This is pretty long, but what I've read of it sounds pretty interesting.
I believe that Steve Albini is a record producer. At least I know of
a Steve Albini that does this. He is known for making pretty
raw sounding stuff. He was the producer on Nirvana's "In Utero"
disc. Perhaps what he says is similar to what happens with
movie productions?
> > The Problem With Music
> > by Steve Albini
> > excerpted from Baffler No. 5
> >
> > Whenever I talk to a band who are about to sign with a major
label, I always end up
> > thinking of them in a particular context. I imagine a
trench, about four feet wide and
> > five feet deep, maybe sixty yards long, filled with runny,
decaying shit. I imagine these
> > people, some of them good friends, some of them barely
acquaintances, at one end of
> > this trench. I also imagine a faceless industry lackey at
the other end, holding a
> > fountain pen and a contract waiting to be signed.
> >
> > Nobody can see what's printed on the contract. It's too far
away, and besides, the
> > shit stench is making everybody's eyes water. The lackey
shouts to everybody that
> > the first one to swim the trench gets to sign the contract.
Everybody dives in the
> > trench and they struggle furiously to get to the other end.
Two people arrive
> > simultaneously and begin wrestling furiously, clawing each
other and dunking each
> > other under the shit. Eventually, one of them capitulates,
and there's only one
> > contestant left. He reaches for the pen, but the Lackey
says, "Actually, I think you
> > need a little more development. Swim it again, please.
Backstroke."
> >
> > And he does, of course.
> >
> > I. A&R Scouts
> >
> > Every major label involved in the hunt for new bands now has
on staff a high-profile
> > point man, an "A&R" rep who can present a comfortable face
to any prospective band.
> > The initials stand for "Artist and Repertoire," because
historically, the A&R staff would
> > select artists to record music that they had also selected,
out of an available pool of
> > each. This is still the case, though not openly.
> >
> > These guys are universally young [about the same age as the
bands being wooed],
> > and nowadays they always have some obvious underground rock
credibility flag they
> > can wave. Lyle Preslar, former guitarist for Minor Threat,
is one of them. Terry Tolkin,
> > former NY independent booking agent and assistant manager at
Touch and Go is one of
> > them. Al Smith, former soundman at CBGB is one of them. Mike
Gitter, former editor of
> > XXX fanzine and contributor to Rip, Kerrang and other
lowbrow rags is one of them.
> > Many of the annoying turds who used to staff college radio
stations are in their ranks
> > as well.
> >
> > There are several reasons A&R scouts are always young. The
explanation usually
> > copped-to is that the scout will be "hip" to the current
musical "scene." A more
> > important reason is that the bands will intuitively trust
someone they think is a peer,
> > and who speaks fondly of the same formative rock and roll
experiences.
> >
> > The A&R person is the first person to make contact with the
band, and as such is the
> > first person to promise them the moon. Who better to promise
them the moon than an
> > idealistic young turk who expects to be calling the shots in
a few years, and who has
> > had no previous experience with a big record company. Hell,
he's as naive as the band
> > he's duping. When he tells them no one will interfere in
their creative process, he
> > probably even believes it.
> >
> > When he sits down with the band for the first time, over a
plate of angel hair pasta, he
> > can tell them with all sincerity that when they sign with
company X, they're really
> > signing with him and he's on their side. Remember that
great, gig I saw you at in '85?
> > Didn't we have a blast.
> >
> > By now all rock bands are wise enough to be suspicious of
music industry scum. There
> > is a pervasive caricature in popular culture of a portly,
middle aged ex-hipster talking a
> > mile-a-minute, using outdated jargon and calling everybody
"baby." After meeting
> > "their" A&R guy, the band will say to themselves and
everyone else, "He's not like a
> > record company guy at all! He's like one of us." And they
will be right. That's one of
> > the reasons he was hired.
> >
> > These A&R guys are not allowed to write contracts. What they
do is present the band
> > with a letter of intent, or "deal memo," which loosely
states some terms, and affirms
> > that the band will sign with the label once a contract has
been agreed on.
> >
> > The spookiest thing about this harmless sounding little
"memo," is that it is, for all legal
> > purposes, a binding document. That is, once the band sign
it, they are under obligation
> > to conclude a deal with the label. If the label presents
them with a contract that the
> > band don't want to sign, all the label has to do is wait.
There are a hundred other
> > bands willing to sign the exact same contract, so the label
is in a position of strength.
> >
> > These letters never have any term of expiration, so the band
remain bound by the deal
> > memo until a contract is signed, no matter how long that
takes. The band cannot sign
> > to another label or even put out its own material unless
they are released from their
> > agreement, which never happens. Make no mistake about it:
once a band has signed a
> > letter of intent, they will either eventually sign a
contract that suits the label or they
> > will be destroyed.
> >
> > One of my favorite bands was held hostage for the better
part of two years by a slick
> > young "He's not like a label guy at all,' A&R rep, on the
basis of such a deal memo. He
> > had failed to come through on any of his promises (something
he did with similar effect
> > to another well-known band), and so the band wanted out.
