Music Biz Economics – How does the money flow when music bands tour? Do they “rent” out the theatre/stadium, or does the facility “hire” the band? Who takes the hit if tickets don’t sell?
In: 2
From what I remember, the label’s promoters schedule and front the concerts. The band gets their money from ticket and merch sales. They get a percentage with a guaranteed minimum. promoters and the venue get their piece as well. Promoters can take a bath on a cancelled concert, but they have insurance to cover that.
The worst part (if you ever watched VH1’s Behind the Music) is the record label gets the profits from album sales and radio play and the band gets their money from the concerts. That’s why so many bands tour themselves to death while enjoying great radio play. And the songs’ royalties go to the songwriter for each air play. That’s why a lot of songs now list every band member as a contributing writer.
Latest Answers