Record Deals and Music Industry Dynamics

This set of flashcards covers key terms and concepts related to record deals, distribution, and the music industry.

Record Label

An entity that manages the production and distribution of music.

Major Labels

The largest record labels in the music industry that have significant control over market share.

Independent Labels

Self-owned or part of an independent label group, often with less market power than major labels.

EMI

A major record label that was broken up and sold in 2012.

Master Ownership

Refers to who retains rights to the original recording of music.

360 Deal

A contract where the label receives a percentage of all artist income streams related to their career.

Advance

An upfront payment made by the label to the artist against future royalties.

Re-coupment

The process through which a label recovers the advance paid to an artist before paying royalties.

Cross-collateralization

A practice where multiple album advances are combined to calculate recoupment.

Penny Rate

The amount an artist earns per sale after deductions.

Royalty Structure

The framework that determines how artists get paid based on sales and distribution.

Delivery Requirements

Set criteria that must be met for an album to be accepted by a label.

Digital Aggregators

Services that distribute music across streaming platforms, often with an open access model.

Streaming Royalties

Income generated from the streams of music on platforms like Spotify and Apple Music.