iTunes Chart-Toppers (a/o February 21st):
That is, according to federal court documents filed Wednesday by attorneys for Chuck D. The detailed breakdown shows that for every 1,000 iTunes downloads sold, a UMG-signed artist gets paid $80.33. And that's after the label collects on a 25% 'Container Charge for Audiophile Records,' as well as a 15% 'Net Sales Deduction'.
Which means that for every one download, the payout is roughly 8.033 cents.
Which is wildly different than the payout from someone like Tunecore, which pays the full 70-cents. That is, after yearly fees, and without any of the marketing push, but that's another article entirely.
Actually, the ringtone payout is loaded with even more artificial ingredients, including the same 'Audiophile Packaging Deduction'. In fact, despite a much higher price tag on ringtones (ie, $3 listed here), the major label artist gets a paltry per-ringtone payout of 5 cents.
Comments Closed
@RapCoalition Thursday, November 03, 2011
Wendy Day
And ONLY if recouped!!
Omega Johnson, Hero For Hire Thursday, November 03, 2011
The Lord giveth. The Label taketh away... every time.
@DancehallSoca Thursday, November 03, 2011
DancehallSoca
and I make 5 cents on every 99
@Jebb4jebm21 Thursday, November 03, 2011
Julie Barela Mills
The Ugly Truth!
Fretts Friday, November 04, 2011
It's only fair now if artists begin charging a "Creation Fee", a "Stylistic Integration Fee" and a per-song surcharge of 30% of gross for "Fashion Adaptation Services".
Lost John Wednesday, November 09, 2011
I like your style.
@brittneybean Thursday, November 03, 2011
Brittney Bean
Is everyone going to start asking 'what does apple pay artists?' instead of banging on about spotify?
Cliff Baldwin Thursday, November 03, 2011
Apple doesn't pay artists. Labels do. And outside the U.S. collection socieities do (or are supposed to). Apple is a retailer like a grocery store. They buy music wholesale and sell it retail. They buy a song for 70 cents and sell it for a dollar. They use the 30 cents to pay employees, keep their massive rooms full of computers running in 20 countries, and pay people to deal with the labels, who are obviously very high maintenance.
David Wilson Friday, November 04, 2011
Well done, Cliff, exactly right.
wallow-T Sunday, November 06, 2011
Cliff wrote:
"Apple is a retailer like a grocery store. They buy music wholesale and sell it retail. They buy a song for 70 cents and sell it for a dollar."
Not exactly, because a grocery store (and the old music business) is physically transporting heavy, tangible things.
Apple has custody of a copy of a pattern of bits which represent a song. They transmit an exact copy of that pattern of bits to the customer. Apple has agreed to pay the label 70 cents every time Apple transmits the bit pattern to an iTunes customer.
(Hmm, sounds like a license... :-) )
LostJohn Wednesday, November 09, 2011
Agreed. that's a license. the idea that apple is "buying" from artists and labels and retailing is just not true. They pay per sale. If they were retailers they would be paying $X up front for the opportunity to sell product however they want. Making returns etc.
MDTI Thursday, November 03, 2011
nice numbers. It means approximately 29.2% from gross to net income. But I found 80.74 as the final result, using the given numbers, unless I (excel) have made a mistake :-)
mdti Thursday, November 03, 2011
for the downloads i mean
@NuGoth Thursday, November 03, 2011
br1te
Apple 30% | Artist 8% | Label 62%
Fair?!?
mdti Thursday, November 03, 2011
the 30% include vat + online shop fees .
Visitor Thursday, November 03, 2011
1pt on a digital album nets 8 cents. so this math works on a single 99 cent song as well.
A 12 song album pays 96 cents, plus another $1.09 for publishing. So all in a major label artist makes about $2.00 per unit of the $7.00 wholesale.
