Shelving Artists
Why Labels Sign Artists They Never Plan to Release
When major labels sign an artist, they aren't always betting that their music will come out. The bet is likely to be based on keeping options closed. Casey Rae, a music industry executive, explained this logic once: if a specific sound is trending, a label might sign up every band that resembles it, just so they'll make sure a rival company doesn't
This is a reported pattern of "signing to shelve", where the win is found in the exclusive contract, rather than record shipping. Another problem is the modern 360 deal, which is the industry standard major label contract.
This deal doesn't just take a cut of your record sales, but also demands a percentage of touring, endorsements, merchandise, and sometimes publishing.
According to legal breakdowns of these contracts from Disc Makers and Cordero Law, the range depends on the revenue stream, but is often between 10% and 50%.
An artist who signs the contract gives the label a financial stake in almost everything they do, so there's no rush to release an album if the label doesn't see a clear payoff. The label can still profit, or at least stop a competitor, by consigning the artist to the bleachers.
Author: kalu15051 [UG Writer]