Net Profit Deals: Not Your Traditional Record Deal

  • Published 2011

Abstract

To compute the net profits in a Net Profit Deal, the record company deducts off the top its actual outof-pocket costs for recording, manufacturing, promotion, marketing, etc. Some labels also deduct a so-called “Overhead Fee” of 10 to 15% of the gross record sales income. After the record company deducts all of these expenses and reimburses itself, the… (More)

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