From the remaining $5.00 the label has to cover all overhead, salaries, marketing, promotion, rent, phones, advertising, everything.
do the math, how many album do you need to sell to break even on one album with a $100,000 label investment... for those who suck at math, that's 20,000 units... and sadly only 2% of albums released annually sell more than 5,000 units...
http://www.digitalmusicnews.com/stories/072010nms1
so I'd love to see the genius new model that is more fair...
mdti Thursday, November 03, 2011
in a world where promotional expenses guarantee the sales, then a diy artist who sales 200K unit sale could have invested a little less than 119K and make the same revenue as an artist signed with a major (21.4K). this takes into consideration above figures for download + 50% for ringtones and other revenues.... but that's just math, not sure investments always gurantee results...
Visitor Thursday, November 03, 2011
you are correct, it's most likely 100% of a labels investment in an artist will be lost as only 2% of albums released sell more than 5,000 units... it is insanely unlikely a DIY artist could sell 200k units from a 119k investment...
MDTI Friday, November 04, 2011
I agree...
What all that shows to me is that diy or major, there is not much to expect from selling digital media only.
Would be great to find financial breakdowns for a typical (big) live show :-)
it is not a matter of ONE choi Friday, November 04, 2011
You can't reject a business opportunity just because it can't fully support you. You have to diversify. Make money from A, B, C, D.
iTunes is a logical choice for indie artists who take care of their own publishing.
gaetano Wednesday, November 09, 2011
The gross numbers for a "big" live show, while impressive, many times also go through the same meat grinder as we see here with media sales. There are an exorbitant amount of fees and expenses that go under the radar, the largest being insurance.
It can cost well into six figures to insure a large show, festivals? forget it...
One would assume that it's also possible to recoup a lot on merchandise sales, however many venues will take 15-20% of your merch sales as well.
Add inherent production costs, local crew (many times union workers), even just the fluctuating price of gas can teeter things into the red for even a well established band.
Oh yeah, then people actually have to show up.
(and god forbid the singer gets food poisoning the night prior)
Ed Thursday, November 10, 2011
Give me a break.. most of the revenue comes from selling tracks or albums that are decades old, and the same music that has been repackaged over and over and over again in different formats.
Cry me a river. You can't take a single album/single artist in isolation and cry poor over operating costs of the business. It doesn't work that way. Plus the same salaries, phones (operating costs) etc are used to support the entire clientele (do you pay salaries to staff per artist or band? No, don't think so).
Most of the revenue from established bands cover the investment in new ones. Then there's merchandising, concerts.. Don't get sucked into the Music Industry's bullshit propaganda. They do just fine.
Genius enough for you?
@heytherekarlie Thursday, November 03, 2011
Karlie Keaveney
Stealing!
Emy Thursday, November 03, 2011
The joy of being independent artists: You get most of the money, especially publishing.
The Insider Thursday, November 03, 2011
What an artist makes and what an artists gets paid on are two entirely seperate conversations and meanings. In the above-referenced documents, UMG is shown to have a container deduction of all things. In respect of digital releases, items such as "net sales", packaging deductions, returns, reserves, etc. are neglible, yet UMG still appears using these items in their baseline calculations of revenue derived from sales of phonorecords. Whether this is intentionally done or just overlooked will be for the judge to determine.
@HugeAu Thursday, November 03, 2011
Huge
And the majors wonder why they're in trouble
mdti Thursday, November 03, 2011
wondering what are "audiophile ringtones".....
@RobChianelli Thursday, November 03, 2011
Rob Chianelli
so everyone go buy an album today!
@MikeSheaAP Thursday, November 03, 2011
If you're a musician - read this
@RyanAudition Thursday, November 03, 2011
Ryan O'Connor
DIY my friends! DIY
@SoThenSimonSaid Thursday, November 03, 2011
Simon Alexander
This is mindblowing.
#SaveTheMusic
@BoazSays Thursday, November 03, 2011
Boaz Sachs
Make a lot less via Spotify
bring tha noise Friday, November 04, 2011
Spotify is a stream. ITunes is a download. If you haven't figured why these two distribution systems pay differently then you are definitely in the wrong business. What, 15 years wasn't enough? Please GTFO of the way so young people with ideas and drive can achieve something.
it's called streaming Saturday, November 05, 2011
Spotify is a streaming platform, not a distribution system.
