04/06/2025
Most traditional record deals, especially for new or independent artists, are structured in ways that heavily favor the label and can be deeply exploitative. While not every deal is predatory, many contain elements that leave the artist with little control, mounting debt, and minimal profit. Here's how:
🔹 1. Advance = Debt (Not a Gift)
What it seems like: The label gives you a lump sum to record, promote, or survive.
Reality: It’s a loan, not free money. Every penny must be recouped by the label before you see any royalties. Even after recoupment, contracts may still give the label a majority cut of profits.
🔹 2. Unfavorable Royalty Rates
Artists typically earn 10–20% of revenue from music sales or streams after recoupment. Labels take 80–90%, yet it's the artist that generates the income.
Streaming royalties are microscopic & millions of plays often yield just hundreds to a few thousand pounds for the artist.
🔹 3. "360 Deals" Grab Everything
Labels take a cut of all revenue streams, including: Merch, Touring, Sponsorships and Licensing (TV/film/games). These deals were created to "compensate" for shrinking record sales, but they make labels money on things they don’t build.
🔹 4. Creative Control is Lost
Labels often control of: What songs get released,The final sound of your album
Your image, branding, and public persona
You're essentially becoming a product, and they have the final say in how it's packaged and sold.
🔹 5. Trapped by Contracts
Artists are usually signed for multiple albums, but the label chooses whether or not to green-light each one.
This means an artist can be shelved (prevented from releasing music elsewhere) while still being legally bound to the label. Legal battles to escape these contracts can drag on for years.
🔹 6. Recoupable Expenses Inflate Debt.
Labels charge artists for: Recording costs, Music videos, Tour support, Marketing and even meals and travel. These expenses are taken out of the artist’s share, not the label’s, but the label still owns the master recordings.
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