Record Companies

Question 1

What are the six primary roles of a record label?

Answer 1

Cover the cost of recording
Pay the artist an advance and royalties from the sale of their music
Pay for album artwork
Pay for manufacture and distribution the digital and physical mediums (CD, Vinyl etc)
Pay for the recording and distribution of a video to support the record
Financially support the artist in promoting the record

Question 2

When does an advance have to be paid back ?

Answer 2

From the Gross earning from the sales of the recording (digital, physical, streaming and Sync)

Question 3

What is the length of copyright (for recordings) ?

Answer 3

70 years

Question 4

How are videos for singles usually pay for ?

Answer 4

Either fully by the record company or often half by the record label and half from the artists royalties (similarly to the advance)

Question 5

What is a 360 recording deal, in essence ?

Answer 5

An increasing trend that record companies want to earn from (and have influence on) as many of the artist’s income streams as possible

Question 6

What are examples of three additional areas of an artist’s income that a 360 recording deal would earn from besides the recording copyright?

Answer 6

The artist’s publishing, touring and merchandising earnings

Question 7

What are the three major record labels (2021) in order of market share from largest to smallest ?

Answer 7

Universal Music Group, Sony Music, Warner Music Group