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  1. #11
    DWG Warrior
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    I can speak to this whole situation but will have to summon the strength to do so. I'll try over the next few days.

  2. #12
    Quote Originally Posted by J$MONEY View Post
    I can speak to this whole situation but will have to summon the strength to do so. I'll try over the next few days.

  3. #13
    DWG Warrior
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    Quote Originally Posted by raredave View Post
    Right, here goes. Short answer = yes, they will get paid for the VMP reissue.

    Longer explanation - Typically, they would stand to make what they would have made off sales of original physical copies at the time of release. This can change if there were any contract amendments over time but those types of amendments aren't common. However, since De La mentioned a "debt" which could be an unrecouped value that potentially could still be being applied against current and future earnings. I can see their original contract but obviously can't disclose any specific terms. I don't think VMP ever presses more than 10k copies so the royalty that would go to De La and then be divided 3 ways wouldn't be a significant payday for the members.

    My previous understanding about the digital availability was always due to the samples issue; particularly for 3 Feet High but as I read the contract more closely I see that was likely not the case.

    Because digital platforms didn't exist when the contract was signed labels usually apply the same percentages as would apply to physical. The net result is often splits as unfavourable as the 90/10 De La is claiming. Digital download royalties are based off of the cost to the platform (essentially wholesale) and streaming is based of of ad revenue generation.

    It's messy and often exhausting and yet I've made a career out of navigating the whole thing.
    Last edited by J$MONEY; 06-03-19 at 03:46 PM.

  4. #14
    DWG Warrior
    Join Date
    Nov 2008
    Posts
    255
    Yes spot on but during my time over 22 years doing finance and royalties is the last few years artists have approached us to amend the contract for streaming percentage which tends to be 50/50. The Downloads remain at the physical rate. Streaming is based of subs the user pays usually 9.99 per month and is pro rated over number of tracks played. The labels usually gets 60% of the revenue for streaming will the platform keeps 40%



    Quote Originally Posted by J$MONEY View Post
    Right, here goes. Short answer = yes, they will get paid for the VMP reissue.

    Longer explanation - Typically, they would stand to make what they would have made off sales of original physical copies at the time of release. This can change if there were any contract amendments over time but those types of amendments aren't common. However, since De La mentioned a "debt" which could be an unrecouped value that potentially could still be being applied against current and future earnings. I can see their original contract but obviously can't disclose any specific terms. I don't think VMP ever presses more than 10k copies so the royalty that would go to De La and then be divided 3 ways wouldn't be a significant payday for the members.

    My previous understanding about the digital availability was always due to the samples issue; particularly for 3 Feet High but as I read the contract more closely I see that was likely not the case.

    Because digital platforms didn't exist when the contract was signed labels usually apply the same percentages as would apply to physical. The net result is often splits as unfavourable as the 90/10 De La is claiming. Digital download royalties are based off of the cost to the platform (essentially wholesale) and streaming is based of of ad revenue generation.

    It's messy and often exhausting and yet I've made a career out of navigating the whole thing.

 

 

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