Did you know that an artist on a 20-80 split with their label, with a $400k advance for an album that cost $200k to record and $400k to market, will need 1bn streams before the artist starts to recoup?
Well, that’s the figure produced by a new number-crunching ‘record deal simulator‘ launched by startup CreateSafe, which makes a CRM tool for artists called CreateOS.
The deal simulator is designed for artists, managers and labels to play with the figures around different deals, to understand who makes what, and forecast profits.
Given the recent debates around streaming, artist royalties and contracts, the site is getting quite a bit of attention: we’ll be interested to see what labels (and lawyers) close to the nitty-gritty of dealmaking think of its calculations.
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