Music Wars Scene 20:
Although a biased, anti-record label screed, this page gives a typical? example of how a new band can recieve a $250,000 advance, sell 250,000 copies of their new CD and end up with a net profit of about $4,000 for each band member:
In which we see that its really the record labels screwing the musicians
The Balance Sheet: This is how much each player got paid at the end of the game.via ampersand
Record company: $710,000
Previous label: $50,000
Band member net income each: $4,031.25
This is one of the main reasons the consumer has very little sympathy for the record labels, most people know that its the record companies making the bulk of the money here, not the musicians, the major labels hold all the cards, even hold the musicians hostage, if you will, forcing musicians to deal on their terms, and many time it bites a big fat one. In many cases the record companies hold the legal copyright to the songs, and royalties are never paid out, until other costs are recouped. P2P threatens the existing paradigm, and maybe its about time for a shift.