MUST READ Courtney Love does the math The controversial singer takes on record label profits, Napster and "sucka VCs.

[Dave Farber <dave () farber net>]

This is an intreging article that explores the economics of the record
industry. It is a must read.

Dave

Courtney Love does the math

The controversial singer takes on record label profits, Napster and "sucka
VCs." 

By Courtney Love 
- - - - - - - - - -


June                                                                 14,
2000                                                                 | Today
I want to talk about piracy and music. What is piracy? Piracy is the act of
stealing an artist's work       without any intention of paying for it. I'm
not talking about Napster-type software.

I'm talking about major label recording contracts.

I want to start with a story about rock bands and record companies, and do
some recording-contract       math:

This story is about a bidding-war band that gets a huge deal with a 20
percent royalty rate and a       million-dollar advance. (No bidding-war
band ever got a 20 percent royalty, but whatever.) This is my "funny"
math based on some reality and I just want to qualify it by saying I'm
positive it's better math than what Edgar       Bronfman Jr. [the president
and CEO of Seagram, which owns Polygram] would provide.

What happens to that million dollars?

They spend half a million to record their album. That leaves the band with
$500,000. They pay $100,000 to       their manager for 20 percent
commission. They pay $25,000 each to their lawyer and business manager.

That leaves $350,000 for the four band members to split. After $170,000 in
taxes, there's $180,000 left.       That comes out to $45,000 per person.

That's $45,000 to live on for a year until the record gets released.

<snip>


http://dir.salon.com/tech/feature/2000/06/14/love/index.html

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