From the course: Music Law: Recording, Management, Rights, and Performance Contracts

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Marketing provisions

Marketing provisions

From the course: Music Law: Recording, Management, Rights, and Performance Contracts

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Marketing provisions

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- The main reason most artists sign with a label is for the Marketing muscle. Oddly, the label's marketing obligations are hard to locate in most recording agreements. Aside from an assurance that it will use reasonable efforts or some some similarly vague statement to manufacture, distribute and market the recordings, the label rarely provides any straight-forward marketing guarantees, financial or otherwise. At best, a label may supply advances for videos or tour support. For example, a record contract may include a guaranteed advance for one video for each album, the costs of which are often 50 percent recoupable. Although videos are enormously popular, YouTube is the number one source for music listening. Historically, they have not earned money, though this may be changing as video hosting sites monetize plays. Until there is substantial video revenue, an artist will have to pay back the advance from record sales. Even when a video is sold directly to consumers, the record…

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