Independent labels pay more
Posted by: ejl on 12 March 2003
An interesting story this morning on National Public Radio (American public radio network). According to the report, independent pop music labels pay musicians as much as four times more per album sold compared to major labels. Apparently most major labels pay performers around $1 per album, unless about 1 m. are sold, at which point it gets closer to $2 per unit. Independents by contrast pay as much as $4 per sale from the beginning.
Aimee Mann was reported as seeing her income quadruple when she moved from Geffen to her own little label. Meanwhile an unnamed band signed to a major label was reportedly netting a paltry $15,000 annually per member from a new album that had already sold 1.5 m. copies (!!).
If these numbers are even in the ballpark, it gives further evidence for the redundancy of major pop record labels. For all of their whining about copy protection, the fact is that they are so top-heavy with corporate expenses that they can't even pay a living wage to artists who do well for them.
Hooray for independents
Aimee Mann was reported as seeing her income quadruple when she moved from Geffen to her own little label. Meanwhile an unnamed band signed to a major label was reportedly netting a paltry $15,000 annually per member from a new album that had already sold 1.5 m. copies (!!).
If these numbers are even in the ballpark, it gives further evidence for the redundancy of major pop record labels. For all of their whining about copy protection, the fact is that they are so top-heavy with corporate expenses that they can't even pay a living wage to artists who do well for them.
Hooray for independents