How much do recording artists really get from their CD sales profits?

Question

This came to me while recalling a debate some time ago about whether shutting down P2P programs would really make an impact on the dropping sales of CDs. Many times, the opposers of P2P programs say that the artist is being stolen from and is losing huge profits. ("They have to eat too, you know.")

The counter argument to this was that artists only get a small fraction of the money garnered from CDs, much like how an author gets only a few cents from selling a book, and that the losses are to be blamed on decreasing ticket sales.

I understand that the artist is not the only one involved in producing a CD. I just want to know how big their slice of the pie is.

Answer 1

Between 1 cent and a dime, depending on the contract. It doesn't sound like much, but if only 10,000 people download a song illegally instead of buying it, the artist still loses at least $1000--that's a lot of money for a new artist. Yet, some artists don't care, and would prefer to get their music out to the widest audience so that more people come see them perform--which is where they make real money. Obviously, the music business has to adjust how it distributes music to fit the times we live in, and to suit the wishes of the artist. Until then, I would suggest checking out any artists you enjoy live whenever possible!

Answer 2

Actually its not the artists that's complaining, because an artist gets a majority of its money from nationwide tours and not CDs, it only gets about 10 % of the CD sales, the other 90 percent are divided between his label, his parents label (i.e. Warner Bros) his lawyers and taxes. and a rapper is signed onto a contract so CD sales have nothing to do with it until his contract is up. People see music videos and see artist driving nice cars and living in big houses, but that's not the case, most of the products they have are rentals from the house to the jewelery to the car, the only big money makers in the game are rappers that own a big company or run it (i.e. Dr. Dre, Eminem, Jermaine Dupri, Jay.Z, 50 cent) they make the big money, new rappers like Young Joc, Young Dro, The Game, and others have to make money on tours or on mix tapes. That's why you always hear about rappers grinding trying to get out clothing lines, movies, real estates because that's where they make their money at. The 1 million they get for making one album they must invest that in all of those projects. But the fastest way a rapper can become rich is to be a producer, who nobody sees but makes they most money (i.e Cool and Dre, the Neptune's,) or create a label and hire new artist and get rich of a them (i.e 50 cent from G-unit, Eminem form 50 cent, and Dr Dre from Eminem) the system is put against the rapper, that's why so many go broke after 2 or 3 albums and you never see them again.

Answer 3

Writers/performers only get 9% of CD sales and currently receive even less from downloads, typically around 8%. Record company share of download revenue increases to 68% as opposed to 46% share of revenue from a CD. This is for paid downloads. Depending on how you crunch the numbers, you get different results when looking at revenue from p4p sharing of copyrighted songs.

If you assume that people download music instead of buying the music, in fact, the net effect is that both the artist and the record studio make no money off the sale. If you on the other hand assume that downloading music leads to more exploration of new types of music and increases CDs bought, you can figure that downloading keeps revenue constant or even increases it. The fact is, this is a very complex issue and every person has a unique buying pattern.

The more important question is whether or not this sort of copying is illegal. Currently, making copies of CDs you own is legal, as well as listening to music with the express consent of the copyright owner (this consent is implied for radio broadcasts and when you pay for the music). If you're not within these limits, you're illegally infringing on these copyrights. Whether musicians make less money or not, the law is very clear on the matter. On the other hand, all those times you photocopied a page out of a textbook for a school report were also technically illegal. But at least the book publishers didn't have your IP address to track you down...

Answer 4

Depends on their contract. At first they get next to nothing...unless they produce and release on a small label then sell the rights to a big recording company to get distribution later.

If an artist/group signs a desperation contract they might not make anything...Tom Petty made zippo until his third platinum album. Tom Fogerty still makes zippo off all the Credence Clearwater sales/air play.

Speaking of Air Play...that and touring is where bands/artists make their money. The Air Play thing only gets offered if the recording company doesn't think you will get any...it paid off big for punk bands in the 1980's and alternative bands in the 1990's.

A world tour can bring an artist playing big venues several million in profit because generally they get 30 or 40 percent of gate and all the profit from merchandise (tee shirts/hats etc.)

Answer 5

not much