Even though most people here know the majority of the record
, I'll review just to make sure that we're all on the same page:
Step 1: Artist
X Produces a Demo
Executive Y at Record Company
Z listens to the demo.
Step 3: Artist
X is signed with Record Company
Step 4: Record Company
Z gives Artist
X a sum of money and studio
to produce and record music
. Record Companies often have their own engineers
to record and edit music, also.
Record Company Z has the record
Step 6: Record Company
Z either distribute
s the music
to stores) or pays someone else to do so.
Record Company Z takes all income
from the sale of merchandise and pays its employees, the distribution company, the recording studio
, the pressing mill and everyone else, except the artist.
Step 8: Record Company
Z counts the number of unit
s sold and pays the artist a fixed rate per album
. This number is usually in the pennies
If successful, Record Company Z pressure
s Artist X to create another album
. The cycle starts again from Step 2.
to only one other business model
I know at this time;
The Pimp - Ho Relationship:
The Record Company is the Pimp
The Artist is the Ho
The Stage/Studio is the Corner
The Audience is the Trick