Savannah used our news submit to tell us about an article in the Rolling Stone News , that says artists are worried about the net effect on their royalties if labels such as Universal lower prices to the recommended $ 12.98. Savanna has something for the labels to consider: "If the music companies are really concerned for their artists, and desire that the royalties be higher for their artists, I propose that the music companies reduce their take of the profits and give a higher percentage to the artists."
Universal, which accounts for thirty percent of the music market, including artists such as Eminem, U2 and Mariah Carey, shocked the industry in early September by proposing the price-cut plan, which lowers suggested retail prices on CDs to $ 12.98 beginning October 1st. According to Universal Music and Video Distribution president Jim Urie, studies indicate that $ 12.98 is the "sweet spot" for consumers. But to make up for the lost revenue, the company will have to sell significantly more CDs -- perhaps as much as fifteen percent more. "The plan definitely puts a squeeze on artists," says attorney Dave Stein, who represents Taking Back Sunday and the Starting Line. "But for new artists, it's less of an issue, because they make more money by touring than they do from album sales." |
Maybe, but it is irritating that the content creators are the ones feeling the "squeeze" they are the ones paying everyones salary up at Universal, so why not throw them a bone? I would feel a lot better buying an album if a (much) greater percentage went to the artsts. What about everyone else? Great story Savanna!
Source: rollingstone.com
