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Music Business Past Vs. Present

Posted by Streaming Music | Posted in Music business | Posted on 01-10-2009

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Back in the day, the music business has been controlled by the major record labels. The record labels controlled everything in an artist’s career from start to finish. The record label would control and musician image, airplay, access to audits, like ness, royalty rate, success and everything in amidst while under the record label contract. When the musician career has been over, the musician again and again didn’t have anything to show for their hard work and creativity.

Back in the day, the record label would finance artist’s project up front in the form of an advance. The advance frequently amounted to a loan which the performer had to repay. The record label would finance the recording, distribution and promotion of the performer project and then “recoup” the resources after the project started selling. Although it seems fair on the surface, the record label would charge the performer for much more than what the record label offer d. The record label would not only bill the performer for the things mentioned above, but they would deduct performer royalties for damaged wonderful s, record club discounts and a wealth of other costs. In addition the record label would take these deductions from the musicians’ gross earnings.

Although the record label would allow an performer to audit the record company’s books, a lot of performers didn’t conduct any audits. performers were generally afraid of angering the record labels by asking the record labels to show the costs and deductions in writing. This justifiable fear kept artist’s in their place – under the record labels’ control.

Today with digital technology, the power is shifting into the hands of the artist

There’s a new trend in the music business that has record labels sweating in the boardroom. This new trend is called “Do It Yourself” (D.I.Y.). With Digital Technology everybody might start a record label and have a individual studio on their PC. There are a number of free or (very inexpensive) studio recording software applications that allow an artist to record and hand out their own material without the endorse or control of any other record label.

An artist can quickly  encourage  and sell their CD’s and MP3’s On-line at thousands of Web website s. In addition there are many new Internet hosting services that allow an artist to have a website dedicated to promoting their and selling their music to the growing On-line community.

There are hundreds of artists making a living selling their music Web. Think about it, if you sold 20,000 CD’s Web at $10, you’d earn $200,000. If you sold 20,000 for a record label you’d be in debt and you’d face the risk of being dropped from the record label.

By recording, distributing, promoting and selling your music yourself, you control your destiny. Today an artist can control their costs, track their deductions and not live in fear of any record company.