What does a record company do?
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.
