I've always been interested in the way the music industry works.
Ever notice how labels like Roc-A-Fella, Murder, Inc., No Limit, and Bad Boy are merely distributed by major labels? They're smart...the real money is in owning the masters. More money for them, the majors (the ones mentioned above are distributed by VivendiUniversal) still make decent money, and (in most cases), the artist gets more green.
NPR did a story a few weeks ago about the record industry. It talked about how some artists are going with "indie" labels or starting their own labels because they tend to make more money upfront, without being owned by the record label. I also remember Brett Gurewitz (former guitarist for Bad Religion, owner of indie Epitaph Records) talking once about how a record on his label breaks even after only selling 2500 copies. Now, can you imagine how much money Epitaph made on the Offspring's CD "Smash" (which sold about 8 million copies, just in the US)?
If I ever did something with Sycamore, and we got big, I would only sign for a distribution deal. Otherwise, I'll find a CD manufacturer and put the shit out myself. (I happen to own my own label as it is--Sombra Recordings. I can handle the A&R shit myself.)
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