Royalties in the record industry essays & term papers     

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Royalties in the record industry Free Essay, Term Paper and Book Report

Royalties In addition to global exposure and fame, the biggest reason for signing a recording contract is to get paid for your music. The record company will record your act, master it, produce the recording or "album" (refers to CDs, tapes, etc.) and sell them through record stores. You get paid a percentage of each album sold. This percentage is known as a royalty. There are other ways for musicians to make money (see How Music Royalties Work for details), but royalties on the sales of albums is the main source of money coming from a recording contract. The percentage that you receive for each album sold is a negotiating point, but typically it can fall anywhere between 10% and 20%. Most new artists get a royalty percentage at the low end of the range, and 10% is common. A royalty deal seems simple enough. If a CD sells for $15 and the royalty percentage is 10%, the band should get $1.50 for the sale of each CD. If your first album sells a million copies, your band should get $1,500,000. What's not to like about that? The first thing to keep in mind is reasonable expectations ......

Word Count: 3486
Page Count: 13.9  (250 words a page / double spaced)


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