Record labels make their money off of selling records, but there’s all kind of royalties that the record company collects when a record is played, and that’s how they make their money. When every time a record is played on the radio or sold in a record shop, or sold online now they get a percentage of it, the artist gets a percentage of it, the writer gets a percentage of it.

They make money the way they have for years . . . off of the exploitation of the recordings themselves, and there’s a million ways that is exploited. So, now they make money off of every aspect of an artist’s career. There’s a deal type that’s been around for a while called the 360 deal, which means that they participate in all aspects of an artist’s career, like touring, merchandising, etc.

“So, you, as a label, are now making money off of pretty much every action an artist takes that involves getting income. A 360 deal is sort of the standard operating understanding in most labels, when you’re talking about a major label. You are going over to Interscope, and you’re signing a deal, and you’re like, “I’m going to be the next Justin Bieber.” You’re going to be signing a deal like that, where they participate in everything, including every T-shirt you sell. They’re going to have their own piece of that. It’s a giant markup on merchandise. A lot of people have made more off of the things surrounding the music than the music itself.

Read more:
HOW RECORD LABELS MAKE MONEY FROM MUSIC http://www.sanwomi.com/2018/07/how-record-labels-make-money-from-music.html

Lalasticlala
Mynd44
Ishilove
Marpol
Semid4lyfe
Obinoscopy
Seun

the above is what happens in the REAL world.... what i really would like to know is how exactly Nigerian record labels make money in Nigeria, if not by selling their masters to Alaba marketers and taking a cut on performance/endorsement fee