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 Music discussion - hardcore
 

Record profits

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redwingz
Advanced Member



United Kingdom
2,483 posts
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redwingz has attended 3 events
Posted - 2009/06/30 :  12:17:39  Show profile  Send a private message  Visit redwingz's homepage  Reply with quote
I would say there is hardly any money in either.

Juno will buy vinyl for, like people said, around £2 per unit off a label, IMO may buy for a little more (i know they do with CDs)

Therefore, £1 to label and £1 to artist, but say your vinyl has 4 tracks on it from different artists, thats only 25p per artist on the vinyl.

An mp3 should also be split 50/50. Trackitdown sell mp3s for £1.49......heres how that breaks down....
99p to trackitdown
25p to label
25p to artist

There is very little profit in either to be honest.

What you have to remember is that vinyl also has a manufacturing cost.....say you pay £500 to get 500 vinyls pressed, the label has to recover costs, so if you sell to distributors for £2 each, only £1 of that is profit.........so......
£2 x 500 copies = £1000
£500 to label to recover costs
£250 to label for royalties
£250 to artist for royalites.

To sell 500 vinyls though, you will have to be a big name......to shift 30-40 mp3s, you will need to be an established name.

The main profit is gigs and cd compilation appearences.

I would say, buy which ever is prefered for you, because only around 20% of what you pay goes to the artists anyway.


__________________________________
Audioshift

http://www.trackitdown.net/recordlabel/111477/nsr-records.html

http://www.nsrrecords.co.uk

http://www.imodownload.com/NSR-Records

http://www.junodownload.com/labels/NSR


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Starstruck
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Australia
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Starstruck has attended 5 events
Posted - 2009/06/30 :  12:23:05  Show profile  Send a private message  Visit Starstruck's homepage  Reply with quote
@ Samination:

What are you meaning regarding filesharing?

No, i never had minds of setting a low bar, with my label and music i've always aimed as high as possible. I'm starting up a vinyl label with SOMEONE (cant mention atm :P) and that'll probably be up around early 2010, this is because i feel that digital sale and marketing of music is really limited. It's simple for someone to do, and as a label owner you can't sit around and run a digital label all your life. Vinyl sale is much more serious business including many risks and lots of new areas to venture into.

Regarding "But it's nice to see someone, just like Lethal Theory, that doesn't just nag about the negative aspect of digital sales and tells us it actually does sell... or did you set a very low bar?"

I don't really like seeing digital labels whine about filesharing when they're not putting alot of effort into promotion / marketing or they dont have good material, kinda ironic isnt it. I'm pretty sure filesharing shouldn't be a big issue if you've got your mind and plans set right. I'm not referring to any label owner or label here, i'm just kinda proving a point.

Whilst i am very very much against filesharing personally, it's a reality that everyone has to accept really. Digital releases DO sell, and theres nothing that can be done about filesharing.



__________________________________
Starstruck - Australia With Force Records


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Samination
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Sweden
13,281 posts
Joined: Jul, 2004


195 hardcore releases
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Posted - 2009/06/30 :  13:43:51  Show profile  Send a private message  Visit Samination's homepage  Reply with quote
redwingz: that's why I rather pay an artist to send me the tracks instead :)
To bad that taxes need to be involved in that...

quote:
@ Samination:

What are you meaning regarding filesharing?


Do you mean what I think of filesharing, or that you didnt understand what I meant in my previous post?


__________________________________
---------------------------------------------
Samination, Swedish Hardcore DJ
Happy, UK Hardcore, Freeform, Makina and Gabber
http://samination.se/
---------------------------------------------


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Meathead
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United Kingdom
4,217 posts
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Posted - 2009/06/30 :  14:12:33  Show profile  Send a private message  Visit Meathead's homepage  Reply with quote
Oh will you lot (actually its mainly samination) piss off with your ****ing filesharing debate! That isnt why i started this topic. I understand that topics drift off into other discussions but come on there's another topic for filesharing and not everything is about filesharing. Christ!

Thank you to all who replied actually answering my questions. I guess there isnt much of a difference in profit (if profit is indeed gained at all) either way.


__________________________________
"Music creates order out of chaos; for rhythm imposes unanimity upon the divergent, melody imposes continuity upon the disjointed, and harmony imposes compatibility upon the incongruous." -Sir Yehudi Menuhin


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Edited by - Meathead on 2009/06/30 14:13:28
Samination
Advanced Member



Sweden
13,281 posts
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195 hardcore releases
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Posted - 2009/06/30 :  14:46:48  Show profile  Send a private message  Visit Samination's homepage  Reply with quote
quote:
Originally posted by Meathead:
Oh will you lot (actually its mainly samination) piss off with your ****ing filesharing debate! That isnt why i started this topic. I understand that topics drift off into other discussions but come on there's another topic for filesharing and not everything is about filesharing. Christ!

Thank you to all who replied actually answering my questions. I guess there isnt much of a difference in profit (if profit is indeed gained at all) either way.



Wasn't my intention to make this another filesharing thread, but as starstruck mentioned, filesharing is here to stay, and he propably counted that into his profit calculations


__________________________________
---------------------------------------------
Samination, Swedish Hardcore DJ
Happy, UK Hardcore, Freeform, Makina and Gabber
http://samination.se/
---------------------------------------------


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Meathead
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United Kingdom
4,217 posts
Joined: Sep, 2006
Posted - 2009/06/30 :  15:12:36  Show profile  Send a private message  Visit Meathead's homepage  Reply with quote
quote:
Originally posted by Samination:
Wasn't my intention to make this another filesharing thread, but as starstruck mentioned, filesharing is here to stay, and he propably counted that into his profit calculations




quote:
Originally posted by Samination:
quote:
Originally posted by Starstruck:
Digital on the other hand can be pretty good as well! Whilst i probably can't tell you how many unit's im selling, the label is much better than i, (and everyone else i'd show my plans etc) antipated.



