Middlemen

In many record label agreements, artists may only receive a fraction of the revenue generated from their music sales, streaming, and other income streams. The majority often goes to the record label, which covers production costs, marketing, and distribution.

The rise of digital streaming platforms has further complicated the revenue distribution landscape. Artists receive a fraction of a cent per stream, and after management fees and label deductions, the artist's share can be minimal. Predatory contracts often involve terms that disproportionately favor record labels or other entities over the artists.

These contracts may include clauses that limit an artist's ability to negotiate fair compensation, control over their creative works, and ownership of intellectual property.

Advances, often perceived as financial support to help artists cover initial expenses, recording costs, or living expenses, can function more like loans. In many cases, artists are required to repay these advances from their future earnings, which can create a cycle of debt and financial dependency. In some cases, artists, especially those at the beginning of their careers, may not have access to adequate legal representation.

This puts them at a disadvantage during contract negotiations, making them more susceptible to signing disadvantageous agreements.

Major record labels also often have significant influence over streaming platforms and their curated playlists. This dominance allows them to secure favorable placements for their signed artists, leading to increased visibility and streaming numbers. The visibility disparities between major label artists and independent creators extend beyond playlists to other promotional avenues, such as featured artist sections, homepage banners, and marketing campaigns. This lack of visibility can impede an independent artist's ability to build a fan base and monetize their work effectively.