How Record Companies SCAM Their Musicians
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- Опубліковано 18 чер 2024
- The day has come to make a video about the music record industry. In a billion dollar industry, somehow the talent walks away with very little. In this video, I share with you how money flows in the music industry, why your favorite musicians are broke, and why you'll constantly hear musicians complaining about their record deal or record label.
The central point of this video is the 360 deal, aka the 360 contract. This contract allows for the record label to dip their hands in everything an artist does. The record labels typically fool young and naive artists to sign a 360 deal when they have no leverage and are in need of the money.
They gladly accept the record advance because they've never seen money like that before. But it isn't long before they realize that the advance is recoupable, meaning the label will receive the money back through future royalty payments.
This is how artists can sell millions of albums and still go bankrupt. When they receive a huge advance, most artists want to go spend the money. But the label counts the advance as money that should be going towards production of the album. When the album is finally released, the label will get their cut first. Then from the artists' cut, the advance will be paid back.
In some scenarios, the artist isn't able to sell enough to pay back the recoupable expenses. This leaves the artist in debt to the label. The label will take the first profit from touring, merchandise sales, etc in order to recoup their money.
A vicious cycle can be created. Sometimes artists will even be shelved because the label no longer believes in them and doesn't want to invest the money into promoting the artist. The artist is now stuck with a signed record deal and they can't put out music.
Sources Used for Research:
-- www.digitalmusicnews.com/2013...
-- www.digitalmusicnews.com/2018...
-- soundcharts.com/blog/how-the-...
-- www.nme.com/news/music/30-sec...
-- www.ifpi.org/how-record-label...
-- hiphopandpolitics.com/2010/02/...
-- www.recordingconnection.com/r...
-- link.springer.com/chapter/10....
-- journals.sagepub.com/doi/pdf/...
-- • Napster Documentary: C...
-- www.rollingstone.com/pro/news...
--------- MY BOOK LIST ---------
docs.google.com/spreadsheets/...
Tags:
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This sums up the whole entertainment industry: "you have bright eyed people that create art, and people that take advantage of them"
Nope. You have ppl that have ideas but are not actually able to make a cool song because layering multiple instruments actually takes a lot of knowledge. You have ppl that have spent years studying but are old and fat and not fit for the pop industry and you have loans and new gear for the artist and the cut that the big arena owners have to make and the plain tickets of a 100 ppl staff and gear rental and the gear crew and omg, so much stuff. The artist really make what they are worth. Just listen to Hey there Delilah live and notice that without the string section it sound like that cool teenage boy in high school that can play a few love songs and not like a super star.
The Diminished hey there Delilah doesn’t have a string section? Or are you talking about them using strings in live performances
@@magmaman253 the song has one in the official video, but in some live situations, it doesn't. When it doesn't you can hear how the song is still good but not amazing anymore and why the artist is not worth millions. It's just a small example of course but you get the point
@@magmaman253 The string section is there but subtle. Ppl remember the beauty of a song that includes a string section without remembering the string section itself(just ask a non-musician friend out of nowhere, what he/she remembers about the song and they will tell you guitar and voice) so they think that the musician is somehow magical. Also, ppl don't know how harmony and melody work and why you can do things that seem impossible but are actually easy( witch the industry does) and why ppl that resort to those tricks can't play in the same city to many times in a row and why they need to fly around the world. And those flights cost money witch the industry pays for the artist. Anyway, artist in the industry are pricks that don't understand that the industry ppl are investing millions in them and the artist don't just get paid s*&t, it just comes in different forms.
Thank you for coming to my Ted Talk :))
@@thediminished98 Even tho labels invest into the artists that still doesnt mean the labels are not exploiting artists. Since the investment is miniscule compared to the profit labels make.
Also strings make an otherwise mediocre or bad song now worth millions yeaaah.
Prince was shouting this from the rooftops decades ago.
Damn right!
Michael jackson did too about Sony
Taylor Swift was saying this last year.
And so did Q-tip when he broke down all the expenses in that MTV episode ‘the life of’ years ago
UndergroundMan1223 thanks but I know that. I’m taking about a programme on MTV where he broke it down from $1,000,000 advance to $15,000 being the average musician’s salary 👍
A famous and well-respected artist once said that if the record labels weren't so greedy since the 60s, stealing artist's royalties, then maybe those artists would have gone to bat for the labels. Napster may have killed record labels, but their artists watched them burn.
Yup. Is why there was such a split and drama within the artists/industry... maltreatment/unfair contracts didn't start with Napster. Response by artists was split because of the way things were and so many actively backed downloading from a place of "fuck the label, I'm not getting paid so they shouldn't be getting pad for me.... hell, I recall some major bands started leaking things onto download platforms, selling music at the concerts "under the table" as though they were still high school bands trying to promote themselves at a State Fair, etc. Not to mention the news casts of record labels complaining how they were losing money because people were listening to a greater variety of artists and they didn't feel it was fair that people were broadening their tastes.
They didn't really die tho, they're involved in every streaming platform
@@tomlxyz More powerful and invasive than ever. True Dat
Napster didn't kill the labels; mergers killed the labels. Bill Clinton signed a paper that allowed for a lot of mergers and within about ten to twenty years America went from 150+ labels to, like, 6.
Except Shiteallica and Dr Dreck.
Since that, I've hated both. I mean, I don't generally listen to hip-hop so I don't know Dr Dre, but I used to love Metallica. But it became easier to hate them as everything after Justice was crap anyway.
This made me feel better about publishing my music to my 40 spotify monthly listeners !
You just got one more listener!
@@AlliBearASMRVA you should wait for the upcoming single then ! You'll love it
Some people wish they had just 1
Also if you have 40 nothing stops you from going up! Keep it going!
definitely ! become one now haha
mind my marketing skills lol
You might become famous one day, but please forget about the riches, if they follow so be it, but don't let those words touch your lips. And youll have a happy career.
