"Ultimately, artists need record companies just as much as record labels need artists."--David Moser, Guest Commentary, Billboard, August 7, 1999

Well, let's see.

WITHOUT RECORD COMPANYWITH RECORD COMPANY
Artist makes record. Artist makes record
Artist pays for making record with loan from bank. Bank is federally regulated business. Artist pays for making record with money deducted from potential artist royalties. Record company is unregulated business, known for stealing from royalty accounts.
Artist pays for all record pressing and therefore knows exactly how many were pressed Record company presses record and will not allow artist to audit how many are pressed
Artist collects all money from sale of recording Record company collects all money from sale of record
Artist receives all money beyond expenses if there is any Artist receives between zero and 25% of amount of money made on records the company decides to admit it pressed
Artist devotes full effort possible to marketing and promotion of record Record company markets and promotes the record if it feels like it
Artist collaborates with whatever other musicians he or she wishes Artist collaborates with whatever other musicians the record company allows
If artist is inspired by another's music, he/she adapts it (creative process); artist must pay for "rights" If artist is inspired by another's work, he/she has to beg permission and may be told "No"; artist must pay for "rights"
Artist owns copyright and controls future use of recording Record company owns copyright and controls future use of recording

Back to "Why Do We Need the Music Industry?"


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