The Problem With Music - By Steve Albini
This is an interesting article written in 1993 which first appeared in The Baffler Magazine. Albini dismantles the music industry and attacks the leeches which make money off of signed bands. He breaks the cost down to show how much money is raped from these artists in order to get their music out to the public.  Steve Albini is an influential singer, songwriter, guitarist, audio engineer and music journalist which became well known after producing “In Utero“. Here is an exerpt of the article:
 Whenever I talk to a band who are about to sign with a major label, I always end up thinking of them in a particular context. I imagine a trench, about four feet wide and five feet deep, maybe sixty yards long, filled with runny, decaying shit. I imagine these people, some of them good friends, some of them barely acquaintances, at one end of this trench. I also imagine a faceless industry lackey at the other end holding a fountain pen and a contract waiting to be signed.
Nobody can see what’s printed on the contract. It’s too far away, and besides, the shit stench is making everybody’s eyes water. The lackey shouts to everybody that the first one to swim the trench gets to sign the contract. Everybody dives in the trench and they struggle furiously to get to the other end. Two people arrive simultaneously and begin wrestling furiously, clawing each other and dunking each other under the shit. Eventually, one of them capitulates, and there’s only one contestant left. He reaches for the pen, but the Lackey says “Actually, I think you need a little more development. Swim again, please. Backstroke. And he does of course.
Advance: $250,000
Manager’s cut: $37,500
Legal fees: $10,000
Recording Budget: $150,000
Producer’s advance: $50,000
Studio fee: $52,500
Drum, Amp, Mic and Phase “Doctorsâ€: $3,000
Recording tape: $8,000
Equipment rental: $5,000
Cartage and Transportation: $5,000
Lodgings while in studio: $10,000
Catering: $3,000
Mastering: $10,000
Tape copies, reference CD’s, shipping tapes, misc expenses: $2,000
Video budget: $30,000
Cameras: $8,000
Crew: $5,000
Processing and transfers: $3,000
Offline: $2,000
Online editing: $3,000
Catering: $1,000
Stage and construction: $3,000
Copies, couriers, transportation: $2,000
Director’s fee: $3,000
Album Artwork: $5,000
Promotional photo shoot and duplication: $2,000
Band fund: $15,000
New fancy professional drum kit: $5,000
New fancy professional guitars (2): $3,000
New fancy professional guitar amp rigs (2): $4,000
New fancy potato-shaped bass guitar: $1,000
New fancy rack of lights bass amp: $1,000
Rehearsal space rental: $500
Big blowout party for their friends: $500
Tour expense (5 weeks): $50,875
Bus: $25,000
Crew (3): $7,500
Food and per diems: $7,875
Fuel: $3,000
Consumable supplies: $3,500
Wardrobe: $1,000
Promotion: $3,000
Tour gross income: $50,000
Agent’s cut: $7,500
Manager’s cut: $7,500
Merchandising advance: $20,000
Manager’s cut: $3,000
Lawyer’s fee: $1,000
Publishing advance: $20,000
Manager’s cut: $3,000
Lawyer’s fee: $1,000
Record sales: 250,000 @ $12 = $3,000,000 gross retail revenue Royalty (13% of 90% of retail): $351,000
less advance: $250,000
Producer’s points: (3% less $50,000 advance) $40,000
Promotional budget: $25,000
Recoupable buyout from previous label: $50,000
Net royalty: (-$14,000)
Record company income:
Record wholesale price $6.50 x 250,000 = $1,625,000 gross income Artist Royalties: $351,000
Deficit from royalties: $14,000
Manufacturing, packaging and distribution @ $2.20 per record: $550,000
Gross profit: $710,000THE BALANCE SHEET
This is how much each player got paid at the end of the game.
Record company: $710,000
Producer: $90,000
Manager: $51,000
Studio: $52,500
Previous label: $50,000
Agent: $7,500
Lawyer: $12,000
Band member net income each: $4,031.25
The band is now 1/4 of the way through its contract, has made the music industry more than 3 million dollars richer, but is in the hole $14,000 on royalties. The band members have each earned about 1/3 as much as they would working at a 7-11, but they got to ride in a tour bus for a month.
Read the entire article here: The Problem With Music
Filed under: Media
