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who takes the haircut on Amazon MP3 discounts?
:: Posted by chuckbenz on August 08, 2012
Even though DGM does not have an agreement with Amazon’s MP3 shop, I’ll pose this question here because this crowd is interested in artist compensation issues.
When Amazon discounts MP3 downloads, who is losing out? Is it similar to the old "cutout" albums that were written off as unsold then dumped to discount channels without royalty? Or is the discount shared equally among all interested parties (seems like the least likely case)? I imagine that contracts allow for promotional offerings, and the "standard" contract probably gives labels a lot of leeway to "cut out" (sorry) the artist, but maybe the composer is not affected as severely?
c
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