A lot of people don’t know this- music companies do not pay for albums to be recorded. The money given to the band or performer to record the album is a loan. If the album sells well, the loan is paid back through any profits the company might have made. Of course, this is before the band or performer will get paid anything.
If the album does not sell well, the music company is not the one on the hook for the likely very high bill from the recording studio, mastering studio, etc.
A lot of people don’t know this- music companies do not pay for albums to be recorded. The money given to the band or performer to record the album is a loan. If the album sells well, the loan is paid back through any profits the company might have made. Of course, this is before the band or performer will get paid anything.
If the album does not sell well, the music company is not the one on the hook for the likely very high bill from the recording studio, mastering studio, etc.