How the music industry really works?

[Big Woadie]

I've heard this term over and over again "we didn't know the business" "they didn't know how the industry works" yada yada.

So how does it work? How do you get screwed over?

Example; let's make up a rapper.

Young Jetski

Young Jetski's from Tampa, nobody outside Tampa ever heard about him, but inside his lil circle he knows few people, can book few local gigs, has couple of local hits. Fill in the blanks from there. How does he get discovered (YouTube nowadays I guess) and why would Warner or whoever invest money into him?

As far as I'm able to comprehend - that's pure bet for them, playing with chump change, just like internet startups...they throw couple of millions at 10 companies...they won't even blink at those numbers...9 could fail, they don't care, but if one out of 10 makes it, it recoups for all of them x10.

Or am I completely missing the point?

 

[Nomadum]

I've heard this term over and over again "we didn't know the business" "they didn't know how the industry works" yada yada.

So how does it work? How do you get screwed over?

Example; let's make up a rapper.

Young Jetski

Young Jetski's from Tampa, nobody outside Tampa ever heard about him, but inside his lil circle he knows few people, can book few local gigs, has couple of local hits. Fill in the blanks from there. How does he get discovered (YouTube nowadays I guess) and why would Warner or whoever invest money into him?

As far as I'm able to comprehend - that's pure bet for them, playing with chump change, just like internet startups...they throw couple of millions at 10 companies...they won't even blink at those numbers...9 could fail, they don't care, but if one out of 10 makes it, it recoups for all of them x10.

Or am I completely missing the point?

How does "Jetski" get discovered? well yo..."Jetski" should first do his paperwork. this includes;

• ASCAP registration
• Royalty registration
• Copyright registration
• Possible Logo created

next "Jetski" will need to build up enough of a fan base that it appears like a lucrative deal for record companies to invest in him. although they toss millions at 10 companies, they're projections show they stand to profit greatly as opposed to the risks. a new undiscovered artist can tend to be a complete lose of money if he/she doesn't prove to be marketable or valuable in the long wrong.

but the business model is changing, and rapidly. companies that use to be gate-keepers are loosing footing and now the market is perfect and situated for indie-acts. example, Lil B was said to be making 30k a show. with buzz and fan base like that, signing to a label would be suicide.

 

[Big Woadie]

So let's act like Puff Diddy here. Let's try to "legally but certainly not ethically" "obstruct" the potential cash flow for Jet Ski.

How do we do it?

 

[Nomadum]

So let's act like Puff Diddy here. Let's try to "legally but certainly not ethically" "obstruct" the potential cash flow for Jet Ski.

How do we do it?

easy, put it into a contract. which brings up another point I should have mentioned in my initial posting. get a fukking lawyer and don't sign shyt until you fully understand what the contract binds you to. it's been alot of rumors that in the 90's all the music video budgets, the tours, the cars and jewels were all recoverable money to the label meaning that although a rapper signed a 5 album deal, and got a couple hundred grand or mill signing, that money was nothing more than an advance.

it's too easy to fukk a rapper over, which is why so many continue to get the shafting with no reach around.

 

[Big Woadie]

Give me an example. Please believe it's not that I'm trying to learn how not to get fukked over, I have no ambition in rap, lol.

I just want to know how did all the rappers got fukked over...so many stories....and I don't understand, how can all those rappers repeat same mistakes year in year out

 

[L&HH]

Give me an example. Please believe it's not that I'm trying to learn how not to get fukked over, I have no ambition in rap, lol.

I just want to know how did all the rappers got fukked over...so many stories....and I don't understand, how can all those rappers repeat same mistakes year in year out

There have been many a thread on this topic. Wendy Day has written alot of good things on this topic and she's the one who got Cash Money their unprecedented deal. In order to not get fukked over you need to come with leverage and have a good lawyer/negotiator on your side. http://www.wendyday.com/

The way artists were getting fukked in the past is the entire album budget was recouped on the artists dime. Say you sign a 1 album deal. They gave you a five figure advance, paid for the studio time, producers, music videos etc. Remember when people used to say they were only getting like 25 cents a record? Well now let's say you sold 1 million records, that leaves you 250k right? Except, the entire budget has to be recouped from your % of the record sales not the labels. This is how the labels could make money but you'd still be in the red. Now imagine doing that for 4-5 albums straight.

On top of that were also hidden fees. One example is back in the vinyl days a certain % of vinyls wouldn't even make it onto the shelves because they'd get damaged, well the label charged the artist for those damage fees. Once CDs came out there wasn't an issue with the record breaking during transport but labels were still taking money from the artist as this fee.

Now it's different. They just have the whole 360 shyt going on.

 

[Stay Seeking]

Diddy knows the business

 

[Big Woadie]

Remember when people used to say they were only getting like 25 cents a record?

What the hell...so artists get 5 figure...99 999 $ advance. Buy new car, wheels and jewels. Flossin. Now the records start sellin. 25 cents? Where's the other $9.75 or whatever?



Khat damn these labels are another level of ruthless.

 

[str8up]

You should see some of this shyt they try to get away with in contracts

Most of these dudes probably just sign it when they see a dollar amount

 

[mortuus est]

i gotta make it ma, ma i wanna be a rapper