Record Label Artist Contract

A record label artist contract may also be called a recording contract or a record deal. This type of agreement is made between a music artist or musical group and a record label. Artist contract terms in a recording contract specify what percentage of profits from album sales will be granted to both the artist and the record label. Advance payments are also common in recording contracts, though often these advance payments must be paid back to the record label. Recording artists have often criticized this policy, claiming that it is unfair, especially to new musicians. A performer who signs a record label artist contract may not see a profit for a long time, as royalties from sales will initially go back to the record company to pay back advance payments and other expenses. Copyright issues are also a much debated topic. Record labels usually seek to control and own the copyrights to the music they distribute, while artists feel that they should own the copyrights to their creative works.

Fast Facts

  • Madonna released her first recording with Sire Records in April 1982.
  • Madonna signed a $120 million contract with Live Nation in 2008.

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