Little Known Music Business Facts

Did You Know...

Secrets, Myths and Other Little Known Facts
In and Around the Music Business

Did U Know...

…that an Artist makes no money when a song is played on the radio ["Airplay"], but the Songwriter and Publisher do?

Why? The Songwriters and Publishers are members of a Performing Rights Society, either ASCAP, BMI, or SESAC, that licenses, collects and distributes money for it's members, for "Usage" of it's songs. Artists cannot become members unless they are also a writer of that particular song, and/or publisher…

Did U Know…

…that for many years some of the Major Record Companies and subsidiaries have looked for white artists who sound black, and black artists who sound white?

Why? "Crossover" potential - not alienating the other side from being interested in their Artists. Do they still practice this? Listen to the radio…

Did U Know…

...there's nothing in a recording Agreement that guarantees that a Record company has to release anything that you've recorded. As one influential major label head surprisingly stated on national TV - "Well, I think we'll record around 42 albums this year and maybe release about 28 of them".

Why? It allows the Companies to not distribute finished records they aren't convinced are worth pushing - ones they believe won't sell enough to be worth the expense of time and money to push.

There are other reasons, too. I remember the instance where the Pop division of a major label was fighting the R&B division of that label for the right to that particular album - months passed, and the Artist meanwhile "died".

Did U Know…

...that the "Power of Attorney" clause found in many agreements gives the person the power to sign a person's name to any type of Agreement even without the creative person's OK? If it wasn't for a person having to take a physical, they can practically sign you into the army!

Why? It allows the businessperson, usually a Manager or Producer/Production team, the right to make deals THEY feel is best [hopefully] for the Artist. This clause should definitely be modified by Artist's attorney so that major contracts must first have Artist's prior written approval before signing.

Did U Know…

…that many experienced independent producers remember to subtract 20 years from the present, and have at least a piece of that era’s music put into the music.

Why? Because the people in the biz end of music were brought up hearing that style of music when they were young – when that phenomenon called music really “sticks” in your brain. So, when the execs hear a bit of it in a newly presented song, it gives them some comfort, though they often don’t realize why…

Did U Know…

…that often the best lawyers to hire when you're offered a deal by a Record Company, or when you are trying to get a deal with a Record Company, are ones who also might work often with, and for that particular company?

Why? The Companies are already comfortable dealing with these attorneys, for one reason or another, usually because they've worked with him or her before, and that they probably already represent prominent Artists on the Company's roster. If you set it up right, the lawyer will still look out for you because he/she will be getting a percentage of the deal - the more he gets for you, the more he/she makes… And usually, they can get you a much better deal than an Attorney who doesn't normally deal with that company…

Did U Know…

…it is easier to find investors who can invest 20,000,000, than finding ones who will invest 20,000?

Why? To somebody who has real money, it's got to be worth their while to invest money - a big return. The people who might be interested in investing in the smaller amount, usually can't really afford it.