Paramore Claim they are not manufactured ---- two members are brothers. This could be a reason against them being manufactured because they weren't just thrown together they knew each other before. "Pushing around" record label making them do things they dont want to so they can make more money. "Major label puppet" This is what most manufactured artists are.
Unexpected Manufactured Bands
All recorded music is manufactured. This is because of mixing and mastering. The bands are assembled by a producer, usually for the sake of market ability. Often chosen based upon physical apperance, sex appeal and personality. Their goal is to tap into the tastes of mainstream audiences Very few manufactured bands achieve lasting fame. However there are some exceptions. For example take that.
http://themusicbusiness.wordpress.com/2010/01/09/record-label-comparison/
There are two different types of record labels major and independent. Majors operate world wide. Sony is one of four majors.
Independents operate in different ways. This depends on size, money and repertoire.
Major - Strengths - Own distribution and publishing companies. Access to international distribution. Can influence radio plays. Large amounts of money to offer and back artists with. High levels of contacts able to add value to products,
Weaknesses - can't adapt quickly too large.
Opportunities - Ability to take control of online distribution can develop partnerships with big companies.
Independent - Strengths - Can adapt to change.
Weaknesses - Limited power to sign acts. Less money to invest in acts and marketing. Cater for certain genres.
Opportunities - Bands more inclined to sign because they allow them to develop.
Threats - Majors often buy independents which dominate the market.
http://www.musiclawupdates.com/?p=156
Rapid use of so-called "Net Profit Deals" This is an alternative to traditional type of record deals. This is mostly used with independent record deals.
This idea is that net profits will be split between artists and the record label. This happens after all expenses connected with the artists deal has been deducted by the label from record sales income.
Traditional deals are where artists are paid on a royalty basis. Artist royalties range between 12 to 15% of the retail price. This is sometimes higher for established artists.
To get net profits the company deducts off the top its actually out of pocket costs for recording, manufacturing, promoting and marketing. After all these are deducted the label pays the artist the percentage of their contracts require. Normally 50%
In traditional record deals the artist starts getting royalties after the companies have recouped the recording costs. All other cost E.G promo costs are paid out of its own pocket. These don't factor into calculations.
360 deals - Major labels. It is made of two parts.
Part 1 - Pertains to record sales and contains the same terms as a traditional deal.
Part 2 - Gives the label the right to receive a percentage or certain other income streams E.G touring and merchandise income.
The terms vary substantially from deal to deal. A lot depends on the track record and negotiating from artist. A full 360 deal allows labels to share in all entertainment industry. Music publishing, Product endorsements, Book publishing ect. However, numerous 360 deals aren't full 360. This is because they only share certain types of income.
Usually the labels of non record income is in the range of 10 to 20% but for new artists its as high as 50%
Advantages - for label - Net profit deals the label doesn't have to pay the artist anything. This is until they have recouped all costs fronted by the labels.
Disadvantages - for label - Is the back end. This is if the records are successful and the costs small in comparison. This makes the deal less profitable for the label than the traditional.
Advantages - Artist - If record sales are substantial and costs are reasonable the the artist may come out better than with traditional.
The idea of 50 50 split seems more fair and understandable. Some artists prefer the general feel. This can more like a partnership and collaborative relationship.
However the label may receive more than 50% net income. This is because of "overheads" and other costs.
Artists also need to discuss this net deal with a publisher and co writers. This may affect their income aswell. Without this it can cause legal and relationship problems.
Disadvantages- artists - mechanical royalty issues - In traditional artists who write songs are entitled to these on all record sales on quarterly and semi - annual basis. These are crucial cash flow for more artists.
These are handled in two ways - similar to traditional record deals they may be treated as an advance and later deducted from net profits or no separate royalties will be paid to the artist for original material. They will only a share if net profit. This will be stated in the contract.
This leads to cash flow problems and it can take a long time for artists to receive their share.
Audit issues - This is because to know whether their being paid properly is to verify all income and all expenses. Audits can also be very expensive costing $15,000 to $20,000.
Merchandising - The band shares net profit for sales. However the label sale of such items reduces the artists own sales of items. Merchandise income is big part of survival on the road. They tend to avoid giving the label the right to sell t-shirts and other merch or negotiating it.
Overhead fees - These can be removed from contract or reduced when negotiated.
Major labels spend more on recording costs and marketing than independents.
Included in contracts - The "Term" - How long the artists will be recording for the label. How many albums the artist will record. Usually starts with one. After the label has released all albums the term ends. Even after the term ends the label is still under contract to continue selling albums recorded during the term. They also continue owning the copyrights of those albums.
The "Territory" - Allows record companies to sell records worldwide. However the contract may only allow the label to sell in certain territories. This is more likely to happen in a one - record independent deal. This is where the artist has already made the record themselves.
Ownership of masters - In traditional the label usually owns the masters and copyright. This will typically continue for full life of the copyright. Along time after bands are no longer together. In net profit the masters either owned by the artists and label jointly or just by the record company alone.
Marketing and promotional issues - In both the artists should seek the right to approve major marketing and promo decisions.
Approval rights - Both usually contain other clauses. For example right of approval over the studio and producers used.
Accounting - Regularly provide artists with accounts for record sales along with payments of anything owed to the artist.
Co publishing rights - Usually a separate contract . This gives the label part ownership on artists songs. They share the right in publishing income outside sources. E.G when a song is "covered" by another artists. This happens more with indie labels. It is not an artists best interest to give away co-publishing rights. If the artists is not receiving a substantial cash advance.
http://www.dailymail.co.uk/tvshowbiz/article-468409/Prince-determined-revolutionise-music-industry.html
Warner records - major
"Charts are just music industry constructions and have little or no relevance to fans or even artists today"
He went on strike - he regained control of the publishing rights to his work.
"Never really took to the traditional label - artist relationship"
"internet is a reality the music industry is finished"
"Would you want somebody living off your work"
"complicated dispute with warner over a six - album deal signed in 1992 he announced he was changing his name to a symbol"
