Most people have probably been wondering all this time how the payments go about in the music industry. You about to have your questions answered, the money fans use to buy singles and albums doesn’t all go to artists so don’t be blind sided by the glamorous life they always portray so we get to envy them.
Those who are well aware of the work put by songwriters and producers would agree that they should be the most paid, unfortunately they are not. The reason why most producers opt to start their own companies is because they feel they put in so much work for a much lesser pay.
The example of how these payments go about is broken down into 7 sectors. In a price of R99.99 you use to pay for an album those 7 different sectors have to get a share of their own. The Record Label net profit is R18.05, A press cost of CD record label R11.53, Distribution cost R6.98, Writer of one song in an album R0.11, Album artist receive R8.33, Tax deduction are R12.16, the stores receive the album with R41.84.
This is counted as part of the reason why some recording labels become unsuccessful and shut down. Another reason why most artists die or end up poor with nothing but their name left. DJ cleo shared this eye opening information, check his Instagram post below.
FYI, this has been the business model for years and still is..(producers and songwriters are the least paid) that's why in the last 15 yrs some of us decided to be everything in one….and it's paid off. #ThinkBeforeYouPirate #PiracyKills #DontCopyMusic #SupportArtists – That's why labels shut down – that's why RELIABLE MUSIC shut down – that's why Look n Listen is closing doors – That's there's barely any new artists anymore – That's why Muso's die broke