If you think about it, there’s not much news in a story about a big recording company cheating its performers. Still, the details of a lawsuit against Sony regarding royalties on downloaded music are rather interesting.
Although the “Big Four” record labels have been making huge profits on digital music sales, it seems very little of that is trickling down to the artists according to legal action filed by classic rock groups the Allman Brothers and Cheap Trick.
The papers claim that Sony gets 70 cents for each track sold through iTunes and other download sites with the bands getting about 4.5 cents of that. So, what does the difference pay for?
The company is still billing for manufacturing costs, packaging, warehousing, and shipping. For a product that’s distributed digitally from a server. The cost of which is covered by someone else.
For music that was recorded more than twenty years ago.
Keep all that in mind the next time the RIAA starts crying about how their poor clients are suffering.