Ok, here is my final input on this, taken from;
http://blog.outer-court.com/forum/25240.html

The record company foots the bill for production of the CD. That
includes recording, producing, and artwork (for the CD). 
They expect the artist to help pay these expenses, so they arrange for
an "advance", basically lending the artist the money needed for
production. 

The artist only makes money AFTER the record company has recooped that
advance, and even then, it's only a very small percentage of the cost
of the CD that the artist ever sees. Now, the artist has agreed to
this, because the other source of income the artist sees does NOT come
from the record company. 

It's the "Royalties". Royalties are earned every time an artist's song
is played on the radio or TV, as long as the artist wrote the song. 
If someone else wrote the song and the band took that song and recorded
it, the band makes no royalties. The writer of the song does. 

If I write a song, and someone else records it and it gets massive
airplay, I get rich, and the band only get's album sales, which is
small. 

That's because the writer of the song ownes the "publishing" writes to
the material, and get's payed when it's used. 

When you sign a deal with a record company, they then own half (it used
to be half, maybe more now) of the publishing. 

SO not only is the record company taking most of the song sales, but
also over half of the royalties for the song/album. 
The royalties are payed by a third party. 

In Canada it's ASCAP; I'm not sure in the U.S. When you steal music,
you're not hurting the artist, you're hurting the record company, and
as I said above, "paybacks are a bi_ch" Artists and consumers alike
have been ripped off by record companies for many years. 

Now they're suing the already unhappy and ripped off customers for
downloading music.


-- 
cparker
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cparker's Profile: http://forums.slimdevices.com/member.php?userid=2083
View this thread: http://forums.slimdevices.com/showthread.php?t=25158

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