What happened to the entertainment industry? Well, simply put, it was piracy, but before that little Napster man reared his ugly head in, was the industry actually fair to its musicians and consumers?
The big four ran a cartel on the industry, preventing competition, charging far too much for albums, and ripping off their hard working musician clientele. Hypebot researched the traditional record deal to see which involved parties benefit. Of total revenue, 63% went to the record label, 24% to the distributors, while only the remaining 13% was awarded to the hard working artists. The 13% awarded to musicians must then be allocated to their respective managers, agents, attorneys, etc.
Signing a deal with a record company was once a status symbol. Musicians, signed with one of the big four record labels, could be sure to at least have their music heard. Now these labels are, in desperation, trying to reformat the traditional record deal into what is now known as the 360 Deal. It seems foolish to allow these companies to force musicians into unfair contracts; contracts compromised by unchecked industry power and control.
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