It's like they say, without money, we'd all be rich.
let me put y’all on❤️
- take a smaller advance upfront
- DONT sign your masters and publishing to the same company (be sure to make sure that label and the other label aren’t under the same umbrella) keep them separate
- start a touring company and sign yourself to it (you’ll keep all of your touring money)
- keep the rights to your merchandise, you can do this by doing the same thing as the last bullet point.
- don’t fall for the red carpet treatment they do that to EVERYONE but be sure you let everyone interested take you out to eat because i’m not gonna lie they ball out for those dinners pre signing and take you to the most fire restaurants. but that doesn’t mean you have to sign to them.
- get an attorney who will tell you to take the lower offer for better terms. this way you know if you can trust them or not.
- once you sign keep “market share” in mind. they’ll have you collaborate with smaller artists under that label if you have traction under your own music. you can choose to collaborate or not but remember favors come in handy sometimes. so weigh your options.
- all songs you make matter. if you use them great, if you don’t, pitch it to other artists and get publishing points. make your publishing bag from your songs you release personally and songs you write that you think are trash cause you never know who will get as for it and use your “trash”
- and ultimately believe in yourself and never let one company / person have complete control or say over your work. splitting the deals up get you less money in the beginning but then you have more leverage later once they’re all working to try to blow you up. different connects with different companies and you still get the label power house.
- and oh yeah!!! main thing!!! PUT RENEGOTIATION CLUSES AFTER EVERY TERM;) this way if something blows up - you have room to negotiate more money per project.
- and eventually start your own label and sign artists and producers under you (respect them with equally favorable contracts so everyone eats and you get respected.
hope this helps you guys. independent is a wave but you can also finesse your way through the label stuff and everyone can win just be careful and make wise choices and don’t jump on the big bag promises early.
keep creating, love what you do & keep hustling for your dreams. (no matter what your gf or bf says lmao)
Really liked your music with Selena Gomez....u keep up the good work too
Touring company?? How?? And have any other artists have that?
@treezy yes he is, visit his channel.
Start your own touring company? Sure! - At what level!? Touring around your local city, town or region!? - Have you got any idea about the costs and expenses, and the administrative and management work involved in setting up tours, even at a relatively 'small regional level', let alone national and international tours!? - When you are dealing with....Accomodation, food, transport, vehicles, bookings, ticket, and various other sales? - Then let's throw in promotions, advertising concert venue arrangements and management. - The many contractors and skilled technical and support staff required!? Security arrangements and costs? Insurance costs etc? Sorry, but it doesn't seem like you do! (?) And certainly at the high end...For instance....With any of the current 'hot name acts' who might tour nationally and internationally....While they are still playing a venue in one city. - Up to a third of the operation has already moved on, to set up the gig at the next city - and so on. Sure, the punters might turn up for the party! And good on them! They are paying to be taken out of their ordinary zone - for a time! That's show biz! But it sure doesn't just all fall neatly into place out of the sky! PS. Being involved in this business, it was intriquing to hear about development funding. This of course isn't new. There certainly have been aspiring bands and singers, who were 'given' pretty generous development grants. - And 'suddenly' they had all this money. So got into the "rock star lifestyle" and never went anywhere near a studio for months. I can remember we were asked by one Record Co boss....If we could please go around and give one band a tactful little "tune up" over exactly, that issue. So yes, there can be issues on both sides.
Thanks, Trevor.
Very informative.
Go get 'em!
I guess that's what people mean when they say "selling your soul"
Yep! Not no superstitious bullcrap that other people say
Expired Tylernol but if you are my bitch because you owe me 500,000 dollars and I need my money, you will do what I say no its or buts. Thats gotta be the most satanic shit ever.
@@expiredtylernol no actually that stuff does exist, musicians used to be more open about their occult practices back in ‘60s and ‘70s. Today they’re a little more discreet, they don’t talk about who they worship openly, and they don’t confirm nor deny it when confronted about it, but it’s all in the symbols they use in their music.
Dennis Van Welker so you’re telling me all these artists do occult practices and worship shit? ok dude
Yup, they own your voice!
When I was littler and started varsity, I wanted to have my own record label. I then read a book on the business model of record labels. My dream died that day. Even though I was studying a degree in business, I looked at it and thought "This is not right. This is unethical."
I don't like this industry and it's not scrutinised enough.
You could have your own record label without doing something unethical .
@@lakaperse6995 but that’s the thing, it’s at times impossible to start without being unethical
You need to decide whether you want a profit or better ethics before beginning one
It’s a sad world
@@nirvaashah168 Yup
What book
I read that Olivia Rodrigo insisted on owning her own masters, after reading the problems Taylor Swift had.
What a 17 year old badass she was last year!
She was probably buzzing already in a bidding war. You can only ask for your masters if you have leverage to do so
@@Jumpaz416 apparently yes, I read she accepted a smaller sum of money to get the right contact for her. Wise move
Yep, I am glad the she knows how the music business works so young. And hopefully she teaches others about it.
I knew that artists got screwed by the industry, but I didn't know it was this bad.
Once they leave they are nothing very few Walked Out hell i doubt eminem has real words on trump hes nothing without his brand!
They should've just kept singing in the McDonald's kitchen. They probably could've made more money.
North American UA-camr yea but they wouldn’t have anything without there people Financing them. And no ones forcing them to make this deal. They’re welcome to do it on their own. If they can’t, then they have to make the deal that they can. If they really are such an asset the company will negotiate with them.
North American UA-camr yea but they wouldn’t have anything without there people Financing them. And no ones forcing them to make this deal. They’re welcome to do it on their own. If they can’t, then they have to make the deal that they can. If they really are such an asset the company will negotiate with them.