Visitor Wednesday, November 09, 2011
To the consumer, it's a distribution system. It can be accessed at home, in a car, on your phone or other wireless device. Spotify calling itself a "music discovery tool" is a sham. It's an almost free on demand music player.
That's also ridiculously easy to rip/record content from.
@SSDC1166 Thursday, November 03, 2011
Alan
That's ugly!
ArtMeansNothing Friday, November 04, 2011
Rod S. Friday, November 04, 2011
Paul, it's a bit awkward to mention Tunecore as "the" positive example in every second article. Just saying.
@dtwalsh Friday, November 04, 2011
Deb Walsh
Occupy this
@L4M Friday, November 04, 2011
Josh Kaplan
Awesome!
@thornybleeder Friday, November 04, 2011
Brian Thompson
still want to get signed?
Steve Friday, November 04, 2011
Right Brian....! They still want to be signed to the Majors....sad all around.
@K15music Friday, November 04, 2011
...K...
If this is true, its pants
@lloydmobile Friday, November 04, 2011
Steve Jennings
email sjennings@101d.com to get .70 per
CTyankee Friday, November 04, 2011
Hey, kids: In case you were wondering, major labels still screw artists bad with evil contracts. But don't worry, everything's great with that 360-degree contract you just signed.
Dirty lawyers get paid a lot to do this. I want my digital transparancy!
Visitor Friday, November 04, 2011
you can have your digital transparency, and you can keep 100% of your rights, etc - you can also invest 100% of the money to build your career.
there's nothing any more evil about a record label contract than there is in a 30 year fixed rate mortgage. it's a business transaction, and if it doesn't make sense for you, DONT DO IT.
AnotherVisitor Monday, November 07, 2011
... except that when I've finished paying back the "advance" from the mortgage company I own the house. Do artists get all the rights to their works back once they've recouped? Nope!
bring tha noise Friday, November 04, 2011
Don't worry everyone, SOPA will make all the butthurt go away. It's just the ticket! UMG basically wrote half the law for the government anyway, and it obviously knows what's best for all music creators in existence.
Go Chuck! There's a nation of millions who've got your back.
Brooke Wentz Friday, November 04, 2011
First, the word Audiophile is suspect here. Secondly packaging deductions on digital files have been suspect for years, and is an antiquated cost that goes back to making LPs.
Thirdly, the rate Chuck is getting is based on his initial negotiated royatly rate when he signed with the label. He'd have to go back and re-negotiate a deal, but if this song with with Public Enemy, good luck!
More to point out is the WRITER of the song is receiving more money, since the statuatory mechanical rate is $0.091/song.
'Packaging' deductions on a ring tone is absurd. The label contracts are antiquated and lawyers need to get up to speed. Good work for a bar-passing groms?
Chunk Friday, November 04, 2011
What I am reminded of everyday working in the live concert biz is that those bands that sell enough records through the majors can demand enormous live fees. Much more than an Indie could ever expect to make from their little bit of music sales. Playing live is fun too and Majors need to sell so they have you out playing music live everyday if they can. There is a bright side.
MDTI Sunday, November 06, 2011
Thanks for the reminder :-)
Peter Bliss Friday, November 04, 2011
This is the percentage share after recoupment thas has been the rule forever with major labels. Now there are alternatives for artists to self-release or make independent associations for distribution. The big missing element is the $$ for marketing and promotion to make something that starts a spark to catch fire.
www.newyorksongwriterscollective.com
MDTI Monday, November 07, 2011
marketing is not about amounts of money. One could spend 10 millions dollars and still sale not more than 12 copies of his single (well, that would be a good story ;-).
Another can invest very little, and do something that breakthrough because it is cleverly done.
What cost in any case is to rent a promo agency to use their contacts with radios to get on their playlists and newspapers/websites.... in this field, prices can vary, but i would retain something like 1500 per month during 3 to 6 months.
video clip is important: in FR, it is hard to go below 10K€ when you rent a video agency, which is already very low when you think about all the people that have to get paid.
The other solution is to buy a camera and do it yourself, but then, it is about talent, originality etc... but that can make more than 1 million views on youtube (it happened several times here in FR).But it still does not guarantee sales that can compensate.
