Jobs is savior of music industry

Discussion in 'MacBytes.com News Discussion' started by MacBytes, Jan 23, 2004.

  1. macrumors bot

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  2. macrumors 65816

    1macker1

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    #2
    You have got to be kiddin! Who cares about the music lables, the artists are still getting the short end of the stick.
     
  3. macrumors 68020

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    #3
    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.
     
  4. macrumors 68020

    winmacguy

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    #4
    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.
     
  5. macrumors 68000

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    #5
    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).
     
  6. macrumors 6502a

    Sabenth

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    #6
    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
     
  7. macrumors 603

    nuckinfutz

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    #7
    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.
     
  8. macrumors 604

    MrMacMan

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    #8
    Blah blah blah.

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

    Blah Blah.
     
  9. macrumors 68020

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    #9
    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
     
  10. macrumors regular

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    #10
    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.
     
  11. macrumors 65816

    Photorun

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    #11
    Less than a buck? Try a LOT less!

    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.
     
  12. macrumors 603

    nuckinfutz

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    #12
    :D OMG ROFLMAO you better trademark that!

    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.
     

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