Jesse Collins exactly, I’m not saying that some artists that are truly talented at making content aren’t getting screwed if they’re no good at business but with tech becoming easier and easier to use it’s going to be easier to have artists self publish. In the old days if you didn’t have a label backing you, you had no chance to make your name known out there. And sure labels take gambles on other artists to find the unicorns but that’s just part and parcel of the business. And also brings artistic diversity to the masses even if it doesn’t succeed.
Makes you curious as to how many artists we have never heard because the record label didn't see them as profitable.
Everything gets screwed when business guys start stepping in for profit.
B Simm from Louisville, KY
It is not about the artist, it is about the people who are behind the artist. If they can use you for the agenda, you are the biggest star by the end of the week. You have to sell your soul so you won't be happy though, so don't bother to become a star.
@Alpha Omega release your album on bandcamp, streaming platforms. These days it's hard to find labels. And you don't really need them anyway. Everything you can do on your own.
So many.
Musicians need to actually be musicians. Do your own composition, songwriting, playing instruments and uploads/marketing.
Easier said than done
Bru this is the definition of "easier said than done"
But moooom! That's too hard!! 😭
@@WhyThoOz Easier said than done... until you have to pay the price for hiring others to write your shit, edit your shit, market your shit, etc etc. These fuckers keep onto their jobs with a cruel vengeance though. The actual musician should absolutely be able to dip.
That’s what I’m working on, all in one
Perspective is everything. A "record" company isn't really selling you recording expertise - anyone can mix in their own studio or garage these days. The 1930's [with its bulky and difficult to move equipment] are over and gone - long gone. What they are really selling is distribution. That means exclusive rights to them [along with their self imposed restrictions]. Never ever accept the premise of a "recording contract" - that's not whats really on the table.
So if you are shopping for distribution, then ask those questions - not when you can book studio time. And most importantly is do you know how most millionaires became billionaires? Controlling intellectual property.
This
Intellectual property, makes lots of sense
This video: Should be mandatory viewing for all aspiring recording artists. Show business is, in fact, a business.
More an industry than a business, I.e. Musicians are not employees or partners, they are raw materials or cattle to be processed.
I bet even then some people will sign it still out of desperation
and for the scientific and medical and eco industries..,industry is industry
@@SearchIndex In medicine you get paid a respectable wage for what you work, but only because if you don't you can literally kill people due to improper equipment and training. More industries should be treated with the high respect medicine is, just saying.
you made deal with devil.. and you hoping they are angel...
As a 17-year-old guy who has no idea about how the world works your videos are really helping me out. Keep it up
@Preston I don't think you know jack shit either. Also, at the rate the world is progressing, it's nearly impossible to keep a track on everything.
Don’t get discouraged
Let me just say as someone in his late 20s. I was starved for content like this during my teen years. You have access to more content than you have time to digest.
@Preston ok tough guy. show us what you can do in a real deal scenario. I bet your knees would turn to rubber in no time.
@Preston The smartest people I've met in my life who have extremely extensive knowledge about multiple subjects and are very critically thinking were very modest and agreed that although they do know quite a lot, the more they know, the more they realize they don't know. And people like you? Who put others down just to feel superior? There's a reason why they do that. When one can't lift himself up, he/she will put other people down. Let that sink in before you start screaming "what the fuck are you even talking about?" Although I don't expect you to understand.
I just watched THE NEW EDITION STORY. In the movie, after having a #1 song and completing a world wide tour, after they got back home to Boston, the 5 boys had a check to split among them.
It was for $1.97.
The manager of New Edition talks about recoupable expenses down to a tee. Also, that same manager did not get paid at all for himself.
Chile I remember that part smh. Wow
That’s why it’s important to stay DIY and sign to independent labels instead. There are quite a few indie labels with large followings out there.
Indie isn’t mainstream though , you won’t get very famous
@@marytc2714 You don't need to get famous and be a Billionaire
5000 Copies x $20 = $50 000 excluding Touring.
@@marytc2714 well if u work hard enough and have quality in your music and art, you can become mainstream, you can become probably the most famous artist in the world and no kidding here.......
the best examples are BTS & Taylor Swift
BTS were from an indie agency and rn they are quite literally the most famous artist right?
they turned a struggling, almost bankrupt company to one of the most profitable companies in the world!
As for Taylor, she also signed to an indie record label and made it so successful and she is also one of the most famous artists in the world rn but unfortunately for her, the ppl she signed to were awful jerks and A-holes
but at least, now she has control for her music
Im just saying if you work damn hard and dont give up, even if you are an indie artist, you CAN become successful
@@marytc2714 If you tour as an indie group, and play some well-known festivals, you can pull in quite a bit of cash
"The music business is a cruel and shallow money trench, a long plastic hallway where thieves and pimps run free, and good men die like dogs.
There's also a negative side."
Hunter S. Thompson
so eloquently worded
I heard it on xplay
Relevant. He was a writer, not a musician.
😅😂😤😂😅
@@kpec3 True, but Hunter Thompson did make that quote.
I've worked in the music industry since 1997. This is pretty accurate info.
what do you do?
@@Cory99918 pretty sure they mean the whole thing in general is pretty accurate
@@jvnxiie2441 yeah I'm thinking the same thing I'm sure when they mean pretty accurate it's like it's generally accurate and instances you know because there's people that don't do this not that this isn't true
What do you do?
@@kawaiiplastic5808 Legal affairs for music licensing and several years in A&R Administration. I've read and revised plenty of contracts.
Great stuff, I work in the graphic design and music industry and the treatment is even worse for artists, photographers, illustrators, and stylists, and dozens of production level people where plagiarism is rampant and time deadlines essentially guarantee the sloppiest dirtiest solution every time which are then used to screw an artist out of a raise either for being too derivative or taking to long to concept, it's incredibly disheartening to endure for any period of time and one of the reasons why most people don't last more than 5 years in a creative field. Most people quit or conform to management and take a job working excel, instead of adobe, for 3x the pay and 1/3 the work.