You could also tour like mad doing gigs, festivals etc.... this is what quickly brings followers/fans, but it is still a long road to make a living with it.
The solution is to do your thing, be creative, have fun, and if you invest in promotion, do not expect anything in return.
A label who develop an artist/band know that result may not come before the 3rd or 4th album, so it is a long run.
Visitor Monday, November 07, 2011
please post the link to your highly successful band that is employing that strategy and charting in the Top 200.
MDTI Tuesday, November 08, 2011
I was just stating basic prices, not strategy... that's the prices you will find if you contact the various agencies in FR. You can find cheaper in local areas, like 2nd zone cities etc.
For a link, you may not know kamini
http://www.dailymotion.com/video/xdyi9_kamini-marly-gomont_music
it's not the original video, but he made like more than 1 million views in 3 weeks in summer 2007. he probably totalled 3 millions by september 2007.
3 month later, universal contacts him and puts 100K€ in remaking the music, the video, and the album. According to universal FR representative, they have sold around 111K€ of the album and were very disapointed (i told them that it was normal because everyone had the song already, and what is fun is that it is self made....oops, ceo stare at his choose as his mind drifts away")... the universal version sucked because too clean and looses all the charm of something made spontaneously and out of any company).
Why didn't they made another one to continue tyhe story rather than trying to (badly) repeat it for themselves ??? this is like the mysteries of the pyramids... were they made by alien who don't think like us earthling ? is there a superior forces that commands us to do weird things ? i don't know ;-)
at the end of the story Kamini himself makes less than 10Keuros, the second single doesn't sell (less fun, made by a major company in completly "whore attitude") and so he goes back to his original trade of nursing and doesn' want to pursue anything in music professionally.
But he was largely in the top 200....
Without universal taking over, may be he would have scored higher (because he was "the " thing during 3 months"), but he made it out of any strategy, just for fun, and on a subject that is completely out of the hip hop world but 250% in the french tastes....
but that was not the point of my previous post.
The point was that with small means, you can beat the top charters, and if you have a clear and solid strategy, it can bring you to the top while the same music with lots of money may fail (the example i gave contained both aspects, but I am sure you can find other more international examples).
MDTI Tuesday, November 08, 2011
Here is another example (I warn: you ARE LUCKY if you never heard that one, itis actually a NIGHTMARE)à.
But it is 2010 top charter and in the TOP 5 sellers of digital medias: René la taupe
http://www.youtube.com/watch?v=24pUKRQt7fk
René la taupe is a character invetented by two guys to sell as a ringtone. The cost of the video is time, and little money (they are in 3d for a while, so licenses of 3d software is completely compensated for a while by their previous projects... the cost is zero, just time (2 weeks) and an idea.
René la taupe begins as aringtone and is immediately successful amongst kids and they make quite a few bucks. They release the single and they make 80K€ in a couple of month.
René la taupe is so annoying but loved by kids that it is invited on TV shows and qstuff like that (a guy is in a "rené la taupe" suit and dances to the music during 1 minute :-o !!!
At some point a major steps in (for the single distribution and or production of an album).
René la taupe wins some important music award.
Since then, no news.... I hope he will never come back personnally :-)
MDTI Tuesday, November 08, 2011
from England there was also this 3d video of the little blue guy riding a space motorcycle and with a display of his wee wee, on a techno music that was became quite popular on youtube and phones but I don't have any link or number to give you.
MDTI Tuesday, November 08, 2011
and please note again that i was talking about "breaking through" , not about selling anything. all depends what you do about it after. but all the above stories are guenuine breakthrough that could have been used to build careers, and with a minimal investment that can be zero.
mdti Tuesday, November 08, 2011
oops sorry, kamini was actually promoting a 2nd LP in 2010, and now has a studio full of cool gear, so they actually managed to make something out of it... ;-)
Tim AUTMAN Saturday, November 05, 2011
Good Job!
benstauffer Saturday, November 05, 2011
According to that first calculation, they deduct the 25% Audiophile charge TWICE: once to calculate "Royalty Base Price" and a second time when they adjust his royalty rate from 24% down to 18%. While the deduction in itself seems fishy, this double deduction seems very questionable.
