Chords for How The Music Industry Works
Tempo:
124.2 bpm
Chords used:
F#m
D#m
Em
F#
B
Tuning:Standard Tuning (EADGBE)Capo:+0fret
Jam Along & Learn...
I've never heard of a label that doesn't screw an artist.
audits their label, they're always owed money.
if nothing else, usually the label holds back enough money that your cost of auditing
So [D#m] that's the business model, is screwing the artist.
shady since the beginning [F#m] of time.
in since the 50s and 60s when rock and roll really started.
In [D#m] the 50s, they were screwing the artists then.
money involved.
audits their label, they're always owed money.
if nothing else, usually the label holds back enough money that your cost of auditing
So [D#m] that's the business model, is screwing the artist.
shady since the beginning [F#m] of time.
in since the 50s and 60s when rock and roll really started.
In [D#m] the 50s, they were screwing the artists then.
money involved.
100% ➙ 124BPM
F#m
D#m
Em
F#
B
F#m
D#m
Em
_ _ I've never heard of a label that doesn't screw an artist.
You talk to anybody who audits their label, they're always owed money.
And if nothing else, usually the label holds back enough money that your cost of auditing
is such that you won't do it.
So [D#m] that's the business model, is screwing the artist.
Their financial practices have been shady since the beginning [F#m] of time.
It's been grandfathered in since the 50s and 60s when rock and roll really started.
In [D#m] the 50s, they were screwing the artists then.
But there was much, much less money involved.
[F#m] Then as you start to go into the 60s and 70s, the hit-to-discount ratio is so [D#m] bad that they're
saying, hey, _ we can't pay the hit artist because he's paying for all the bad artists.
It goes back to how the music industry was set up in the very early stages of the [F#m] recording industry.
Taking advantage of uneducated, easily _ swayed artists who don't really care about the money.
Unfortunately, there's a lot of fallout _ [D] still with [D#m] bands getting paid.
We had to sue our label to get paid.
They've created this _ [F#m] strange, convoluted system that you have to be a lawyer to really understand
or a mathematician.
[D#m] _ A typical record deal is structured something like this.
The record label gives in advance, say, $250,000 to the artist to record an album.
_ The artist then records the album.
_ Suppose that the album sells 500,000 [Em] copies at $10 each, yielding $5 million. _
The record label then takes their cut out [B] of the $5 million, typically 85% of the total
sales, leaving the artist with [E] $750 [Em],000.
_ _ But before the artist receives any payments, the label first deducts the advance.
In addition, the record label recoups other costs such as recording costs, half the promotion
costs, half the video costs, and tour support.
This leaves the artist _ [F#m] $425,000 in debt to the record label.
And then this debt gets carried on to the next album, the next [F#m] album, and the next album.
_ _ I don't know if most people have [F#] seen long form contracts.
They're insane.
And there's all these little _ things thrown in.
It's kind of like legislating, [D#m] you know, legislature for a government.
They put up this big issue, but underneath that issue, there's like _ [F#] 17 other little laws
that they threw in that they're not talking about.
So when you say yes [D#m] to this one thing, you're actually saying yes to like 45 other things.
_ There's a worse one.
They used to have [F#m] damage fees with digital downloads.
Digital downloads, like at first they were doing that, like they just trying to get [D#m] away
with murder, you know, just like, let's leave it in there.
Let's see if the lawyer sees it kind of thing. _
Some other hidden items that the contract includes are packaging costs.
They deduct up to 25% of the artist's cut, known [F#m] as a royalty, to cover the expense of
plastic cases and artwork.
[G#] This cost is even administered to [Em] digital downloads where packaging is non-existent.
10% is deducted to cover breakage costs [B] during shipping.
This started in the vinyl era, continued when CDs replaced vinyl, and [Em] still applies today
with digital downloads.
_ The 10% free goods deduction is an antiquated system where retailers purchase 100 albums
but are given an additional 10 albums at no charge.
Since the artist is only paid on albums sold, they are not compensated for those free albums.
This deduction still [F#] continues even in a digitally dominated [F#m] market.
Artists generate so much money for so many people that have nothing to do with the creative
You talk to anybody who audits their label, they're always owed money.
And if nothing else, usually the label holds back enough money that your cost of auditing
is such that you won't do it.
So [D#m] that's the business model, is screwing the artist.
Their financial practices have been shady since the beginning [F#m] of time.
It's been grandfathered in since the 50s and 60s when rock and roll really started.
In [D#m] the 50s, they were screwing the artists then.
But there was much, much less money involved.
[F#m] Then as you start to go into the 60s and 70s, the hit-to-discount ratio is so [D#m] bad that they're
saying, hey, _ we can't pay the hit artist because he's paying for all the bad artists.
It goes back to how the music industry was set up in the very early stages of the [F#m] recording industry.
Taking advantage of uneducated, easily _ swayed artists who don't really care about the money.
Unfortunately, there's a lot of fallout _ [D] still with [D#m] bands getting paid.
We had to sue our label to get paid.
They've created this _ [F#m] strange, convoluted system that you have to be a lawyer to really understand
or a mathematician.
[D#m] _ A typical record deal is structured something like this.
The record label gives in advance, say, $250,000 to the artist to record an album.
_ The artist then records the album.
_ Suppose that the album sells 500,000 [Em] copies at $10 each, yielding $5 million. _
The record label then takes their cut out [B] of the $5 million, typically 85% of the total
sales, leaving the artist with [E] $750 [Em],000.
_ _ But before the artist receives any payments, the label first deducts the advance.
In addition, the record label recoups other costs such as recording costs, half the promotion
costs, half the video costs, and tour support.
This leaves the artist _ [F#m] $425,000 in debt to the record label.
And then this debt gets carried on to the next album, the next [F#m] album, and the next album.
_ _ I don't know if most people have [F#] seen long form contracts.
They're insane.
And there's all these little _ things thrown in.
It's kind of like legislating, [D#m] you know, legislature for a government.
They put up this big issue, but underneath that issue, there's like _ [F#] 17 other little laws
that they threw in that they're not talking about.
So when you say yes [D#m] to this one thing, you're actually saying yes to like 45 other things.
_ There's a worse one.
They used to have [F#m] damage fees with digital downloads.
Digital downloads, like at first they were doing that, like they just trying to get [D#m] away
with murder, you know, just like, let's leave it in there.
Let's see if the lawyer sees it kind of thing. _
Some other hidden items that the contract includes are packaging costs.
They deduct up to 25% of the artist's cut, known [F#m] as a royalty, to cover the expense of
plastic cases and artwork.
[G#] This cost is even administered to [Em] digital downloads where packaging is non-existent.
10% is deducted to cover breakage costs [B] during shipping.
This started in the vinyl era, continued when CDs replaced vinyl, and [Em] still applies today
with digital downloads.
_ The 10% free goods deduction is an antiquated system where retailers purchase 100 albums
but are given an additional 10 albums at no charge.
Since the artist is only paid on albums sold, they are not compensated for those free albums.
This deduction still [F#] continues even in a digitally dominated [F#m] market.
Artists generate so much money for so many people that have nothing to do with the creative