Are music recording contracts equitable? An economic analysis of the practice of recoupment

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Papadopoulos, Theo (2004) Are music recording contracts equitable? An economic analysis of the practice of recoupment. Music & Entertainment Industry Educators Association Journal, 4 (1). pp. 83-104. ISSN 1559-7334


This paper investigates the economic principles that underpin the contractual and financial relationship established in a recording contract, and in particular, the risk and return that each party to the investment is exposed. This analysis provides a pictorial view of sales volumes at which a record company achieves breakeven point and artists become recouped. This exploration of the underlying economic relationships facilitates a more informed assessment of the equity of the practice of recoupment. A range of recoupment structures are investigated and income shares are compared beyond the breakeven and recoupment sales volumes for the record company and artist respectively. A consequential benefit is the insight provided into the cost structure and pricing strategies of record companies.

Item type Article
Official URL
Subjects Historical > RFCD Classification > 340000 Economics
Historical > Faculty/School/Research Centre/Department > School of Economics and Finance
Historical > FOR Classification > 1402 Applied Economics
Keywords music recording industry, recording contract, physical property characteristics, intellectual property characteristics, volume of sales, Recording Artist Coalition, RAC
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