A Major Label Artist Makes 8 Cents On a 99-Cent iTunes Download...

[thafonz]

A Major Label Artist Makes 8 Cents On a 99-Cent iTunes Download...
Thursday, November 03, 2011
by paul

Digital Music News - A Major Label Artist Makes 8 Cents On a 99-Cent iTunes Download...

That is, according to federal court documents filed Wednesday by attorneys for Chuck D. The detailed breakdown shows that for every 1,000 iTunes downloads sold, a UMG-signed artist gets paid $80.33. And that's after the label collects on a 25% 'Container Charge for Audiophile Records,' as well as a 15% 'Net Sales Deduction'.
Which means that for every one download, the payout is roughly 8.033 cents.


Which is wildly different than the payout from someone like Tunecore, which pays the full 70-cents. That is, after yearly fees, and without any of the marketing push, but that's another article entirely.
Actually, the ringtone payout is loaded with even more artificial ingredients, including the same 'Audiophile Packaging Deduction'. In fact, despite a much higher price tag on ringtones (ie, $3 listed here), the major label artist gets a paltry per-ringtone payout of 5 cents.

[steven creamer]

Corporate Greed, it's killing us

Stevie 2fingerz

[mrClaypole]

I cant see why an artist needs a label these days?. In this day and age why cant an artist offer a download for 99p per song or £7.99 for a whole album off their own website guaranteeing them the lions share of profits generated. Why hand over all of the hard work theyve put in for Apple to take the biggest slice of the money?.
Artists can still be a part of the M.U and Prs if they wish to be. But it seems the record compnay model has not changed much in the 60 years its really become established.
Music needs a new model and until someone speaks out and tries to change things and break up the cartels controlling the industry, artists are still going to be conned into thinking that the old way is best.

But it dosent take a genius too see that what money they make on a download isnt worth the effort of recording it in the first place.

[UK Warrior]

Originally Posted by mrClaypole

I cant see why an artist needs a label these days?. In this day and age why cant an artist offer a download for 99p per song or £7.99 for a whole album off their own website guaranteeing them the lions share of profits generated. Why hand over all of the hard work theyve put in for Apple to take the biggest slice of the money?.
Artists can still be a part of the M.U and Prs if they wish to be. But it seems the record compnay model has not changed much in the 60 years its really become established.
Music needs a new model and until someone speaks out and tries to change things and break up the cartels controlling the industry, artists are still going to be conned into thinking that the old way is best.

But it dosent take a genius too see that what money they make on a download isnt worth the effort of recording it in the first place.

What Mr C. Said.... mostly. The only possible reason why an act should still sign with a major is the fact that they have the best connections within the industry in terms of getting airplay etc. Indie labels are less connected, sadly.