@RomainJeanticou Saturday, November 05, 2011
Romain Jeanticou
Why you shouldn't buy off iTunes.
Unknow Sunday, November 06, 2011
A: I have sold on Itunes since 2003.
B: the Style is EDM (Techno for you smart people)
C: I recieved at least .50 cents when I had my catalogue distributed by INgrooves.
D: I fired Ingrooves because they wanted a flat 200.00 a month to distribute my content. I can do that myself.
E: I fired all digital Stores except Djdownload, Itunes, Juno family.
F: I signed a direct contract with ITUNES and my label as of a year ago..no middle man.
G: I recieve far more than .50 cents sold with my own digital releases. Any artist that sign with my label recieves .70 cents on all of their sales. My label is abel to keep enough for its self to compensate for time and pushing of the releases.
BOTTOM LINE: Major artist are being screwed by the Major Labels. I wouldn't deal with a Major (As i have in the past) for any amount of money. They no longer controll squat. The Major artist should walk from these majors and start their own indi labels. If they have to pay back the Majors for advance money, they should smile, write the check and move on.
Otherwise, I have zero sympathy for the Major Stars who contiune to cry about Digital Downloads.
PartlyCloudy Sunday, November 06, 2011
Okay, so who are you?
MDTI Monday, November 07, 2011
It confirms what I've saw concerning ingroove.... I have some friends who were signed in, and still don't understand why they did and why they are still with them.....
Uknown Saturday, November 19, 2011
Well, don't get me wrong. Ingrooves does do a lot for already established A list Talent. They shop their choons to TV/Movie Houses, etc.
But for a mid level player like me, I'm not a David Guetta because I will not produce trendy tracks, Ingrooves was a waste of time once they changed their policy and started charging an additional 200 per month. They are still a good distribution company, if your A list.
I have enough juice on my own to sign directly with Itunes, Siruis/XM (don't have to use soundexhange) and cut out all middle men.
As far as "who I am". It is irrlevent. I'm a touring Artist/Producer who owns a Digital Label. I do not need Digital Music News for PR.
I'm just telling the fans of Digital Music News my experience.
Dickster Monday, November 07, 2011
Attorney Monday, November 07, 2011
Just for clarity's sake: any artist with proper representation will not suffer a packaging deduction for downloaded tracks, nor will the standard 15% "free goods" deduction apply to downloads. The applicable royalty rate for albums will apply to individual downloaded tracks as well.
All of the above are standard "gives" by a label in any negotiation. Chuck D, god bless him, is on a noble mission regarding the "licensing" vs "sale" argument on behalf of artists...but the economics of a downloaded track aren't typically as bad as described in the story.
Digital revolution records Tuesday, November 08, 2011
well thats beyond reason why,you would sign a contract that pays you less than 10% of whats rightfully yours and pays a producer more than the artist,here at digital revolution records we pay 55% to the artist minimum,its morally wrong to take more were all musicians here,come and join the new music industry http://www.myspace.com/digitalrevolutionrecords
Visitor Saturday, November 12, 2011
You're using myspace?? For the 'new music industry'? Seems somewhat anachronistic, no?
digital revolution records Thursday, December 01, 2011
Belive it or not myspace have been very acomodateing to us we were friends with tom at the begining of myspace, the end of the day its just a PAGE that you can find us and contact us easy on,a great place to test the water,we wish it was still as tom made it,we tryd facebook which is just a scam to get you to pay them cash to get people to click a like,myspace are happy for you to promote yourself never askd us for money,and always helpd us when we askd them for help,myspace has enabled us to release and promote some very experimental music,which we could never of released due to bugets,has made it poserble to pay much better rates,to these people,any other way would of resulted in losses,which dont help anyone.,and end your carriea
http://www.myspace.com/digitalrevolutionrecord
@TheJeneralTwit Tuesday, November 08, 2011
JenniferB
Interesting comments
Brownzville Wednesday, November 09, 2011
Thats some B.S., i not screwing my artists and producers like that!!
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