How musicians get f$%^ed by the current model
In order to give you a better understanding of the economics of the current business model in the music biz, I am going to quote Matt Mason, from his book The Pirate’s Dilemma. Hope this makes you want to get more involved.
“One day I really sat down and did the numbers. You get a dollar per record, and after the recording and promotion of the record, it might be $800,000 spent, which comes out of your cut. You sell 500,000 records, which means you wind up owing the record company $300,000. You’ve blown the record up, toured all around the world, how in the hell do you owe them $300,000? If they sold half a million records and got $9 per unit, they made nearly $5 million! And you still owe them!!!
We have to change the structure. You know what made me realize? I did a mixtape about four or five years ago. I went to a couple of the stores and they were like ‘we sell mixtapes for $10, and we’ll give you $5.’ And I was like ‘Shit! That’s 50 percent! That’s more than the record company gave me! And when you get to the big time, you get 10 percent? If your tape blows up, you might sell 10,000 tapes. And you made $50,000. You can’t make that when you sell 1 million records. That’s why the industry is dead. I know a lot of artists that made records without record companies, but I don’t know any record companies that made records without artists.”