Duran Duran found this out way back in the 80s while they were still the biggest band in the world. They criticized the record labels in songs like 'I Dont Want Your Love' and 'Too Much Information' in the 90s. They only became rich when they started their own record label and started touring heavily.
"...and ghostwriters."
Shows picture of drake 😂
yeah yeah, love my cellphone....
Drake and his ghostwriter.
Wow! I knew it.
This is old news now. Even after everybody knowing it, Drake is still successful and chart topping.
Drake sexual spotted 👆😁
Imagine the time your parents spent raising you and then getting a 85% cut your lifetime income.
This is the records label argument.
@Usa mabaho You'd have an argument if there was some way to back out of the contract.
I own everything you say, create, post, and do for the the rest of your life. You cannot back out and you will be paid very little.
This is indentured servitude, this is repugnant.
Aaron Brown I agree
@Usa mabaho the time you took to write this could have been better spent on any other form of education.
every argument isn't personal , try to distant yourself so you aren't so triggered.
Fortunately, most parents don't have 95% of their children turn out to be total failures. Since we are comparing musicians to families, I did know a guy who was the only person in a large family to have a good income while everyone else was content to make minimum wage or straight up unemployed. Despite his six figure income, he was broke because he was guilted into financially propping up his parents and paying to raise his nieces and nephews.
Parents? Bad comparison.
This is why I prefer supporting Indie artists who self-publish themselves.
🤝🤝🤝🤝🤝
Its all in the manager you have. Genesis has always had control over every aspect of their career. Their manager, Tony Smith is extremely smart and extremely loyal to the band. He gets them as big of the piece of the pie as possible. All of the time
Same with Grateful Dead
Same with Oasis in the 90s
Ditto Led Zep.
And that's why Genesis managed not only to survive when Peter Gabriel "exited the machinery", which was pretty huge, but survive the lost of Steve Hackett as well, the main force which kept them prog. Tony Banks, Phil Collins and Mike Rutherford was the main force that kept Genesis very successful and pretty damn good on most of the albums. It wasn't greed, it was the love to make music by three amazing men.
Genesis was also the band that appeared to help Peter Gabriel who became broke when he organised the first, unsuccessful WOMAD festival in 82.
This also effects the quality of music, it all sounds the same because the labels are literally shitting out artist every week.
Back then music had a load of quality and you could remember that so song for decades. Now, you hear a song and you forget it so quick because a new song and artist is out!!
Lots of artists but only a handful of songwriters.
Art is subjective tho. It's not the art that's being produced that's the problem.
It is also because these artists are also crap somewhat like diarrhoea
@Magic don’t forget nicki minaj and megan the stallion
Now I know why famous bands who seem to have it perfect break up and go solo
What they are doing is ANTI-SEMITIC
@@cinemaparadiso5402 excuse me... What?
@@aryasenaputra3226 They are keeping all the profits, an artist deserves 5% .. 20% max .. also producers can tell the artists what subjects they are allowed to sing about and what they are not allowed to sing about. Also Zionists have the right to make money.
@@cinemaparadiso5402 im not gonna read all of that
@@cinemaparadiso5402 fuck zionists
A big surprise to me was when Duff McKagan allegedly said in an interview about the UYI Tour. "Guns N' Roses only broke even after more than 2 years of touring when we finished in July of 1993." Something had to have gone really wrong and many times over.
Yes, I read this too. Duff went back to school after that was over. He focused on finance because he had no idea what was going on.
These musicians dont have a clue when they sign. They are not lawyers. In the case of Guns N Roses, they were all strung out on drugs ☹ back then. They were their own hey-kids-dont-do-drugs-like-us experiment. Its shocking they all lived this long.
Drugs
Isnt Jonah Hill's father working on GNR UYI tour?
Could have also had something to do with Axl showing up late and starting riots, but yeah imagine the devil's writing those contracts
This is true information. That is why more and more artists are learning music production and marketing these days! Great video man, cheers!
“That just sounds like slavery with extra steps.”
No it's not. They had the chance to read the contract, but they didn't. It's their fault.
Ooh la la, somebody’s gonna get laid in college.
“Ooh la la”? That’s a pretty fucked up “eek barba derkle”.
WUBBALUBBADUBDUB
D3ATH_SHADOW AIDS!!!!!!!
This is why so many artist start their own label or just get marketing deals
bingo!
Chance the Rapper is a great example.
When you say marketing deals, are you talking about like commercials or can you specify?
@@marketbiz38 look up chance the rapper deal with apple. These types of deals are extremely seldom though. And it was more for the promotion of apple music back then, they don't need this anymore. You can still get endorsement deals if you have a radio hit and unique esthetics/image.
Facts!!
Trevor Daniel makes VERY valid points but the most important is to get a lawyer who specializes in the music industry contracts. This has been going on since way, way earlier than 1999 !!! Years before, Paul McCartney, Wham, and lots of other world famous artists have been stiffed by the Labels, but hey listen : You signed the deal. First big mistake. You do not have to agree to everything in the contract. Another word for Contract is 'An Agreement' and until you can both 'agree' then you don't sign. Simples. Don't let greed rule your life.
7:20 “Smashing Pumpkins on Joe Rogan” now that’s a band name
This is why the most popular singers are not always the best or even good.
Bingo
THIS
It’s not about how good you are it’s about how you sell yourself through branding and marketing
They kept being forced to release new music, that's why they sound bad because they dont have time to put thoughts or creativity into their records. Exception like Kendrick Lamar, where he realised the evil of the company on tpab, that's why his music felt genuine, and creatively good
@Balderas Antonio Maddona can sing, dance, and write, don’t even put her in the same category as that mediocre white boy.
