To really help black artists, music companies could start by adjusting historical record deals
). Every additional percentage of royalty cash that major labels hand to heritage artists immediately reduces these valuations, because catalog income is a cast-iron indicator of perpetual future revenues in the streaming age.
Something worth knowing about record deals: When an artist agrees a royalty rate with a label, they often also agree an advance of money. This becomes a debt for the artist, paid back to the label in accordance with the act’s own royalty percentage. In other words, if we agree an 20-80 royalty split, I advance you $10,000, then your music generates $20,000 in gross receipts, you’ll still owe me $6,000 — because your artist’s share of that royalty income only amounts to $4,000.
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