Fat Joe Says Major Record Labels Are Compared To A Ponzi Scheme

[Tommy Gibbs]

entertainment industry accounting is weird. saw some shyt where the writer for men in black has never been paid cus according to the studio its still in the red. movie made $600 million dollars

De la soul has sold MILLIONS of albums and singles for Tommy Boy and Tom Silverman wants everyone to believe that he hadn’t made a dime off of them in over 30 years. I’m top of that, their budget was low as hell compared to most signings. And clearing samples was cheap back in the day. Dante Ross broke it down how cheap that mf was. Ross said he was signing all of these acts making the company millions and Silverman was only paying him $300 a week lo. Goddamn.

 

[Dreamchaser]

The record labels are like banks, when you go to a bank to buy a house you typically put in a down payment. Since, artists don't have any physically property they have to give up future rights to albums in order to get a label deal/money. So they get screwed at the start of the deal because they lack leverage.

I dont think Fat Joe understand what a ponzu scheme.

 

[maxamusa]

As I've gotten older, it's hard to understand why anyone wants to sign a record deal. As an artist, you sit at home or in the studio, create music that you will never really own or make any serious money from. I can understand if you're an artist that has songs written for you and you're nothing more than a performing artist, but for the rapper-singer/songwriter, that shyt just doesn't make sense to me. Especially those that write AND produce for themselves.

cause you're literally buying the machine. DJs, promoters, advertisements; etc....the whole package......

 

[Renegade47]

Still the GOAT Hollywood screwed me story:

'Gump' a Smash but Still in the Red, Paramount Says : Movies: Writer, who is due to get 3% of net profits, hires lawyer to question the studio's accounting practices.

"Forrest Gump," the Academy Award-winning movie starring Tom Hanks as a simple man who believed the best in people, has sold a staggering $661 million worth of tickets worldwide--the fourth-highest-grossing global release of all time.

www.latimes.com

Dude wrote forest gump. It cost around 60 million to make. It made over 500 million. Dude was supposed to get 3% of net profit. They told dude the movie was IN THE RED. They told dude a movie that made 10 times its production budget LOST MONEY. This dude died and never ever got his 3% of net profit from the Forrest Gump movie.

hollywood some gangstas

 

[CrimsonTider]

As I've gotten older, it's hard to understand why anyone wants to sign a record deal. As an artist, you sit at home or in the studio, create music that you will never really own or make any serious money from. I can understand if you're an artist that has songs written for you and you're nothing more than a performing artist, but for the rapper-singer/songwriter, that shyt just doesn't make sense to me. Especially those that write AND produce for themselves.

A record label gives you money to make music, a Platform to deliver that music to audience and promotion to make you a star

Wtf are you talking about

cause you're literally buying the machine. DJs, promoters, advertisements; etc....the whole package......

He sounds crazy. There’s literally no downside to having a record deal. The label has all the financial risk

The alternative is you spending your money for everything.

Killer Mike is independent and said the album he released this year cost 800k to make and that came from his bank account

 

[tremonthustler1]

As I've gotten older, it's hard to understand why anyone wants to sign a record deal. As an artist, you sit at home or in the studio, create music that you will never really own or make any serious money from. I can understand if you're an artist that has songs written for you and you're nothing more than a performing artist, but for the rapper-singer/songwriter, that shyt just doesn't make sense to me. Especially those that write AND produce for themselves.

because blowing up is still the goal. There aren't as many Toni Braxton/TLC stories anymore about artists at the top. Morgan Wallen ain't selling all these albums and coming back to $1.87 in his account. Artists will tell you now that you can't support yourself off selling a record. It's everything else that comes with it, stuff that is made easier by being on a major.

Like Phonte said "make a living or have a life, guess that I gotta choose"

 

[Whips-n-Chains]

By definition, not a Ponzi scheme, as any "investment"Joe makes is not being redistributed as false gains to pay out previous investors/artists, rather it's being used for himself. However, I get the point he's trying to make, and he's not far off.

 

[Tommy Gibbs]

A record label gives you money to make music, a Platform to deliver that music to audience and promotion to make you a star

Wtf are you talking about



He sounds crazy. There’s literally no downside to having a record deal. The label has all the financial risk

The alternative is you spending your money for everything.

Killer Mike is independent and said the album he released this year cost 800k to make and that came from his bank account

Everyone gets paid FIRST out of that "budget" before the artist keeps what's left before album release. Nowadays, it's really not that much different event with no record stores.

 

[CrimsonTider]

Everyone gets paid FIRST out of that "budget" before the artist keeps what's left before album release. Nowadays, it's really not that much different event with no record stores.

 

[CrimsonTider]

because blowing up is still the goal. There aren't as many Toni Braxton/TLC stories anymore about artists at the top. Morgan Wallen ain't selling all these albums and coming back to $1.87 in his account. Artists will tell you now that you can't support yourself off selling a record. It's everything else that comes with it, stuff that is made easier by being on a major.

Like Phonte said "make a living or have a life, guess that I gotta choose"

Those slave contract days are pretty much over outside of desperate artist signing with some local management

The issue is what fans hear about record deals complaints are a from survivorship bias perspective. We here from the artist that got a million dollar advance and the label generated 50 million from what that artist produced.

We don’t hear from the artist that got a million dollar advance and never turned in an album

 

[JealousOnesEn_V]

A record label gives you money to make music, a Platform to deliver that music to audience and promotion to make you a star

Wtf are you talking about



He sounds crazy. There’s literally no downside to having a record deal. The label has all the financial risk

The alternative is you spending your money for everything.

Killer Mike is independent and said the album he released this year cost 800k to make and that came from his bank account

***$500K