Keep This in Mind While You Watch the Grammys….

Who Gets Hurt When You Pirate Music?

“There’s a case study in the NYDaily News — apparently a propos nothing but this Sunday’s Grammy Awards — that breaks down the cash flow of a hypothetical hit album by a hypothetical rock quartet. It illustrates all the people that get paid along the food chain, including some odd recoupable record company expenses, like a 25 percent ‘packaging deduction’ and a 15 percent ‘free goods charge,’ off the top, most of which the label keeps.

The bottom line is that a gold record (500,000 copies) selling at $16.98 will gross roughly $8.5 million, of which each member of the hypothetical quartet will pocket about $40,000. (The case study doesn’t take songwriting royalties into account.)

So for every $16.98 album you rip, you’re costing a performing artist about 34 cents, and the lawyers, producers and labels about $16.64.” [Over the Edge]

As Will says, “Kind of makes you want to just toss $0.34, or a share of Covad, in the guitar case of a starving artist, doesn’t it?”

[The Shifted Librarian]

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