I respect Mr. D.i.c.k. Dale’s approach to the music business. You can hear the man provide you everything you need to succeed (on your own terms) in the music biz, in this video. All gratis from the man who knows:
D.i.c.k.?
Since when is Steinberg an US - american company?
They are a multi-national conglomerate.
Well, that’s one one of doing it, but there are many sorts of music where this won’t work.
BTW he is wrong about some things; for example not earning a dime with a record label is not true, because as soon as your music is broadcast, you earn Pro Royalties, and the record company can’t take that away from you. Unless you are not the writer…
DG
(1) Acquaint yourself with the way ASCAP and BMI calculate and distribute those royalties.
(2) Realize the odds of an independent artist achieving any significant airplay, in the highly consolidated media outlets, are even worse than the odds of winning the lottery.
(3) The most successful independent artists have built their business following the model of Mr. Dale.
(4) Signed artists (not independent) are most often treated like commodities by their corporate record industry pimps. Commodities with zero clout and only a six-month shelf life.
There are always exceptions, but that’s the state-of-play for most.
Irrelevant for people outside of the US. I’m a member of PRS.
People signed to record companies are not independent artists, so this is irrelevant.
Again, you are talking about independent artists which is not the point I was making. In any case, only some parts of the market place can behave like this. If an orchestral composer had to pay for the orchestra every record they made, they would very quickly become bankrupt without the record company or Publisher.
However, they often get advances, which if they are unsuccessful don’t have to be paid back. BTW if they only have a 6 month shelf life, chances are that they were cr*p in the first place. 
I can tell you from my experience of the commercial music scene, the only people who complained about the record companies were the successful musicians, because they were subsidising the rest of the unsuccessful ones Of course the real problem (which is sort of what this thread is about) is the whole streaming issue, which I agree is a problem.
DG
DG,
You might find this book interesting:
Hit Men by Fredric Dannen
Yes, I’m aware of that book, and within the very limited parameters of investigation and an obvious agenda of the writer, it is quite good.
However, that doesn’t alter anything that I’ve written about in this thread.
DG
The book illustrates, with bona fide real-world examples, how a signed artist can sell lots of records and receive zero royalties.
It also recounts how new artists have signed record contracts, sell hundreds-of-thousands of units, and end up owing money to the record company. Thus having to provide new material for subsequent releases for which the company recoups from the first proceeds (both sales and performance royalties). Many examples of multi-platinum artists that don’t start seeing any money until their third big hit.
As far as not having to pay back advances if you’re a flop … so what? If a 5-piece band gets a $75,000 advance against future sales/royalties, it isn’t going to carry them very far. If the record fails to hit contractual goals, their careers are more-often-than-not finished. Those contracts often had massively inflated production, SG&A, and “artist-management” fees charged against the artists future earnings. Even so, the record company can still break-even or turn a profit on poor selling artists and gobble up all future proceeds from sales, royalties, and publishing in perpetuity. The artists (even if they were able to retain their publishing) get nothing, and have no prospects to ever earn a dime on that music.
That’s the point I’m making. That’s the playing field in the United States. Your mileage may vary.
swamptone, I’m not disagreeing that these things used to go on in some instances. All I’m disputing is the very narrow view of the profession that your comments paint. Also, please remember that the USA is not the centre of the universe and in other countries things like Royalties are more fair in many ways.
DG
Just because I haven’t extolled ANY of the virtues of the music biz, doesn’t mean I’m taking a narrow view of it. I’m sure those earning a living from it are pleased.
I can be as optimistic as the next guy! Heck, I’m willing to agree that the glass is only half-full of corruption, rather than half-empty of corruption. Or is it the other way around?
I never said that any particular place is the center of anything. I don’t know how it’s done elsewhere, only hereabouts. Maybe folks over your way can sign some of us great unwashed 'mericans to lucrative recording contracts; we have talent and good work ethic. Probably be good for both sides of the exchange. Of course you’d also have to spend billions on media outlets to promote your artists … that would mean securing broadcasting licenses from the corrupt US government (who do think they are the center of the universe) … or … maybe I’m just a little jaded after knocking around this music-biz lunacy after 40 years of bar gigs.
Over and out. Good luck and much success.
Each story is unique but for the most part some companies got away with it by being corporations and claiming that they were not making money in ad revenue. Just like many music services who have come and gone bankrupt.
There’s still lots of money to be made in the music business.
Anyway… For a good understanding of the current state of the music business:
Great thread!
Lot’s O’ good info via off board link reading.
Tanx guys.
{‘-’}
My problem is not how much money I make from my tunes but how much I have to pay other people to listen to them.
Here is an interesting article:
Right. “Pay to play” and stuff like that.
Horrible practices if you ask me.
Not as irrelevant as you might think. The PRS collect royalties on behalf of their writers for North America region from either ASCAP or BMI (as a writer you can inform PRS which one you’d prefer they work with)
I’m based in the UK with PRS myself.
My cynical, black-humoured self wonders what some people would pay to have their stuff heard… How about this…
Payola.biz would appear and show the top 20 most paid-for spots… Something like ’ John Doe paid $100,000 for his song ‘Blooble Shnooble’ which puts him at number fifteen this week’
or…
‘Instead of getting the heart transplant Martha has been saving up for, she blew it all on her cover of "Having my Baby… Coming in at number eight this week at $250,000…’
or…
How about a speciality chart for petro-nephews called ‘Olig-Arts’ ?
I think I’ll pitch this to Kleiner Perkins
No platinum selling artists this year. Sales are down by 4% this year. All hopes are on Taylor Swift with her new Pop Album. Certainly not like the 90’s when some artist certified over 10 x platinum. Now the industry is worth 15 billion / year. Nearly 50% down.
The year’s top-selling album is the soundtrack to a Disney movie.
Funny the CEO of Groupon is a 30 something musician and last I checked Groupon is worth around 50 billion.
More than the music industry 
There’s 42 revenue streams in the music industry:
Quite incredible. Thanks for posting this.