PDA

View Full Version : Jobs is savior of music industry


MacBytes
Jan 23, 2004, 09:01 AM
Category: News and Press Releases
Link: Jobs is savior of music industry (http://www.macbytes.com/link.php?sid=20040123100129)

Posted on MacBytes.com (http://www.macbytes.com)

Approved by Mudbug

1macker1
Jan 23, 2004, 09:52 AM
You have got to be kiddin! Who cares about the music lables, the artists are still getting the short end of the stick.

michaelrjohnson
Jan 23, 2004, 11:23 AM
i beg to differ. as an artist (not music) i am aware of the whole payment issue. music artists, at the guiding hand of labels have become very greedy. they are not promoting their art, they are pushing their cd's for profit. there is a very big difference.

the labels are VERY greedy, many music artists are only in it for the $$.

beyond that, i DO believe that iTMS has helped reduce the stigma attached to downloading music and has made it mainstream.

winmacguy
Jan 23, 2004, 12:52 PM
Originally posted by michaelrjohnson
i beg to differ. as an artist (not music) i am aware of the whole payment issue. music artists, at the guiding hand of labels have become very greedy. they are not promoting their art, they are pushing their cd's for profit. there is a very big difference.

the labels are VERY greedy, many music artists are only in it for the $$.

beyond that, i DO believe that iTMS has helped reduce the stigma attached to downloading music and has made it mainstream.

I totally agree, if the likes of Sony and EMI want to survive and succeed they could try taking a smaller cut from the cost of a CD so that we as consumers can pay a more reasonable price for CDs. That way we would be so inclined to want to get them for free. After all blank CDs themselves only cost around 50c each and the artists only get paid around $1 of every one of their CDs sold.

sethypoo
Jan 23, 2004, 01:00 PM
I think "savior" is a little too strong of a word to use. I would say that he certainly helped things (him and the hundreds of programmers that worked on the iTunes Music Store project).

Sabenth
Jan 23, 2004, 07:06 PM
Well itms helped music become even more avalliable online and around the world. Jobs did the hard work everyone else just followed suite that = why Apple has the best deal with its drm...

After reading the other story about how apple was given 6 months to get 1 million hits LOL
:D

nuckinfutz
Jan 23, 2004, 07:33 PM
and the artists only get paid around $1 of every one of their CDs sold

Actually most artist receive less than a buck for each CD sold. When the label recovers recoupables like Studio Time and Videos the artist is left with perhaps a half dollar on every CD. They must make ends meet with concerts. Hence the rising costs of seeing live music nowadays.

The music industry is still in trouble. iTMS has 500,000 songs and that's not nearly enough to replace Kazaa or gnutella networks offerings. We need to race to 2 Million songs. We need much more representation than what the Big 5 control we need Indie Labels and more International Artists.

MrMacMan
Jan 23, 2004, 08:23 PM
Blah blah blah.

Not going to generate enough money to call any download store a savior.

Blah Blah.

michaelrjohnson
Jan 23, 2004, 11:26 PM
Originally posted by nuckinfutz
Actually most artist receive less than a buck for each CD sold. When the label recovers recoupables like Studio Time and Videos the artist is left with perhaps a half dollar on every CD. They must make ends meet with concerts. Hence the rising costs of seeing live music nowadays.

The music industry is still in trouble. iTMS has 500,000 songs and that's not nearly enough to replace Kazaa or gnutella networks offerings. We need to race to 2 Million songs. We need much more representation than what the Big 5 control we need Indie Labels and more International Artists.

you apparently have more knowledge regarding the issue than i do, so i concede. ;)

as for your second paragraph, yes i do believe that iTMS needs more 'tunes. but we all know that will happen with time. there is a lot of music in the world and apple does need to keep REvolutionizing the online music industry in order to keep iTMS on top. 2 million songs is a great target number

Pseudonym
Jan 24, 2004, 03:01 AM
One of the huge benefits of the internet is the ability of smaller stores to compete against the larger ones. Go to the high street and only the large stores are there, go on the net and you can buy your stuff from the smaller company on the other side of the country. I have bought lots of stuff I never knew was out there from small companies who could never afford to advertise widely.

iTMS does a similar thing because it puts the big labels on the same footing as the smaller independants. Once you are on iTMS you have the same exposure and people can get your stuff really easily. THAT is something that might save the smaller labels.

