What percentage does a record label take from the artist?
Most record labels have no profits to speak of, as 95 percent of artists do not generate royalty checks, according to Berklee College of Music Professor Maggie Lange. In a major label, after all costs are paid and retail takes its cut, the label's profit is under 2 dollars per CD sold. or between 15 and 20 percent.
Large labels pay about $0.50 to $0.55 per CD on orders of 100,000 or more. Labels that buy less than 10,000 CDs per year pay approximately $1.20 per CD. Record labels pay two royalties: one to artists, and another to composers & publishers. Artists can receive 10% – 15% of suggested album retail minus packaging costs.
- In the music industry, a 360 deal (from 360° deal) is a business relationship between an artist and a music industry company. In turn, the artist agrees to give the company a percentage of an increased number of their revenue streams, often including sales of recorded music, live performances, publishing and more.
- The ultimate mark of commercial dominance is diamond status—10 million or more albums sold. Interestingly, according to the RIAA, neither Puff, 50, or Hov have individually reached that level with one album. But the voices behind these 19 certified diamond Rap and R&B albums have.
- According to the RIAA, these are the best-selling albums in American history.
- Eagles - Their Greatest Hits 1971 - 1975 // 29 million copies.
- Michael Jackson - Thriller // 29 million.
- Led Zeppelin - Led Zeppelin IV // 23 million.
- Pink Floyd - The Wall // 23 million.
- Billy Joel - Greatest Hits Volume I and II // 23 million.
Record Label Control Over Its Artists. Record labels typically set the terms and conditions of artist contracts in their favor. In the case of newly signed artists, record labels can control the type of music they record which can include everything from the way the music sounds to the song lyrics.
- Record Label Control Over Its Artists. Record labels typically set the terms and conditions of artist contracts in their favor. In the case of newly signed artists, record labels can control the type of music they record which can include everything from the way the music sounds to the song lyrics.
- IFPI Global Music Report 2017. The global recorded music market grew by 5.9% in 2016, the highest rate since IFPI began tracking the market in 1997, according to the IFPI Global Music Report 2017, released today. Total revenues for 2016 were US$15.7 billion.
- A recording contract (commonly called a record contract or record deal) is a legal agreement between a record label and a recording artist (or group), where the artist makes a record (or series of records) for the label to sell and promote.
Updated: 2nd October 2019