Shii Posted:

Except what you’re forgetting is the vast amounts of money record labels sink into artists. When a label finds a new artist, they give them an advance of $1,000,000 or so to make the album, be publicized, etc.

Then they take all the artists’ profits until they’ve recouped their money back. It might sound unfair, but just imagine if the artist isn’t a hit; they lose all that money.

They need to keep their pockets lined because they’re essentially gambling on every single new venture they do.

Plus, without that mbumive funding, the artist would have an extremely, extremely difficult time making it into the national limelight.

And if the best possible scenario is:

1) Record Company gives artist $1,000,000

2) Artist pays back $1,000,000

And there being a huge risk that the artist won’t make it big enough to pay back the label, how does it make it’s money them? Lawsuits against pirates?