I guess that's why they say famous artists "sell their souls to the devil."
Yep I imagine this is the origination
this is a wage slave planet.
There is a song by Andre 3000 on his kids show Class of 3000 called “all we want is your soul” He was warning the children about the industry as well. It was cancelled pretty quickly.
Jeremy Heartriter2.0 no it’s because they all sell their souls to the devil
that's not just a meaning. It's literally
ua-cam.com/video/ftdeb4ejQSg/v-deo.html
I have watched a half dozen of videos discussing this same topic but couldn't understand what was being said until listening to yours. You explained what the artist are dealing with clearly and succinctly. Thank you.
😱 Ive been hunting a video like this down because I have people that don't understand the business and I can only explain so much. Ty! You've saved me! Its getting worse since you've done this.
These recording labels are essentially banks, that are charging extremely high interest on borrowed time.
Nice.
And the same people. "The harder they comel" is a good movie
Facts. The most important part, making the music, can be done in someone’s garage, spare bedroom, closet, or living room. Thank God for Pro Tools. 🤣
when you study the inner workings of both they're almost identical. its frightening. the reason the labels spend so much money to make someone LOOK like a star is because they know fleeting fame and fortune are like alcohol and will lower the inhibition's of a normal person to sign back breaking deals. its insane how a person can change with fame. and its like a wink of an eye.
Kind of like the old fashioned "loan sharks", but legal....
Nothing in the world is as "glamorous" as it seems.
Thats a fact. Ayo, would you mind giving my song a listen? Im trying to build awareness, just looking for help where i can find it.
Completely agree.
Accurate
The "glamour" part is just cosmetics and packaging.
What about DJs
Yes that is true. But many musicians spend money in a reckless manner.
Yup especially in this flex culture.
Dude I’m so happy your channel exists.
Michael Jackson called Sony racist. He died and they bought his whole catalogue for 750mill 🤯
Some would call that price a steal.
How do you know this @mikayi ? I thought his estate owned it
From what I heard he was in debt.
There's levels to this thing.
Ben Caesar debt is fake
Isothrill exactly that’s the point
I was an artist back in the 90s. I actually got some attention by a few record executives but KRS One sat down with me and explained how the money flows. I actually turned down a contract and started an independent label a few years later. I lost a little money because I had no decent financial backing for my work but atleast i didn't get caught up in a record deal debt trap
Im picturing the dirty playing suit persuading you. Its like signing your soul to the devil. Its like, 🤔 college predatory loans, among other financial schemes that exist in the USA. Its all about their money they will make off exploiting you.
@@Starry_Night_Sky7455 Big Facts.
@@Starry_Night_Sky7455 Its like? Whatch some videos on the industry here pn the tube. They do sell their soul. Theres no doubt about that. And many of them have spoken about it. So its not like it is.
Anywhere we can still check your work out?
This is how I found your channel a year ago. Glad I did.
Great delivery Spencer, as usual.
So legalized debt slavery. Never knew about recoupable money.
Every car sent, every phone call is charged to the artist. The biggest scam? Labels bill the artist for studio time, despite owning the studios!
Try to figure out what high level bankers have in common with music executives and it all makes sense.
SpunkyMonkeyEUW dogwhistle much?
@@tartantulakid666 is it any surprise you subscribe to literal neonazi youtube accounts
@@tartantulakid666 he knows, shut it down
Bruh this is insane. That means that most of the “net worths” you can google for musicians are probably a lot lower.
Many of the ones with larger net worths have branched out to starting other businesses (Dre had beats, others are getting their hand in the label money by starting their own label...etc). But it explains why so few musicians have billionaire status in spite of ridiculous sales and investments...
never look up net worth calculations. There's truly NO WAY to know someone's net worth. But generally, those who do make money in the business do so in other ventures. Jay Z and 50 Cent are perfect examples. Leverage your following into getting other business ventures. And once you become an empire builder, you will have more leverage on the labels. 50 Cent is still locked into a terrible deal which is why he's stopped releasing music. But Jay Z got a 360 deal worth like 100 million because of his clout.
Never trust Google net worths.
Exactly!
@@SpencerCornelia I thought Jay-Z was independent. How could he sign a 360 deal!
Thx for explaining from both perspectives
I really like your content Spencer, always educational
And now with social media, these musicians are posting cars & big mansions, showing this fake lifestyle
Exactly paid slaves
That's youre 100K for "social media promotion"
Exactly! Living in big houses with rental furniture
Been going on since 'CRIBS'..most of that was faked as well,except Red Man,that episode was great!🤣
And they always got someone in red or a bunch of red cars to honor & symbolize their god. It's bananas how dark this shit goes. I'm not even religious, I just can't stop reading.
Actually, there's a third solution to the ones you proposed at the end: you build your audience all in DIY so you can then attract a label and have the leverage to negotiate a fair deal. Streams payout are not great if you have to split between 70 people when you are just starting out, this is not necessary. Realistically, labels these days will give a fair contract opportunity for an artist that has already made a part of the road to success. Owning your songs, having a great audience and the ability to create more great songs is what gives you leverage. Without leverage or proof, you are basically asking the record company to be an industry plant, meaning they'll have to invest a shit-ton of money to get you to the pro level. In these cases, to be fair, I think the record label has 99% of the rights. The "industry plant" artist is more like an employee since he does maybe 1% of the whole work involved in his own career. On the other side of the spectrum, you can have a hard working artist that built something overtime, and the record label is there just to ignite more of the fire by pouring money into great marketing. I think it all depends on the level of investment needed in the artist's development.
Building a music career is probably the most brutal business there is. But that's a ton of fun as well! Just don't sign stupid contracts mmkay? It's 2020, there are 1000 things you can do to help your career without losing your soul in the process.
