First of all thanks for providing some real world scenarios. Speaking as a consumer and fan of EDM and as someone who eventually plans on starting a label someday I really am genuinely curious about this whole territory restriction dilemma...

quote:

Example #1: Artist Label A signs track worldwide Label B gets a territorial restricted license from Label A. Label A wants to make as much as possible, so label B would likely pay either a fixed fee or a percentage based on sales. In case of a fixed fee the artist has royalty rights over the sales from Label A as well as B or he gets a large percentage from the licensing, all parties happy. In case it's a percentage the following would apply: label A makes more on direct sales through their own label (and thus the artist does as well!). Restricting the territory on the license for label B would ensure a significant part of the sales will run through their own label thus increasing revenue.

The points I made in my previous posts don't apply to this scenerio because in "Example 1" a customer from any territory/country worldwide is actually allowed to pay $$$ to the artist and label (directly through Label A). You see my whole problem is with the labels who don't give any legal option to the consumers from certain countries to buy their music (which in my experience is 99% of labels with territory restrictions).

quote:

Example #2: Artist Label A signs track from artist with territory restriction on artists request. Label B signs track from artist with terriry restriction elsewhere. 2 labels involved. Double promotion and possible double advances for the artist, possibly extra (re)mixes and extra exposure. This happens. Unfortunately this setup is quite likely to have different release dates per label, which could be counter-productive on sales or the second release could keep interest up on the track boosting it's overall sales in both territories.

So in this scenerio would there still be some territories excluded or would all territories end up being covered by either one license or the other? I have absolutely no problem with the licensing being divided up for extra promotion and advances as long as all territories/countries are covered(or at least the major EDM buying countries). But, again my whole rant is against labels who don't give any legal option of buying their music if you happen to be in a certain territory/country...


...so I ask again to you Storyteller(sorry don't mean to pick on you) or any other label/industry person who might be reading this: how can it be more beneficial/profitable to NOT give consumers(who want to do the right thing by paying the label & artists) from certain countries any legal option to pay for the product?