He should in fact understand the music business as that was his starting point, music journo.
Thousands of musicians who have signed contracts with corporate record companies and ended up in debt to their overlords (or “unrecouped”) receive no money at all.
This works the same way a company does. The record company here is the bank making a loan, the band are the shareholders. OK, so, the shareholders get dividends after the bank has been paid back the loan, right?
But the thing that annoys is this:
If you have the money and some remaining Christmas spirit, you should log out of Spotify, go to either an online outlet or a bricks-and-mortar record shop, buy a few physical products, and contribute a little to the livelihood of a musician or two. Given the magic they conjure up, it’s a very small price to pay.
A band that is unrecouped don;t get anything from the physical purchases either. It goes to repaying the loan.
We might also whinge at this:
The facts may now be well known, but that does not make them any less shocking: Spotify is estimated to pay about £0.0028 (or 0.28p) per stream to “rights holders”, a term that encompasses both massive record companies and artists who put out their own music; and on YouTube, the per-stream rate is put at a mere £0.0012.
So, what’s radio then? A guide is that Radio 1 will pay £100 for a song being played on the radio. To what, 1 million, 2 million people? Sure, it’s a different sum of money but it’s not that different on a per person basis, is it?