May I inquire how the filesharing aspect was inserted to that?



Where did he mention filesharing? He didnt. I was asking the question of how much profit PER UNIT a release makes, nothing whatsoever about bloody filesharing. Please if you still have more to say about filesharing after that huge 7 or whatever page thread dedicated to it then please direct your questions etc there. This thread was simply to get an idea of profits PER UNIT SOLD so therefore filesharing doesnt even enter into it. So please dont taint it with your bloody filesharing twaddle.

Actually im done with this topic, ive got my answers, do what you like.


__________________________________
"Music creates order out of chaos; for rhythm imposes unanimity upon the divergent, melody imposes continuity upon the disjointed, and harmony imposes compatibility upon the incongruous." -Sir Yehudi Menuhin


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Edited by - Meathead on 2009/06/30 15:14:26
Craigavon raver
Advanced Member



Ireland
2,238 posts
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Craigavon raver has attended 1 event
Posted - 2009/07/02 :  19:21:48  Show profile  Send a private message  Visit Craigavon raver's homepage  Reply with quote
quote:
Originally posted by redwingz:
I would say there is hardly any money in either.

Juno will buy vinyl for, like people said, around £2 per unit off a label, IMO may buy for a little more (i know they do with CDs)

Therefore, £1 to label and £1 to artist, but say your vinyl has 4 tracks on it from different artists, thats only 25p per artist on the vinyl.

An mp3 should also be split 50/50. Trackitdown sell mp3s for £1.49......heres how that breaks down....
99p to trackitdown
25p to label
25p to artist

There is very little profit in either to be honest.

What you have to remember is that vinyl also has a manufacturing cost.....say you pay £500 to get 500 vinyls pressed, the label has to recover costs, so if you sell to distributors for £2 each, only £1 of that is profit.........so......
£2 x 500 copies = £1000
£500 to label to recover costs
£250 to label for royalties
£250 to artist for royalites.

To sell 500 vinyls though, you will have to be a big name......to shift 30-40 mp3s, you will need to be an established name.

The main profit is gigs and cd compilation appearences.

I would say, buy which ever is prefered for you, because only around 20% of what you pay goes to the artists anyway.



but what if the artist owns the record label like scott brown evolution,sy+ unknown quosh e.t.c they get half then


__________________________________
h.t.i.d


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Starstruck
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Australia
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Posted - 2009/07/03 :  03:41:05  Show profile  Send a private message  Visit Starstruck's homepage  Reply with quote
For a vinyl lable, no one gets paid from a cut of the revenues until all the expenses are covered from the revenue.

i.e,

costs such as
sleeve artwork
pressing
remix fee
mastering
any upfront payments


__________________________________
Starstruck - Australia With Force Records


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silver
Admin



Japan
12,579 posts
Joined: Feb, 2001


894 hardcore releases
silver is verified hardcore artist silver is a site donation subscriber silver has attended 108 events
Posted - 2009/07/03 :  05:37:07  Show profile View artist profile  Send a private message  Visit silver's homepage  Reply with quote
quote:
Originally posted by Starstruck:
For a vinyl lable, no one gets paid from a cut of the revenues until all the expenses are covered from the revenue.

i.e,

costs such as
sleeve artwork
pressing
remix fee
mastering
any upfront payments



That is just 1 type of deal, it is the most common for vinyl (because it's a 50 / 50 share)


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Starstruck
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Australia
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Posted - 2009/07/03 :  07:55:24  Show profile  Send a private message  Visit Starstruck's homepage  Reply with quote
yep, ive found its the most common method in hardcore example, do you agree?

__________________________________
Starstruck - Australia With Force Records




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redwingz
Advanced Member



United Kingdom
2,483 posts
Joined: Jan, 2005
redwingz has attended 3 events
Posted - 2009/07/03 :  12:38:01  Show profile  Send a private message  Visit redwingz's homepage  Reply with quote
quote:
Originally posted by Craigavon raver:
quote:
Originally posted by redwingz:
I would say there is hardly any money in either.

Juno will buy vinyl for, like people said, around £2 per unit off a label, IMO may buy for a little more (i know they do with CDs)

Therefore, £1 to label and £1 to artist, but say your vinyl has 4 tracks on it from different artists, thats only 25p per artist on the vinyl.

An mp3 should also be split 50/50. Trackitdown sell mp3s for £1.49......heres how that breaks down....
99p to trackitdown
25p to label
25p to artist

There is very little profit in either to be honest.

What you have to remember is that vinyl also has a manufacturing cost.....say you pay £500 to get 500 vinyls pressed, the label has to recover costs, so if you sell to distributors for £2 each, only £1 of that is profit.........so......
£2 x 500 copies = £1000
£500 to label to recover costs
£250 to label for royalties
£250 to artist for royalites.

To sell 500 vinyls though, you will have to be a big name......to shift 30-40 mp3s, you will need to be an established name.

The main profit is gigs and cd compilation appearences.

I would say, buy which ever is prefered for you, because only around 20% of what you pay goes to the artists anyway.



but what if the artist owns the record label like scott brown evolution,sy+ unknown quosh e.t.c they get half then



If scott brown releases his own track on evolution, he would of course get the label and artist split.

Why do you think so many producers own their own labels? Its a 50/50 split, they make the same money from their label as they do as an artist


__________________________________
Audioshift

http://www.trackitdown.net/recordlabel/111477/nsr-records.html

http://www.nsrrecords.co.uk

http://www.imodownload.com/NSR-Records

http://www.junodownload.com/labels/NSR


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