Another label expressed
> > interest, but when the A&R man was asked to release the
band, he said he would need
> > money or points, or possibly both, before he would consider
it.
> >
> > The new label was afraid the price would be too dear, and
they said no thanks. On the
> > cusp of making their signature album, an excellent band,
humiliated, broke up from the
> > stress and the many months of inactivity.
> >
> > II. There's This Band
> >
> > There's this band. They're pretty ordinary, but they're also
pretty good, so they've
> > attracted some attention. They're signed to a moderate-sized
"independent" label
> > owned by a distribution company, and they have another two
albums owed to the
> > label.
> >
> > They're a little ambitious. They'd like to get signed by a
major label so they can have
> > some security-you know, get some good equipment, tour in a
proper tour
> > bus-nothing fancy, just a little reward for all the hard
work.
> >
> > To that end, they got a manager. He knows some of the label
guys, and he can shop
> > their next project to all the right people. He takes his
cut, sure, but it's only 15%, and
> > if he can get them signed then it's money well spent.
Anyway, it doesn't cost them
> > any thing if it doesn't work. 15% of nothing isn't much!
> >
> > One day an A&R scout calls them, says he's "been following
them for a while now," and
> > when their manager mentioned them to him, it just "clicked."
Would they like to meet
> > with him about the possibility of working out a deal with
his label? Wow. Big Break time.
> >
> > They meet the guy, and y'know what-he's not what they
expected from a label guy.
> > He's young and dresses pretty much like the band does. He
knows all their favorite
> > bands. He's like one of them. He tells them he wants to go
to bat for them, to try to
> > get them everything they want. He says anything is possible
with the right attitude.
> > They conclude the evening by taking home a copy of a deal
memo they wrote out and
> > signed on the spot.
> >
> > The A&R guy was full of great ideas, even talked about using
a name producer. Butch
> > Vig is out of the question-he wants 100 g's and three
points, but they can get Don
> > Fleming for $30,000 plus three points. Even that's a little
steep, so maybe they'll go
> > with that guy who used to be in David Letterman's band. He
only wants three points.
> > Or they can have just anybody record it [like Warton Tiers,
maybe-cost you 5 or 10
> > grand] and have Andy Wallace remix it for 4 grand a track
plus 2 points. It was a lot to
> > think about.
> >
> > Well, they like this guy and they trust him. Besides, they
already signed the deal
> > memo. He must have been serious about wanting them to sign.
They break the news
> > to their current label, and the label manager says he wants
them to succeed, so they
> > have his blessing. He will need to be compensated, of
course, for the remaining albums
> > left on their contract, but he'll work it out with the label
himself. Sub Pop made millions
> > from selling off Nirvana, and Twin Tone hasn't done bad
either: 50 grand for the Babes
> > and 60 grand for the Poster Children-without having to sell
a single additional record.
> > It'll be something modest. The new label doesn't mind, so
long as it's recoupable out of
> > royalties.
> >
> > Well, they get the final contract, and it's not quite what
they expected. They figure
> > it's better to be safe than sorry and they turn it over to a
lawyer-one who says he's
> > experienced in entertainment law-and he hammers out a few
bugs. They're still not
> > sure about it, but the lawyer says he's seen a lot of
contracts, and theirs is pretty
> > good. They'll be getting a great royalty: 13% [less a 10%
packaging deduction].
> > Wasn't it Buffalo Tom that were only getting 12% less 10?
Whatever.
> >
> > The old label only wants 50 grand, and no points. Hell, Sub
Pop got 3 points when they
> > let Nirvana go. They're signed for four years, with options
on each year, for a total of
> > over a million dollars! That's a lot of money in any man's
English. The first year's
> > advance alone is $250,000. Just think about it, a
quarter-million, just for being in a
> > rock band!
> >
> > Their manager thinks it's a great deal, especially the large
advance. Besides, he knows
> > a publishing company that will take the band on if they get
signed, and even give them
> > an advance of 20 grand, so they'll be making that money too.
The manager says
> > publishing is pretty mysterious, and nobody really knows
where all the money comes
> > from, but the lawyer can look that contract over too. Hell,
it's free money.
> >
> > Their booking agent is excited about the band signing to a
major. He says they can
> > maybe average $1,000 or $2,000 a night from now on. That's
enough to justify a five
> > week tour, and with tour support, they can use a proper
crew, buy some good
> > equipment and even get a tour bus! Buses are pretty
expensive, but if you figure in
> > the price of a hotel room for everybody in the band and
crew, they're actually about
> > the same cost. Some bands (like Therapy? and Sloan and
Stereolab) use buses on
> > their tours even when they're getting paid only a couple
hundred bucks a night, and
> > this tour should earn at least a grand or two every night.
It'll be worth it. The band will
> > be more comfortable and will play better.
> >
> > The agent says a band on a major label can get a
merchandising company to pay them
> > an advance on t-shirt sales! Ridiculous! There's a gold mine
here! The lawyer should
> > look over the merchandising contract, just to be safe.
