Everyone knows that 50/50 record deals are not anywhere near 50/50. The split is taken of the "Net" as defined by the contract. Every contract is different but rest assured there are plenty of costs that are used to calculate that net and I agree many of them should be there. Hard costs, especially, should all be included in there. They could be distrbution, promos, posters, publicists, radio promotion, advertising, etc. However, many labels include a fee called "admin", "overhead", "venture", etc. that is compensation for the label before the 50/50 split.
Hmmm.
The artist works too. They tour (without tour support) tirelessly playing before hundreds of thousands every year, they interact with the fans directly and through the web and Twitter, they sell the CDs EVERY night THEMSELVES, they write the songs, they record the songs, the sweat it out every day but they are not compensated before the net.
Is that equitable?
I agree the label should make money and hopefully a lot. 50/50 implies a joint venture between 2 business. Each one should be bringing an equitable amount and they should share equitably.
There is of course value to the label "fronting" a lot of the marketing money (which is most certainly a risk factor) and that is why that money is "first out" but what is that value. Imagine what would be the APR of a $75,000 loan that is paid off in 6 months? Maybe that is the answer?
Hmmm.
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