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Reznor Has A Business (Not A Job)
Written by: Chris Castiglione
Nine Inch Nails’s Ghosts I-IV earned 1.6 million in it’s first week.
Trent Reznor reported that the earnings came from 781,917 downloads - including both the free and paid transactions. If Trent had went the traditional route of distributing this album through a record label the album would have cost fans closer to $15 each, while he would have earned less than $1.00 on each unit sold. Here’s a comparison:
Through A Record Company
$15.00 album X 10% in artist royalties = $1.00 per unit sold
Self distribution
$5.00 album X 100% in artist royalties = $5.00 per unit sold
In this case, the self distribution model is better for the fans and the musicians - it only leaves out the labels. It’s uncertain whether Reznor is a music industry anarchist or just a clever entrepreneur, but what is clear is that he is no longer collecting paychecks. Reznor owns a business and not a job.
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wonder how much it cost him to record it? While his numbers are impressive, he’s already a well established artist. His earnings don’t really represent the new model of starting out as an unknown and then making at least a living off of giving away music. I’d like to read an article about that.