Comments on: Record label ‘restrictive pricing’ http://www.p2pnet.net/story/8677 p2pnet.net - reader powered Sat, 10 Jan 2009 02:48:19 +0000 http://wordpress.org/?v=2.2.1 By: Reader's Write http://www.p2pnet.net/story/8677#comment-39417 Reader's Write Fri, 28 Apr 2006 21:08:24 +0000 http://www.p2pnet.net/story/8677#comment-39417 There is a good reason, other than to prevent competition, why imposrts are bad for record companies and their cousins (who are frequently another division, the publishing division) of the record company. It is royalty cutting. Lets say an American recording is manufactured in Australia. The record company then pays songwriter royalties to an Australian publisher. That publisher cuts a share of the royalties (usulally 50 percent) before sending the royalties to the American publisher, who then cuts another 50 percent before paying the songwriter. Put differently, two cuts of 50 percent (67 percent when combines) are better than one cut of 50 percent. Also the accounting process in Australia for the record company and the publisher are farther away from a possible audit by an American songwriter. As a result the audit of foreign record companies and publisher are de facto impossible to do. When audits are impossible corruption seeps in and no one can be caught at it. That it, more royalty cutting, fewer audits and more corruption. Rafael Venegas http://www.gvenegas.com There is a good reason, other than to prevent competition, why imposrts are bad for record companies and their cousins (who are frequently another division, the publishing division) of the record company.

It is royalty cutting.

Lets say an American recording is manufactured in Australia. The record company then pays songwriter royalties to an Australian publisher. That publisher cuts a share of the royalties (usulally 50 percent) before sending the royalties to the American publisher, who then cuts another 50 percent before paying the songwriter.

Put differently, two cuts of 50 percent (67 percent when combines) are better than one cut of 50 percent. Also the accounting process in Australia for the record company and the publisher are farther away from a possible audit by an American songwriter. As a result the audit of foreign record companies and publisher are de facto impossible to do. When audits are impossible corruption seeps in and no one can be caught at it.

That it, more royalty cutting, fewer audits and more corruption.

Rafael Venegas
http://www.gvenegas.com

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