Why would you sign a record deal if you are making it as an indie/diy? It's like giving them free money. If an indie is profitable on their own, why ruin a good thing? Labels don't bring anything to the table for a successful diy/indie artist. Why would I take an advance when I can just earn that money? This is just my point of view.
@@kpec3 I think that's my point: you don't want any advances except the money that's going to put into marketing. No fancy dinners, no overhead. But as I write this, you make me think that having a great team that you pay for their services could potentially produce great results. I'm just wondering in terms of "making it bigger", maybe a big label is the only way to get massive marketing power to get to the next level. Question mark.
Kévin Isabelle For me, no. Going bigger is not a solution and adding more people doesn't solve it.
@@RememberingGames you have a good point cause once you have a large audience there not much the label can do, other than getting you radio play and pushing money into marketing etc. There is a saying that says easy come easy go. The faster you rise to stardom with the labels help aka 360 deal, the faster you fall. I really found what you said helpful!
This is basically what Russ did. He was able to enter negotiations with leverage and his tunecore catalog before the deal was off limits.
Thank you for this!!!
Great video bru i especially like that u looked at it from both perspectives
If you want to be a musician for the love of music, become an indie artist and work your butt off, it eventually pays way more than 90% of those artists that are on "labels". If you just want attention and to be famous, sign a record label, have tons of photo shoots/videos and social media then end up broke(overhead and lawyers cost) and getting more attention for going broke then suing or being sued. I've been in the industry for quite a while and make a decent living at it by treating it like a business and establishing trustworthy contacts and keeping a tight network of reliable people. In the end this was a way better route for me personally that gave me 100% control of my own destiny and music (which is why I still love being a musician).
The only downside recently for us indie artists or at least me personally has been to expansion of streaming. While it offers you much more reach and bigger platform for being "discovered" the downside is more and more people are choosing to stream your music instead of actually downloading or buying an actual CD or vinyl.
If you really want to support your favorite indie artist buy their actual record or CD. i.e. I make $15 on a CD sell. I make 3 cents if you listen to it on spotify.
❤️❤️❤️
The issue is that music is not selling. Most of the claimed figures of sales are nonsense at best. Only a few big artists make anything.
Cultural creativity is at an all time low. Modern art is like a toilet seat.
@@bighands69 then what about those networth online
This is exactly why I play 15 instruments, read and write music, and have a job with my name on my shirt. I’m not gonna put steak on somebody else’s table while I eat baloney.
I play 22 instruments come at me
@Chris Osorio I play 70, I’ll wait..🤷♂️
I play 154 instruments....all at the same time.
I can only play 3:(
I can only play the drums. Not very good at it.
But I do have songs on UA-cam.
A couple of them are about death.
I'm a starving truck driver.
I love they way you break things down.. great information!
This is a fantastic video. Thanks Spencer. From everyone.
Thank God, I am an independent artist. I may not make millions but everything I generate is mine.-
Amen.
Were do you live? I also wana live tax free. Here in Sweden i get to keep 24% of what i own.
Independent artists are ANTI-SEMITIC (my opinion)
@@cinemaparadiso5402 did anyone ask for your opinion
@@yv4790 do you even know what anti Semitic means?😭😭
Social media had made it easier for artists to “pop” without a label. SoundCloud is another vehicle that has helped independent artists grow their name. The need for labels is diminishing by the day. That is why the labels signed equity deals with the streaming services. The Joe budden podcast talks about this topic a lot. Overall being independent is not as hard as it once was
would u trust small soundcloud labels for the underground like helix tears? they’re like a label some of their more notable members are 8485, blackwinterwells, osquinn, and dollywood, it’s not a label it’s a collective of artists managed and promoted by helix tears , but u do have to sign to helix tears
@@TheyNerfedYou so....it's a label. Lol.
@@acolyteaxiom4054 no not really just a collective of artists managed by helix corp
@@TheyNerfedYou so... a label.... LOL.
@@DiegoVelasco its a platform with more complications and lesser quality music so artists get paid lesser then what they would going to an actual label but they pro with soundcloud is that your able to flood your music so depending on how much music you put it out and how much views it revenues then your pretty under another "label"
Wow, I had no idea the music industry was this volatile.. Thanks for the video!!!
Thank you for the information.
They say blues musician Robert Johnson went to the crossroads where he sold his soul to the devil. It was actually where he signed a contract to record his songs. Nothing has changed. Thanks for posting this in greater detail!
Nice to see Robert Johnson’s name brought up here a true legend
YkOsiris made a video saying how the music industry is evil watch the video shits crazy
Used to illegally down music all the time when I was younger.. now I don’t mind paying knowing that It helps support my favorite artists.
I used Napster because I was pissed about all the times I wasted money on an artists CD with 2 good songs and the rest bs. 🤷♂️🤷♀️
Same here
Does it help support your favorite artist?
Your helping the artist more by illegally downloading the song and mailing them a quarter.
Just when you think your favorite artist makes 5 million to 15.5 million a year. That is 10 times more than the average doctor, lawyer, or airline pilot make in a year. However in reality it is just like working a normal job at McDonald's or Walmart. So don't use music sharing websites. These musicians are not made of money like you thought.
@@Queenofsole100 same here. Many’s an album I wished I never bought due to awful songs
6:00 "Many of your favorite artists dont write their own songs"
Yes, they do. Thats why they are my favorite artists.
Same.
Same here
Ion know bout that one, drake my favorite and we all know about drakes ghost writers
There's no way to really know unless you yourself see them write the whole song
@@jesseteno It would be more difficult for them to get some rando to write a song.
excellent educational video, spencer.
really enjoy your videos, especially the rebuttal videos.
cheers from southern ontario 🍁
😅 love how you mentioned ghostwriters and Drakes photo pops up. Hilarious.
