You know when you go to a decent size venue to see a band and it's £25 a ticket, how much money actually goes to the band?
What if a gig makes £200,000 but costs £220,000 to promote?
Fair enough at that level the band will most likely be on a guarantee of some sort, but it's frustrating when people presume that musicians are getting rich.
OK, here is another one.
An album sells £20,000 worth of records but costs £30,000 to promote.
Yup it's still a negative number. Robbie Williams was massively in debt to his label, even at that level. Many bands never recoup.
A lot of people want to attack record labels but if the revenue isn't there they can't pay the artist (it's too easy to attack labels as at the moment, lots of good people work for labels). Economics!
And this is even before you get into labels/film studios etc who have dodgy accounting practices...
Want an even more scary example of the entertainment industry promotion versus profit equation (plus dodgy accounting):
Hollywood Accounting: How A $19 Million Movie Makes $150 Million... And Still Isn't Profitable