Labels move forward at the expense of artists

Filed in archive Analysis , Artists , Major Labels on April 11, 2006

Michael Milom writes on how artists contracts are changing as labels move into the digital world. The news is not good for artists. To maintain or grow their profitability the record companies are demanding more income streams for the artist and at a higher percentage rate.

Labels now typically require:
> Ownership of artist web sites and its income
> Artwork licensing and revenues
> A share of touring and merchandise revenue
> Decreased revenue share of digital sales to artists
> Mobile product (ringtones, etc.) production with little or no payment to artists
> Higher percentage of business expenses that will be repaid by artist