Much is written about a paradigm shift in the music industry and technology and the web empowering artists. All that is true, but when money is the motivator, as it always will be for larger and public companies, exploitation of artistic expression will always be just a signature away.
From Nashville’s MusicRow.com comes a one music lawyer’s litany of the new and ever creative ways that record labels are trying to control and thus monetize music and the artists that produce it in the age of Music Business 2.0.
With declining sales labels are seeking new sources of revenue including:
- Requiring artists to create new products (ringtones, wall paper) for the cell market.
- Taking control of the artist web site to sell merchandise and even advertising.
- Control of and ability to license album artwork.
- Requiring that artists pay a portion of touring and merchandise revenue to the label.
- Lower royalty rates for expanding digital delivery services like subscription.
Labels are also looking for ways to increase revenue from existing streams including:
- Increasing the percentage of record company expenditures that are recoupable from the artist.
- Reducing the percentage of income the artist receives from product or track licensing.
Read the full Music Row article here.
