’m not sure about these stats. Perhaps the related reddit discussion would be of interest to some. (via)

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2 Responses to The Music Industry Pie

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Jon Peltier

March 28th, 2010 at 12:53

This is what I dislike about the music industry. The artists, that is, the creators and performers, get the smallest piece of the profit. The record company, which provides almost no added value, other than packaging and advertising, gets the vast majority of the profit.

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Daniel

March 29th, 2010 at 18:25

Um, so no profit for the retailer at all then? Or the publisher? (they both profit from music sales, trust me).
And how does a booking agent get any income from a CD? (they don’t, they get income from live revenue, of which the record company sees 0% and in fact often funds the tour costs).
Charts like this about the music industry are ridiculously simplified. The royalty paid to the artist will depend on whether they’ve recouped their advance or not (most artists never recoup their advance, which is effectively a big interest-free loan to make a record, which you don’t necessarily ever have to pay back). And, the artist’s income is almost always skewed towards live and merchandise, over record sales. Money that they wouldn’t make (on any large scale) with the apparently paltry ‘packaging and advertising’ from the record company.
Clearly I’m biased- I work for a record company- but the perception of where the money goes in the industry never takes into account who does all the spending/ investment…

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