7/31/2019 Empowering the Recording Artist - The Numbers

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1. When do I get paid? 2. What do I owe the label (Recoupables) 3. How many albums did I sell?

Artist signs contract 2/4/2001 Artist Advance $60,000.00 Total albums sold 1,000,000 units

Attorney Fees $15,000.00 Promotional albums -3,000

Album completed 2/4/2002 Recording $240,000.00 Returns (5%) -42,000

Radio Promotions $200,000.00 Net albums sold 955,000 units

Album released 5/4/2002 Advertising $90,000.00 Artist royalty base x $1.33

Tour Support $50,000.00 Gross sales $1,270,150.00

Artist is fully recouped and 4/1/2005 Independent Promotions (50%) $85,000.00gets first royalty check from reserves Independent Publicity $40,000.00

Independent Marketing $50,000.00

Merchandising $20,000.00

Video (50%) $300,000.00

Total Recoupables $1,150,000.00 give the new and aspiring recording artist

4. How much did I make per record? 5. How much did the label make per record? 6. How much did I get paid?

CD Suggested Retail List Price $18.98 CD Suggested Retail List Price $18.98 Gross sales $1,270,150.00

Packaging costs (25%) -$4.75 Retailer -$6.38 Total Reserves (30%) -$381,045.00

Royalty base $14.23 Distributor -$4.10 $889,105.00

85% of Royalty base (SRLP) $12.10 CD Wholesale price $8.50 Recoupables -$1,150,000.00

Artist royalty rate (15% all-in) x 11% Net artist royalty base -$1.33 Balance -$260,895.00

Artist royalty base $1.33 Producer royalty (average) -$0.49 Royalty Statement 10/1/03 -$165,633.75

Songwriter royalties (average) -$0.92 Royalty Statement 4/1/04 -$70,372.50

Pressing & Printing -$1.60 Royalty Statement 10/1//04 $24,888.75

2012 MKWR AFM (SPF/MPT) -$0.045 Royalty Statement 4/1/05 $120,150.00

The artist waits approximately 4 years from the date the contract is signed to get paid from U.S. record royalties? (liquidated reserves)

After paying the business manager (5%), manager (20%) and taxes (33%) out of the $145,038, the artist takes home $60,915.96?

The record company gross $3,934,600 before expenses and profits $1,250,000 after expenses when a million records is sold at $4.12 per record?

3 years

You might be surprised by what you find below!

Artist sells a net 955,000 units

is an example of record royalty calculations

EMPOWERING THE RECORING ARTIST

an eye-opening view of the music industry.

and related estimations with the intent to

EMPOWERING THE RECORDING ARTIST

1 year

3 months

Did you know?

The recording artist who sells one million records has an average of $1,150,000 in expenses making a net total of $145,038 at $1.33 per record?

Artist waits approximately 4 years from

date contract is signed to receive

records royalty payments

Artist makes $1.33 per record sold

You will have to pay back $1,150,000 to the label