In the past, the music business was controlled by the major record labels. The record labels controlled everything in an artists career from start to finish. The record label would control and artist image, airplay, access to audits, likeness, royalty rate, success and everything in between while under the record label contract. When the artist career was over, the artist often didnt have anything to show for their hard work and creativity.
Back in the day, the record label would finance artists project up front in the form of an advance. The advance usually amounted to a loan which the artist had to repay. The record label would finance the recording, distribution and promotion of the artist project and then recoup the money after the project started selling. Although it seems fair on the surface, the record label would charge the artist for much more than what the record label provided. The record label would not only bill the artist for the things mentioned above, but they would deduct artist royalties for damaged goods, record club discounts and a wealth of other expenses. In addition the record label would take these deductions from the artists gross...
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