On 27 Feb 2002 at 12:12, Kate Bennett wrote: > >>>Record companies do not get paid by radio stations for airplay.<<< > > Instead they pay radio stations (through a third party) for radio > play. Marketing dollars which I imagine get charged back to the > artists account.
Generally the only marketing expenses that are charged against the artist account are 50% of music videos and 100% of tour support, along with 100% of the recording costs. The only time independent radio promotion money (read: payola) is charged to the artist is if the artist has a minimum amount that they want the label to spend written into their contract, in which case, 50% is charged. Artist representatives ask for this built in promotion spend because it is supposed to "guarantee" that the label will work a single at radio. (Many also ask for built-in minimums for music videos and for independent publicists. The artist has to already have a track record or be the object of a bidding war to get these types of guarantees.) It is also aimed at pushing the label financial commitment up high enough so they will feel compelled to work the project with enough effort to get their money back. As evidenced by EMI's payout of Mariah Carey, sometimes label are willing to just write off the loss rather than proceed. Brenda n.p.: Maggie's Dream - "It's A Sin"
