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Guides: Music Business

Last Updated: Thursday October 03 2002 13:21 GMT

What does a record company do?

EMI headquarters building
A record company pays for everything that needs to be done to make a CD.

There needs to be money for things like:

  • recording - studio and engineer time

  • mixing - to make sure all the sounds can be heard

  • mastering - sorting out the final copy

  • pressing - actually making the CDs
Record companies often give their artists an advance, too - money for the artist to live on while making the CD.

Getting the money back

Any profits that the CD makes helps to pay back this money.

If it is a flop, it is very unlikely that the artist will be expected to return the money.

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