John G. Deacon replied to Kevin Sutton:

>>An artist does not begin to see royalty money until the recording recoups
>>its production costs.
>
>This, too, is substantially untrue (although it does apply in the pop
>field; because of massive abuse of studio time pop groups found themselves
>landed with this obligation many years ago).  Very important classical
>stars receive an advance on royalties before even entering the studio.
>Others receive royalties depending on the negotiating skills of their
>lawyers/agents *but* never have to wait until the recording costs have
>been recovered!

I'd like to pitch in a couple of things to this discussion if I may.
I have been a working musician for more than 20 years but only recently
have begun to seriously learn anything about the recording industry, and
it is fascinating.  First of all, about Naxos, perhaps some listmembers
may remember when I first came on the list last year I waxed indignant on
a post or two about Naxos not paying royalties.  Harrumph, my knee jerked,
no royalties? For shame, how can they take advantage of musicians in this
way?? My feelings have changed drastically since then.  On the surface it
seems unfair, but the flat fee they pay, around $1500-$2000 per recording
plus expenses, is not bad.

About this fee verses royalties, well, yes and no.  In my research I've
learned that the industry norm for royalties, at least until you get to the
big stars, is about 12-15% of wholesale.  That amounts to about a buck a
disc.  Now, applied to Naxos, if we do a disc for them and it sells 12,000
copies, then we come up very short.  But on another, fullprice label 12,000
units would be ASTOUNDING success; I think it wouldn't be bad selling even
10% of that number, in which case the royalties would about equal the Naxos
flat fee.

Going further, Naxos is perhaps the hottest, most recognized label in the
industry now.  Naxos discs are in every store, in every backwater town in
the universe.  If we were fortunate enough to record for them it would open
up a world of concert opportunities all over the world, and overnight we
could jack up our concert fee by 50%.  So looking at it this way, from a
financial point of view, it is a pretty good deal.

>>...royalties to members of an orchestra, are quite small, and are years in
>>coming, if they ever get them at all.
>
>Orchestral players are nearly always payed a flat fee, per hour, based both
>on union rates and the number of minutes per hour of master tape allowed
>(usually 20 mins).  Royalties paid in the US, via the AF-of-M system, may
>be late in reaching musicians but that's got absolutely nothing to do with
>the record companies who have to pay this levy on sales,as far as I am
>aware, from Day 1!

Again, in this case the musicians do considerably better with a fee
than with royalties.  Look at the numbers.  100 players in an orchestra.
Let's say a CD sells 10,000 copies.  At a buck a disc royalty to the
orchestra that comes to about $100 per player, which ain't gonna buy no
Mercedes-Benz.  In the orchestra I played in here in Spain, the Orquestra
Simfonica de Barcelona i Nacional de Catalunya (what a ridiculous name for
an orchestra, but there you are) the musicians receive one check per year,
of an amount roughly equal to a month's salary, that covers up to 8
recordings.  Not great but not bad.

>>Mr. Heymann, instead, pays his artists a flat fee, up front, in
>>the form of a cheque.
>
>Correct - what is interesting here is that the amount paid, calculated
>against the sales of 10-15k, often constitutes a really quite generous
>"royalty" when calculated from that standpoint!  And, yes, it has helped
>many careers as well as alleviating starvation!

Again, not really, at our figure of a buck a disc.  The comparison that
must be made is with sales figures of other labels.  And some pay artists
no royalty at all!  The pianist in my trio did a CD for...oh, I shouldn't
say, I guess, though if you want contact me privatly because it's a hell of
a CD...anyway, NO royalty, NO support in the way of forwarded reviews, NO
sales figures, not a peep from them since the disc was made.  It is still
in their catalogue and presumably has sold a copy or two, but nothing.
They won't even allow tracks from the CD to be posted on mp3.com with a
link to the label's website.

In summary, it is difficult to take seriously the diatribe against Naxos
and other labels.  Perhaps the big monsters, yes, but look where they're
going now.  There has been much fine work, great music and wonderful
performances recorded in this century and artists and music-lovers have
much to be grateful for in this difficult business.

David Runnion
http://www.serafinotrio.com