1. Welcome to SportsJournalists.com, a friendly forum for discussing all things sports and journalism.

    Your voice is missing! You will need to register for a free account to get access to the following site features:
    • Reply to discussions and create your own threads.
    • Access to private conversations with other members.
    • Fewer ads.

    We hope to see you as a part of our community soon!

Court ruling screws labels, favors artists

Discussion in 'Sports and News' started by slappy4428, Sep 4, 2010.

  1. slappy4428

    slappy4428 Active Member

    I don't know everything about this, but record companies could be fucked...

    Court ruling could mean millions in online royalties for Eminem, other artists

    Free Press Pop Music Writer
    Eminem probably thought he'd be waking up this morning to focus entirely on his concert tonight at Comerica Park.

    Instead he got a bit of unexpected news from a federal appeals court in California: some major money could be headed his way.

    The decision, which one Eminem attorney calls an “earthquake” for the music industry, could transform the online song business and boost the fortunes of untold numbers of artists.

    Reversing a lower-court jury decision from last year, the court ruled that Eminem and his production company are entitled to nearly triple the royalties they've been receiving for track sales and ringtones on online services such as iTunes.

    For Eminem, who has sold more than 6 million downloads this year alone, that could mean tens of millions of dollars in new income.


    This caught my eye...
    Universal argued that Eminem should be paid a standard 18% royalty rate for those sales, as he is for physical copies. FBT contended that providing a song to iTunes was actually a third-party licensing situation, similar to film and television deals, which calls for a 50% royalty rate.
  2. Starman

    Starman Well-Known Member

    Awww, boo hoo for the poor record companies.
  3. slappy4428

    slappy4428 Active Member

    Hey, I didn't say it was a bad thing...
  4. Football_Bat

    Football_Bat Well-Known Member

    Curt Flood smiles from above.
  5. YankeeFan

    YankeeFan Well-Known Member

    Sounds like good news for Eminem, but I'll bet it'll hurt lesser known artists.

    As long as record companies play a role in breaking new talent, what hurts record companies is going to hurt new artists.

    The business model of record companies has been hurt as badly as newspapers.
  6. schiezainc

    schiezainc Well-Known Member

    Fuck record companies. I still haven't forgiven them for charging $18 for a new CD in the 90's. They deserve whatever happens to them.
  7. txsportsscribe

    txsportsscribe Active Member

    either way, it appears i make more money per itunes download than eminem. now lets not talk about total sales.
  8. YankeeFan

    YankeeFan Well-Known Member

    You guys are funny. Sure, record companies have screwed artists over the years.

    But wishing death on record companies isn't going to help artists any more than the death of newspapers helps writers.

    Established artists can cut out the middle man & sell direct to the consumer. But record companies fund artists studio time/album, get them radio airplay, and book them as support acts on their bigger acts' tours.

    If record companies make less money, they'll fund less bands, and concentrate on an ever smaller number of established bands.
  9. Beef03

    Beef03 Active Member

    I thought that's why we have American Idol, afterall they have delivered us such quality artists in the past as . . . a little help here?
  10. sportsguydave

    sportsguydave Active Member

    Not sure that's necessarily the case, YF. There's always going to be a demand for new artists. Name one band today that's still going to be around/relevant in 20-30 years. The days of the Who/Stones, bands that keep at it for 40-50 years are coming to an end. Thankfully, IMO.

    The companies that don't beat the bushes and find the new talent will be the ones that lose in the end. If they don't give the consumer what they want, they'll go out of business. And I'm not an expert, but a 50-50 split still sounds pretty fair to me. If an exec or two has to downsize their mansion or sell a Mercedes or two, so be it.
  11. old_tony

    old_tony Well-Known Member

    In this day and age, are record companies even necessary? Seriously. The technology is now so available that recording studios aren't backed by record companies. Bands are forming their own record companies to make their stuff available on CD and mp3 or whatever. In effect, aren't "record" companies nowadays just management companies?
  12. PCLoadLetter

    PCLoadLetter Well-Known Member

    Essentially, yes.

    I believe Madonna's current "record deal" is with Live Nation. The old school labels are dying -- and it's hard to see that as a bad thing.
Draft saved Draft deleted

Share This Page