“Contracts are a bitch, and we’ve signed some raw ones. And we need to start trying to make some money off of our catalog, which is 10 albums deep, plus all the side stuff. We haven’t made any money from record sales, album sales. It’s all gone to the major labels. A lot of people make money off of us; we just don’t make money the way the deals are structured. We just aren’t excited to get back into any kind of contract. So if we find a new home at a new label, wherever it is, it’s gotta be a special deal where you get something for your hard work.

Vocalist/Guitarist Pete Loeffler from Chevelle

Music sells because artists create. As much as the labels would like to believe it’s about them, it isn’t. They are faceless nobodies to the majority of music consumers.

But the A&R reps and CEO’s of these labels fly private, while the artists that make them millions tour via vans. Which in the last 12 months, hasn’t been much, as all touring has ceased.

So the artists do what they normally do when they have downtime. They create more art for release.

CHEVELLE just finished their recording contract with EPIC. A deal signed in 2001, when there was no streaming, no iPhones and no YouTube.

With each label release, the advance they got for the album was bigger than the last advance, which for the label, would have been small change.

“We’ve sold six million albums for Epic Records, and they’ve made 50 million dollars. It’s lopsided.”

Vocalist/Guitarist Pete Loeffler from Chevelle

Their first album, released in 1999, was produced by Steve Albini and released on an independent label. Albini was always warning bands about signing to major labels back in the very early 90’s.

It was their second album, “Wonder What’s Next” that was the catalyst to make me a fan and many others as well. It was released on Epic.

But I got it a few years after it came out.

The first time I heard their music was when I picked up the “Music As A Weapon II” CD, a live collection from the Disturbed run of shows in which the opening bands all got a song or two featured on the CD. And that was when I heard “The Red”. It was like Tool learned how to write concise groove rock songs and I was all in.

“The fact of the matter is when you sign a record deal with a major, they own it for, like, 20-something years. We said, ‘We’d re-sign with you if you just sent some of it through the pipeline to us.’ All the profits, they’re keeping everything. And if they just send a little bit through, maybe we can talk about this, continuing on.”

Vocalist/Guitarist Pete Loeffler from Chevelle

Once upon a time, a major label deal was an opportunity to participate in the music business. 99% of the bands made zero money off the deal.

With the turn of the century, every label claimed that piracy killed the recording business. But acts still moved units.

Chevelle are not the first nor will they be the last who had been ripped off on the pay as Bon Scott would put it. Thirty Seconds To Mars and EMI went to war over a similar unfair contract after “A Beautiful Lie” blew up everywhere.

Maybe we need to look at the labels in the same we see businesses. There are laws which prevent businesses from merging because of the large market monopoly they would hold. There is a great story over at WIRED.COM called “Big Music Needs to Be Broken Up to Save the Industry”.

The article talks about how bad government policy in the U.S over a long period of time left mergers unchecked and this led to the creation of three major labels financing 70% of the music consumed. In other words the release less than other labels but because of their market power dominance it’s consumed more.

And the new recent proposed laws to rein in Apple, Amazon, Google and Facebook will also affect Sony, Universal and Warner. Because as streaming gets bigger so do the labels.

The article mentions research conducted in 2019 on streaming payments and the three major labels get $1 million an hour from streaming payments combined.

Think about that $1 million per hour. And this was 2 years ago. It will be more right now as streaming grew exponentially last year.

Streams are cheap for the labels. They don’t have to ship streams or store streams and there’s no breakage of streams like physical. All of the cost of the infrastructure is on the streaming service.

Labels are making money. And the artists….