> >
> > They get drunk at the signing party. Polaroids are taken and
everybody looks thrilled.
> > The label picked them up in a limo.
> >
> > They decided to go with the producer who used to be in
Letterman's band. He had
> > these technicians come in and tune the drums for them and
tweak their amps and
> > guitars. He had a guy bring in a slew of expensive old
vintage microphones. Boy, were
> > they "warm." He even had a guy come in and check the phase
of all the equipment in
> > the control room! Boy, was he professional. He used a bunch
of equipment on them
> > and by the end of it, they all agreed that it sounded very
"punchy," yet "warm."
> >
> > All that hard work paid off. With the help of a video, the
album went like hotcakes!
> > They sold a quarter million copies!
> >
> > Here is the math that will explain just how fucked they are:
> >
> > These figures are representative of amounts that appear in
record contracts daily.
> > There's no need to skew the figures to make the scenario
look bad, since real-life
> > examples more than abound. Income is underlined, expenses
are not.
> >
> > Advance: $250,000
> > Manager's cut: $37,500
> > Legal fees: $10,000
> >
> > Recording Budget: $150,000
> > Producer's advance: $50,000
> > Studio fee: $52,500
> > Drum, Amp, Mic and Phase "Doctors":
> > $3,000
> > Recording tape: $8,000
> > Equipment rental: $5,000
> > Cartage and Transportation: $5,000
> > Lodgings while in studio: $10,000
> > Catering: $3,000
> > Mastering: $10,000
> > Tape copies, reference CDs, shipping
> > tapes, misc expenses: $2,000
> >
> > Video budget: $30,000
> > Cameras: $8,000
> > Crew: $5,000
> > Processing and transfers: $3,000
> > Offline: $2,000
> > Online editing: $3,000
> > Catering: $1,000
> > Stage and construction: $3,000
> > Copies, couriers, transportation: $2,000
> > Director's fee: $3,000
> >
> > Album Artwork: $5,000
> > Promotional photo shoot and duplication:
> > $2,000
> >
> > Band fund: $15,000
> > New fancy professional drum kit: $5,000
> > New fancy professional guitars (2): $3,000
> > New fancy professional guitar amp rigs
> > (2): $4,000
> > New fancy potato-shaped bass guitar:
> > $1,000
> > New fancy rack of lights bass amp: $1,000
> > Rehearsal space rental: $500
> >
> > Big blowout party for their friends: $500
> >
> > Tour expense (5 weeks): $50,875
> > Bus: $25,000
> > Crew (3): $7,500
> > Food and per diems: $7,875
> > Fuel: $3,000
> > Consumable supplies:
$3,500
> > Wardrobe: $1,000
> > Promotion: $3,000
> >
> > Tour gross income:
$50,000
> > Agent s cut: $7,500
> > Manager's cut: $7,500
> >
> > Merchandising advance:
$20,000
> > Manager's cut: $3,000
> > Lawyer's fee: $1,000
> >
> > Publishing advance:
$20,000
> > Manager's cut: $3,000
> > Lawyer's fee: $1,000
> >
> > Record sales: 250,000
@ $12 =
> > $3,000,000 gross
retail revenue Royalty
> > (13% of 90% of
retail): $351,000
> > Less advance: $250,000
> > Producer's points: (3%
less $50,000
> > advance) $40,000
> > Promotional budget:
$25,000
> > Recoupable buyout from
previous label:
> > $50,000
> > Net royalty:
(-$14,000)
> >
> > Record company income:
> > Record wholesale price
$6.50 x 250,000
> > = $1,625,000 gross
income
> > Artist Royalties:
$351,000
> > Deficit from
royalties: $14,000
> > Manufacturing,
packaging and distribution
> > @ $2.20 per record:
$550,000
> > Gross profit: $710,000
> >
> > The Balance Sheet:
This is how much
> > each player got paid
at the end of the
> > game.
> >
> > Record company:
$710,000
> > Producer: $90,000
> > Manager: $51,000
> > Studio: $52,500
> > Previous label:
$50,000
> > Agent: $7,500
> > Lawyer: $12,000
> > Band member net income
each:
> > $4,031.25
> >
> >
> > The band is now 1/4 of the way through its contract, has
made the music industry
> > more than 3 millon dollars richer, but is in the hole
$14,000 on royalties. The band
> > members have each earned about 1/3 as much as they would
working at a 7-11, but
> > they got to ride in a tour bus for a month.
> >
> > The next album will be about the same, except that the
record company will insist they
> > spend more time and money on it. Since the previous one
never "recouped," the band
> > will have no leverage, and will oblige.
> >
> > The next tour will be about the same, except the
merchandising advance will have
> > already been paid, and the band, strangely enough, won't
have earned any royalties
> > from their t-shirts yet. Maybe the t-shirt guys have figured
out how to count money
> > like record company guys.
> >
> > Some of your friends are probably already this fucked.
> >
>
>
>
