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Only record companies make money off records.
This statement is far too broad - while it is true that the overwhelming majority of recording artists get their income from sources other than royalties from record sales, it wouldn't be fair to diminish that as a source of revenue, even for those artists who aren't selling on a platinum/gold level.
A lot of this depends on what yr contract and label is like, but I know that a good number of musicians are living off of money coming from sales royalties, songwriting/publishing royalties, and record advances from their labels. It's not feasible for every artist/band to constantly be touring, and it's also important to note that most labels give their artists tour support money.
Touring costs a lot of money upfront for different kinds of artists, so while it might be relatively easy for a three-piece guitar band to hop in their van and travel around the US, it's not as easy for bands who are larger ensembles or have more exotic and complicated gear. Matters get worse if you happen to be black and a hip hop/r+b artist - venues consider you a security liability and will give you a hard time every step of the way. A label can help you out with all of these things - but only if yr making money, cos otherwise they won't invest in you and/or drop you. Sales revenue is very important, and the record industry does have a lot to fear if it continues to dry up.
The money generated from touring flows more directly into the pockets of musicians; sure, but again, you can't tour all of the time. There will be periods when you are not touring, there will be periods when you'd rather be working in the studio. Remember, not everyone is all about live performance - a lot of wonderful musicians would much rather always be in the studio, and playing live is just a matter of promotion. |
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