Selling Fame, and Overcharging for It

We tend to think of record companies selling music to listeners, and overcharging for it. They generally take all the money and give little to the artists until the records are successful.

But for decades the artist put up with this. Why are they essentially paying the companies to make us pay for their music? Shouldn't they be payed for their work, after all, the record companies keep the rights to the music, just like my boss keeps the rights to the software that I write; My boss, however, pays me when I do my work, not in some distant, unlikely future.

The reason is that the true business of music companies is to sell fame. Fame requires that people know who you are. Many people think they can sing, everyone wants to be famous. The labels can charge up front when they sell this shot at fame, and since they are the gatekeepers of fame, they have unbeatable negociating power. So musicians buy their chance at fame much like Vegas gamblers buy their very slim chance at a jackpot.


And the 'house' usually wins...