Lmao nice catch
😤😂😤
🤣🤣🤣🤣🤣
But a rapper with a ghostwriter, what the fuck happened?
Lol, I was looking for this comment because I knew I wasn’t the only one who noticed
This is the best, most comprehensive but approachable breakdown of how the music industry works and takes advantage of people. These days, especially in electronic music, we're seeing the rise of indie labels that sign artists on a song by song or album by album basis, and it seems to be a much more equitable deal a lot of the time.
Also, I can confirm firsthand that Spotify, while great for discovery, does NOT pay well.
There are deals on a song by song basis?? Wow that's interesting. I haven't come across that yet, although I didn't spend any time analyzing electronic music industry much
@@SpencerCornelia Electronic music is the best. As an EDM Producer, I can tell you that labels are really better than the majors! Mostly the labels owned by big DJs are really cool. I got signed to a label where I could make 75%
Yes, I can confirm. I'm an electronic music producer & DJ and for last 10 years I signed only singles or EPs to different labels. I chose not to be exclusive to any label :)
HEAVYVIBRATION STUDIO PL INDEPENDENT METAL PROJECT, JOIN AND ENJOY heavyvibrationstudiopl.bandcamp.com/
You're right about spotify not paying well, but quiet wrong about it being great for artist discovery. People think it is the greatest platform for artists discovery because they have no better option. Spotify is the worst at promoting new artists. There is an absolute way new unknown artists can easily be discovered outside of streaming platforms and I am starting a company to do just that
really love how u site your sources in video man
The best video I've probably ever watched on UA-cam. I want more
When Napster came out the record company said “the artist is being ripped off” more like the record company was being ripped off. 😂
Yup I don’t remember exactly the right number but someone said 3000 or 4000 plays is equivalent to one cd sale some bullshit like that I was shock when I saw that lol
@@juliobello4561 It depends on where the CD was sold. Album sales are weighted. An independent store will generate more "sales" for a single CD sold than a box store like Target would, for example.
And why there was such the massive split then between major artists where so very many were backing and actively urging downloading vs buying.... or releasing their own on the DL at concerts and such. Some fought downloading hard, some fought for it hard. Depended on how much they were getting screwed, how, and for how long they had to wait it out.
As i remember their biggest opposition was Metallica the freaking band not the record company.
Ripping the record company (or talking against the record companies) is ANTI-SEMITIC (my opinion)
Yeah, this BS has been happening in one way or another since the 1930s, when people REALLY started buying records. I'm reminded of the story of Sean Combs meeting David Bowie. Sean was shocked that Bowie had such a firm handshake and asked him, _"Man, I want to know what exercise machine you use?"_ Bowie replied, _"It's called holding on to your money."_ Bowie had been screwed out of millions for a decade by his managers and RCA Records from 1971-1982. Starting with 1983's "Let's Dance" album, he never let that happen to him again.
Much respect to this channel. I’m glad I subscribed here
I put my years in touring with artists as a stage manager/guitar/backline tech. Generally speaking, unless the artist is selling out arenas, the crew are making more than the band. Macklemore spoke the truth in "Jimmy Lovine"
Anyway, you ready? We’ll give you a hundred thousand dollars
After your album comes out, we’ll need back that money that you borrowed"
"So it’s really like a loan?"
"A loan?! Come on, no
We're a team, 360 degrees, we will reach your goals!
You'll get a third of the merch that you sell out on the road
Along with a third of the money you make when you’re out doing your shows
Manager gets twenty, booking agent gets ten
So shit, after taxes, you and Ryan have 7% to split!
That’s not bad, I’ve seen a lot worse
No one will give you a better offer than us"
"Mm-hm," I replied, "I appreciate the offer"
Thought that this is what I wanted
Rather be a starving artist
Than succeed at getting fucked
“Industry Rule #4080, record company people are shadyyy” - Q-Tip
A Tribe Called Quest - Check The Rhyme 👍
Indigo Yep! Wisdom from a Long Ago. Still Applicable.
Thats why you stay independent And keep all the money yourself
What money? :))
James Brown was known for traveling on tours with suitcases full of cash and a pistol in his pocket.
Then you have to spend more time running the business and less time actually making music. The choice is yours.
EDIT: I don't mean that as a bad thing. Sometimes you do need to run a business in order to make a living.
@@danielsjohnson well if you want to be a musician, you should also learn business. as music IS a business, rather people want to admit it or not.
Yep
Thank you brother very well spoken
I’d say look into the way Hybe and Big Hit has handled BTS’ career. From training them and preparing them to for the industry, to keeping most things in-house and allowing the members of the group get their own studios within the record label’s building.
That's because they cleared off all the debt with the huge sum of money they made after they took off. Most of the reputable companies work that way, they'll spend whatever is required from forming the group to promotions and once you start making money and slowly clear off the debt, they'll start paying you / increase your salary
“...Or take drugs for a boost of creativity” 😆😆😆
😭😂😂🤣
It's always been this bad, you haven't seen kpop companies yet.
That's next level
@@tanio7639 some are, but a lot of the “slave” contracts are a thing of the time. Most kpop contracts are pretty much the same as western artist contracts, hence why more and more kpop artists are writing and producing more music.
@@maddie9655 I’m sure the contracts are similar in terms of payment but man... I’ve seen one too many “Kpop artists passing out on stage” compilations to say that it’s the same
Correct me if im wrong, imo the difference between western and kpop artist is their freedom. Kpop artist, especially band get a lot of pressure by their masters. Even in some case, this pressure cause suicide. They can't ask for help to anyone, even their fans cause some of kpop fans is.......uknowwhatimsayin
@@wm_9640 western artists also pass out, I’m not sure about all fainting and sicknesses on stage, but I know most of them are due to outsider conditions like heat and clothing. I’m not saying they are not overwork, but the biggest difference is that kpop artists get more pushback when in reality almost every single issue is in the western music industry as well. I mean western record labels and managing companies are insanely cruel and sometimes even more cruel to their artists.
