gets released. The
record is a big hit and sells a million copies. [. . . ] So, this band releases two
singles and makes two videos. The two videos cost a million dollars to make
and 50 percent of the video production costs are recouped out of the band’s
royalities. The band gets $200,000 in tour support, which is 100 percent recoupable.
The record company spends $300.000 on independent radio promotion. [. . . ]
All of those independent promotion costs are charged to the band. Since the
original million-dollar advance is also recoupable, the band owes $2 million to
the record company. If all of the million records are sold at full price with no
discounts or record clubs, the band earns $2 million in royalities, since their 20
percent royality works out to $2 a record. Two million dollars in royalities minus
$2 million in recoupable expenses equals . . . zero! How much does the record
company make? They grossed $11 million. It costs $500,000 to manufacture
the CD and they advanced the band $1 million. Plus there were $2 million in
video costs, $300,000 in radio promotion and $200,000 in tour support. The
company also paid $750,000 in music publishing royalities. They spent $2.2 Million
on marketing. [. . . ] Add it up and the record company has spent about $4.4
million. So their profit is $6.6 million; the band may as well be working at a
7-Eleven.«
C
Quelle: WIPO Copyright Treaty.
http://www.wipo.int/clea/docs/en/wo/wo033en.htm
[Stand: 24.03.2003]
»The Contracting Parties,
Desiring to develop and maintain the protection of the rights of authors
in their literary and artistic works in a manner as effective and uniform as
possible,
Recognizing the need to introduce new international rules and clarify the
interpretation of certain existing rules in order to provide adequate solutions
to the questions raised by new economic, social, cultural and technological
developments,
Recognizing the profound impact of the development and convergence of information
and communication technologies on the creation and use of literary and artistic
works,
Emphasizing the outstanding significance of copyright protection as an incentive for
literary and artistic creation,
Recognizing the need to maintain a balance between the rights of authors and the
larger public interest, particularly education, research and access to information, as
reflected in the Berne Convention,
Have agreed as follows: [. . . ]«