Music Contracts (Management and Recording)
Task 3 '' Understand aspects of record contracts
1) What does a record company do for a band?
Record companies are in the business of finding new bands or solo people and making money out of them from selling CD’s and downloads, and from getting royalties when the music is played on radio or TV or in a live performance.
It is the job of a record company to take a song and turn it into something that can be mass marketed for a band and so benefit the band and also the record company.
Generally a record company will agree a deal with a band or artist that will take on the financial responsibility for the recording of the album, covering money for stuff like recording in a studio, mixing, mastering with studio engineers and physically making the album. The record company will also create art work for the album and sort out the promotion for the album and its release.
Sometimes the band can get an advance of money up front to help them with their own expenses.
The band is entitled to 2 royalties for its work produced with a record company, a record sales royalty and a performance royalty. But these monies are only paid from any money made on an album when the record company has claimed back the money that was given in advance.
2) Assess the positive and negative aspects of a record contract from the point of view of the artist.
A record contract is what most bands and solo artists want to get as it is a big step to having somebody take your work seriously and might lead to the release of an album which is what we all want.
A record contract though is not a guarantee for success and there are good points and bad points to having one.
First positive aspect of getting a recording contract is that very often you will be able to get and upfront advance of money against any profit made from your music. This can help maybe because...