You’re an excellent bro... Way to break down so many topics @ digestible to common folk level
I've watched 3 consecutive videos so far today on this channel, all very informative and entertaining
"Sign a deal with the devil". Well put. Most of these musicians could earn more money driving a truck. Just saying.
Was in bands for over 20 yrs. Luckily I got to hang out with some pretty big tour managers and learned a lot from them. We talked to several labels over the years but had little luck cause we just wanted a promotion deal. They wanted to give us more and more money so we'd turn them down. Never ended up landed a good deal but still got to play with all my favorite bands over the years just doing diy. No debt and good memories.
You never would have made money unless you were in the pre 1990s. Music sales over the last few decades have massively dropped off.
Most consumers are not interested in trashy products that obsess over destruction. Culturally we are at an all time low in terms of creativity.
Movies, films, TV shows, books and art is creating dreadful products in the modern world. Could you name one great pop song in the last two decades or a style of clothing that you could recognise as part of the culture?
Very informative info thanks brah.
This makes me feel better about my small Instagram and Spotify fan base 💜
You cool with working a 9-5 for the rest of your life?
Industry rule number 4080:
Record company people are shadyyyyyyyyyy
In my notes, I had this song listed to add and I completely forgot to add it
HEAVYVIBRATION STUDIO PL INDEPENDENT METAL PROJECT, JOIN AND ENJOY heavyvibrationstudiopl.bandcamp.com/
oohh a tribe called quest..respect!
its Music Mafia even the court judges are in universal swapping codes to put royalties to other accounts
Kids watch your back.
First thing if you want to go into music: do you want to just do the music? Or do you want to manage it all, yourself? Second thing: hire a lawyer, regardless. Third thing: don't sign anything until you know what it is you're signing. This whole thing is not a new problem or topic of conversation.
yep. Artists have nobody to blame but themselves if they are in a shitty deal.
@@doublestrokeroll when all deal are bad, where is competition or incentive to make a better deal... just saying.
@@ct2651 They aren't all bad though. Plenty of smart artists made sure to have their deals scrutinized to make sure they weren't getting screwed. Take Rage Against the Machine. They basically demanded and got total creative control from a major label. Prince is another one. He did whatever he wanted and made a ton of money while maintaining control.
Nobody put a gun to anyone's head and made them sign. The artists ALWAYS choose to sign. If they don't read what they sign then they are fucking idiots. Plain and simple.
@@doublestrokeroll you would be able to cite way more than two example if what you said didnt need some kind of genius intellect... when most people are indeed idiots, maybe the system shoud accomodate a little more.
@@ct2651Besides your first sentence not even making sense, every rich musician who owns their own masters. Jay Z. Rhianna, U2, Metallica, the list is large. Do I really need to name them all? Or are you that lazy you can't do your own google search? And there are still plenty of bands who may not own their masters but negotiated great deals for themselves.
Or maybe they should just know it's a business because it's obviously a business, and stop being naive little children.
How far is the "system" supposed to go to provide you with an education about the thing YOU chose to do? Absolutely ridiculous to even suggest that people should be hand held and not take responsibility for their own decisions.
Thanks for the information.
Tom Petty damn near bankrupted himself fighting for the rights to his music.
That’s why they destroyed MJ...he was an equal partner with Sony (through catalog ownership) so they destroyed his reputation before taking him out
Yea the industry is full of interesting stories, especially once artists start gaining control
They got all mj recording masters
ordonize holmes ??
@@SpencerCornelia very interesting indeed..!
Error_ YUK to be fair, if he didn’t have kids sleeping in his bedroom he would never have been accused in the first place
I was an aspiring artist In the late 90s and early 2000s. Once I took the time to learn the business and found out the very facts that he is speaking about. I quickly bowed out left the rapper ambitions on the corner and went back to school.
This is exactly why I was so shocked and impressed by the group ICP after listening to an interview about their experiences with labels. You'd think that a gimmick band like Insane Clowns would be broke as a joke right now... but they actually found a way to maneuver around the record companies and mainstream outlets to keep the money they were making.
This video serves as a testament to why you should always build something profitable FIRST, and then follow your dreams 💙
I am SO thankful that I decided to pursue ecommerce instead of the music industry. I'd rather have a profitable business AND have the freedom to compose music without all of the stress and slave-like contracts 👍
I’m 30 years in the business as an artist advocate and consulates and a lot of the money is outright stolen from artists, and the major entertainment lawyers and accountants sell out the artists and represent the record Labels (which is a major conflict of interest) Jess S. Morgan & Company baaed in L.A. is embezzling from major artists right now.
Like MJ and his lawyer John Branca
I'm surprised that people still sign major record deals...
I know right?!
Desperation. Not many artists have the balls to actually go independant. If you could get signed now for an upfront payment of $300k chances the average artist would take it, not knowing going independant, they could make that in a month at some point and only have to worry about the tax man.
Fax
Marketing is a bigger factor to being a star than talent. Alot of artist know that. If you want to big a star it is all about marketing and promotion.
I love to do karaoke and sometimes a person sings a song so good that its clear they have a God given talent yet they aren't stars. Why is that? It is because being a star is for the most part a result of good marketing.
I assume they do it for the advance and the hope they can turn them into stars
This was really entertaining and educational. Great job 😊
Well done bro. this is clean and briliant
I'm so pissed off by the industry
Ok, so stop consuming their product.
Then start to listen to independent artist
Ive seen many hip hop "news" channels try to break this down, but none come close to how clean this is.
(probably because this has graphics instead of endless GIFs)
Thank you
holy crap great content man
What a great video. Thank you.