When an artist signs a deal with a label it means they are giving the label exclusive rights and access to the artist and their material. In exchange the artist is receiving the full force of the labels ability to produce, market and sell the artist and their content.
Payment to the artist is in the form of royalties. The label negotiates with distributors such as music stores, digital music services and streaming providers and a percentage of sales income is payed to the artist by the label. The percentage varies based on the contract the artist was able to negotiate with the label.
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