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RIAA Accounting: How Labels Avoid Paying Musicians

Anonymous Coward writes | more than 4 years ago

1

An anonymous reader writes "Last week, Slashdot posted Techdirt's story about "Hollywood Accounting" which showed how movies like Harry Potter still officially "lose" money with some simple accounting tricks. This week, Techdirt is taking on RIAA accounting, and showing why most musicians (even multi-platinum recording stars) may never see a dime from their album sales. The major labels basically give you a loan, but then demand the first 63% of any dollar you make, get to automatically increase the size of the "loan" by simply adding in all sorts of crazy expenses (did the exec bring in pizza at the recording session? that gets added on), and then tries to get the loan repaid out of what meager pittance they've left for you. Oh, and after all of that, the record label still owns the copyrights. The average musician on a major record deal "gets" about $23 per $1,000 made... and that $23 still never gets paid because it has to go to "recouping" the loan... even though the label is taking $630 out of that $1,000, and not counting it towards the advance. Remember all this the next time a record label says they're trying to protect musicians' revenue."
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Well ya (1)

Midnight's Shadow (1517137) | more than 4 years ago | (#32890312)

If they screw over Darth Vader [timesonline.co.uk] what do you think a bunch of musicians are going to do?
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