June 9, 2013

The JOBS Act To Record Labels

The feeling of getting cash on hand for a song that you have produce is unlike any other feeling.  It’s not the same as flipping some type of product for a modest take – you are actually creating something from scratch that can be sold for money.  It’s a pretty good feeling that not every producer gets a chance to have.  At the upper levels of business, the way money is made off of music is difficult and complex.  It’s not the same as simply buying a product and then reselling it in nice packaging.  It goes beyond songs, and it has more to do with companies rather than people.

Music is a form of media, and like other forms of media it is controlled by some big businesses that don’t reveal themselves.  Somewhere up the chain, music and the industry that it creates is funded by the same guys who invest in wall street and investment banks; their bottom line is quite different than that of a record store.  They naturally expect to lose money as well as make money, but with enough money on the line they find ways to ensure that profits are still made, even at the expense of businesses.