With artist royalties , whilst I do not have any direct experience per se , based on my knowledge , research and gut instinct and logic determines that the basis of their contract (as suggested) cannot be sustained . Here’s the logic :
Clearly the retail price of anything clearly has costs:
If say a CD costs £12 retail – call it for ease of maths £10 + VAT.
Retailer profit = 40% , say £4
Actual cost of reproduction of CD – probably 25p – 35p including artwork and printing – given bulk they produce
Publishing rights 6.25% = 62.5p
That leaves about £3 per disc to cover all costs. Artist royalties would be the same as publishing – ie 62.5p. They then have £2.38 per disc to play with
It would be unfair for them to re-coup marketing costs from the artist – as this is the record companies business.
I believe that the costs they will charge you for will be any advances they make and possibly some studio time but their own promotion budgets MUST include travel and direct expenses incurred .
