Quote:
Originally Posted by kane
1. Aerosmith. I mentioned them above. They signed a deal that gave them $10 million in advance money per album. They spent a ton of money producing those albums because they would live big, stay in nice places, record in exotic locals and bill it all to the label as production costs. The sales of their royalty share of the record sales never covered those costs yet they toured the world in stadiums and made millions.
2. No Doubt. When they were at the height of their fame the got a deal similar to the Aerosmith deal. They would do things like go to Jamaica for a month to record and bill it all to production. Their royalties never covered that amount, but they sold out stadiums world wide and banked tens of millions of dollars from it.
Again, I'm sure their are others.
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wow so your using an example of an ESTABLISH artist who is already playing 25k venues squeezing the record company for a fair deal
or a band trying to get their record company to release them by artificially inflating the cost obligations as a justification for your bogus story
look at it again
Quote:
Originally Posted by kane
Major Label Artists ends up having $2million dollars worth of production and promotion put behind their album. They sell 2 million copies of that album, but still don't make enough to pay back the studio. However, they score a top 10 hit single so they are making some great money off of performance royalties from radio stations. They might license the music (if they own the publishing) and make more. Where they will score big is touring. A record that sells like that will have them playing a summer festival circuit followed by a ton of holiday large scale shows where they play radio station concerts, music festivals etc. By the spring they will have likely opened for a larger act and are now headlining their own tour and playing in front of 1,000 -2,000 people every night.
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1. record company invest 2 million dollars
2. they sell 2 million copies
3. they don't pay back the record company
4. however because of all that promotion they pull gigs on the summer festival circuit
5. followed by radio station concerts, music festivals etc.
I have been looking for an example of that for years
i have never seen it
no record company has ever plowed money into the promotion of an unknown band
every band had to go thru years of paying back all advances BEFORE they ever got the push that would allow them play major stadiums and ONLY then did they ever get an advance so big they couldn't pay it back.
In all the years i have been looking into this, with all my friends in the music industry, not one person has shown me the chain of events you described in your little story.