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The exact same software that would allow for accurate tracking of the 20% that make money would work for the 80% that don't. The fact that they can't properly

The exact same software that would allow for accurate tracking of the 20% that make money would work for the 80% that don't. The fact that they can't properly account for the 80% strongly implies that they can't properly account for the 20%.

pyre 17y ago
It's entirely possible that all of the numbers are being moved around by hand through various large Excel spreadsheets rather than in an actual accounting system. You might think this unlikely for a large corporation, but it happens. In this case, shuffling around the numbers for the 80% would be extra time and money. edit: Maybe I should mention that I'm not defending them, just pointing out that there could be a plausible explanation. In this case, the plausible explanation is that their accounting people are idiots (they probably think that their system is more reliable because an accountant is looking at all of the numbers instead of some automated process, not taking into account that MS Excel isn't exactly bullet-proof software).
- tezza 17y ago
  I'm not defending them either, just using my knowledge of the music rights industry (involved in legal side of Music Startup FYI) The rights of each track are tortuous and split. There are many different responsible bodies that need to be consulted as to who owes how much to whom. * Mechanical Rights * Production Rights (maybe split say 30% 30% 35% somehow) * Recording Rights These are all spread around different collecting bodies. There may be different societies for different artists, countries. It is a difficult, time-consuming and manual problem to allocate the monies.
- cabalamat 17y ago
  Assuming royalties are often incorrectly calculated, what's the likelihood that the innaccuracies are almost always in the favour of the record company? I suspect very likely indeed, and IMO it constitutes fraud. When record companies deprive artists of income through misaccounting, they should be charged with copyright infringement, and fined at the same high rate per copy that they have bribed legisltors to apply when others infringe copyright. And if that means they go bankrupt, it's no more than they deserve.
aresant 17y ago
I bet the hidden math is in the accounting fees, administrative fees of dealing with the few dollars here and there.

pyre 17y ago

It's entirely possible that all of the numbers are being moved around by hand through various large Excel spreadsheets rather than in an actual accounting system. You might think this unlikely for a large corporation, but it happens. In this case, shuffling around the numbers for the 80% would be extra time and money. edit: Maybe I should mention that I'm not defending them, just pointing out that there could be a plausible explanation. In this case, the plausible explanation is that their accounting people are idiots (they probably think that their system is more reliable because an accountant is looking at all of the numbers instead of some automated process, not taking into account that MS Excel isn't exactly bullet-proof software).

tezza 17y ago
I'm not defending them either, just using my knowledge of the music rights industry (involved in legal side of Music Startup FYI) The rights of each track are tortuous and split. There are many different responsible bodies that need to be consulted as to who owes how much to whom. * Mechanical Rights * Production Rights (maybe split say 30% 30% 35% somehow) * Recording Rights These are all spread around different collecting bodies. There may be different societies for different artists, countries. It is a difficult, time-consuming and manual problem to allocate the monies.
cabalamat 17y ago
Assuming royalties are often incorrectly calculated, what's the likelihood that the innaccuracies are almost always in the favour of the record company? I suspect very likely indeed, and IMO it constitutes fraud. When record companies deprive artists of income through misaccounting, they should be charged with copyright infringement, and fined at the same high rate per copy that they have bribed legisltors to apply when others infringe copyright. And if that means they go bankrupt, it's no more than they deserve.

aresant 17y ago

I bet the hidden math is in the accounting fees, administrative fees of dealing with the few dollars here and there.