the RIAA on music economics

The cost of recording and promoting a major album can easliy top $1 million, and only one out of every ten ever turns a profit.

note: yes, easily is spelled wrong above

The quote above is from the RIAA. According to the RIAA: “The Recording Industry Association of America is the trade group that represents the U.S. recording industry.”, although it only represents some of the US recording industry.

He went on about how record companies need money to do “research and development,” and that they’re essentially “venture capitalists” who will sign somewhere around 20 new artists per season, lose money on 17 of them, break even on 2, and make a lot of money on 1. It’s that 1 artist, the Britneys and Jessicas, that make a ton of guaranteed money that allows the record company to sign less successful artists.

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