"The thing about quotes on the Internet is you cannot confirm their validity" - Abraham Lincoln
Love your signature!
Yawn. Most major songs are NOT performed by the songwriter. Should the people on the stage or playing in the band as well as touring not get paid, while someone who put notes on the paper should? Ridiculous.
A measly 12% of the cut to artists? Without the artists the labels would have no business or money! More money to artists, cut the labels out!
It seems that a lot of people are not getting the way this works.
Record labels used to earn a lot of money and deserve it too, because they were the ones taking the risk. If they spent $100K on a band to record an album in the studio and the album would be a complete flop, the artist wouldn't lose anything and the record company lost a pile of cash. So back in the day it was a logical model.
Then record labels got more cautious. They never started out with recording a whole album, just a single, maybe two. Then they would record an album. The money spent on the studio was a loan now, so the record companies want that money back out of the royalties earned. So record companies no longer deserve it that much in my opinion.
The model right now is:
30% of $25 to Apple (well deserved, because otherwise the other 70% of $25 would've never existed)
88% of $17.50 to record companies
12% of $17.50 to songwriters
Mind you that songwriters have the intellectual property. If Britney Spears covers Love Me Do by the Beatles (let's pray she never will) then the money still goes to John Lennon (his family?) & Paul McCartney. Not to Britney Spears and not even to the Beatles, because John Lennon & Paul McCartney wrote the song, not the Beatles and not Britney Spears.
So every time a song is played on the radio, or someone buys an album, the artist isn't paid every time. They never have and they never will.
The artist will be paid whatever deal they struck with the record company. It can be a fixed amount, it can be a percentage of the royalties. That's really up to them.
Artist make most of their money with performing live, doing commercials or things like that.
Record companies still make a lot of money, but with all the independent labels, that will hopefully be over someday.
Songwriters make their money based on record sales, iTunes downloads, iTunes Match access, Spotify plays, etc.
and the $25 is the basic package, you can pay for more if you want larger storage space.
That is not true. You can buy extra iCloud storage for an annual price, but iTunes Match never counts towards your storage space. It's always $25 a year.
One more thing I was wondering... What happens to the songs that are uploaded to iTunes Match, do they become property of Apple so they can be sold in the iTunes Store? Because that would be a smart (and nasty) way of expanding the iTunes Store content.