Here's a decent article on it.
http://www.techdirt.com/articles/201...82610186.shtml
I guess the producers come out of the artist cut too. And I know BMR has an even more aggressive contract than this. They might have a 360 deal with Taylor which includes portions of all her endorsements too.
Taylor makes her money on touring and her endorsement deals. I'm willing to bet she won't see any royalties from Red for a very very VERY long time. All of the $$$ is going to bmr. If she sells a mil the first week at $15 an album that's 15 million she probably gets 10% of that so 1.5 million but she doesn't see it because she owes BMR at least 15 mil just to cover the promo. That doesn't cover her advance, the cost to film the music videos, producers, session musicians, the cost to MAKE the album etc. All of that comes out of Taylor's royalties. And she can't just cut them a check because she has bank already it comes out of album sales.
However BMR gets it's 65% right away. So out of that $15 million they get $ 9.75 million outright and TAYLOR STILL OWES THEM for all the money they fronted.
She's pretty set for life so it probably doesn't matter to her that she won't see a dime off her albums for a very long time. But she needs to sell albums to make the label money and that's why she has to be as commercial as possible.
I don't know exactly what her contract is though but she's probably under the same one she signed when she was 15 so it's probably for 5 or so albums and probably 10% royalties. I know Scott said it was very aggressive on the back end and that they wrote her "a lot of big checks" in the beginning. Hopefully her contract isn't for many more albums.
I like this its very shady 
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And please say no to the movie world. 