OK, I care less for the larger ones but a legal download does mean that less illegal sharing is going on. 99c is a good impulse buy so I guess the sales will eventually go up as you dont have the hassle of going to the store or waiting for the post. A small sum and you've got the music. Soon you've run up $26000 like the guy mentioned at MWSF (or maybe not!).

I think iTMS will change the music industry a lot. Hopefully more smaller artists will get exposure and music will get more diverse again.

Photorun
Jan 25, 2004, 07:50 AM
Originally posted by michaelrjohnson
you apparently have more knowledge regarding the issue than i do, so i concede. ;)

All you guys are way off, the record companies SCREW the actual recording artists, that is, the true people who do it for their craft. Sure the Britneboybandaerosmitallica types who have the clout to actually NEGOTIATE contacts probably make a pretty penny, however, they're in the minority, the quarter of one percent minority.

Take a look at an average recording contract for a band and watch those number fall (and see how the record companies roll in dough and the musicians get hosed):

Advance: 250,000
Manager cut: $37,500
Legal fee: $10,000

Recording Budget $150,000 (this doesn't go to the musicians but producer, studio, tape, lodging, etc.)

Video Budget: $50,000 (small change, this is for a band that the record company as stipulated by the label has to make a video to make them "appealing," mind you, unless you're A1 marketing pretty material that video will never make it on the air as most don't, and it's not like MTV plays videos anymore)

Album Artwork: $5000 (including photographer)

Band Fund:$15,000 (this is a line item that goes to buying nice shiny new equipment for the band)

Tour Expense Fund (5 weeks): $50,875 (bus, crew, per diems, etc...)

Total Gross Income: $50,000
(Agents cut: $7500, Managers cut: $7500)

Merchandising advance: $20,000 (more fees come out of this, about $5000)

Record sales: 250,000 @ $12 (pre store mark up) = $3,000,000; royalty $13% about $351,000
less advance: $250,000
Producer kickback: $40,000
Promotional budget: $25,000
Misc. Fees by label: $50,000
Net Royalty: -$14,000

Record company income:
wholesale CD price: $6.50 X 250,000 = $1,625,000 gross
Royalty fees: $351,000
Deficit from royalties: $14,000
Manufacturing and distribution: $2.20 per record totalling $550,000
Gross Profit $710,000

The final numbers (how much who got paid)
Record company $710,000
Producer $90,000
Manager $51,000
Studio $52,500
Misc exp $50,000
Agent $7500
Lawyer $12,000
(finally)
Band member net income... $4031.25

Those are actual figures from just an average sample of record company contract how it pays out. The artist actually doesn't make jack crap from the big, fat, greedy, white, old rich guy record companies. Though it's nice iTunes brought the very reluctant music (most of which is crap) to the masses, the only true way to make it so consumbers got quality music and not this year's flavor (or flava) and that actual talented trying musicians got to get paid would be what I and many were hoping for, total anarchy, free downloads, and bringing down the antethisis of creativity that is the record labels themselves. Yep, send each one into bankruptcy. Personally I know some execs that I'd love to see out on the street to kick in the gut with a steel toed boot, probably is, there'd be a line.

nuckinfutz
Jan 25, 2004, 01:07 PM
Britneboybandaerosmitallica

:D OMG ROFLMAO you better trademark that!

you apparently have more knowledge regarding the issue than i do, so i concede

Barely more Micheal. Back in his heyday MC Hammer actually go a nice contract and made a buck an album. That's how he became worth 20+ Million with large album sales. Sadly how many artists will ever know that kind of fame?


Right now the Online Services have to pander to the Big 5 but what they all need to do is sign up as many Indy artists as possible. You never know what the Big 5 will do in the future. Sony is going to be selling their own music online who's to say they don't pull the plug on other services for their artists?

What we need is a proliferation of Internet Radio stations to expose us to Indy artists who also have their tracks on the Online Services.