If a record label makes a video to exploit, what percentage of revenue should you seek?

If a record label makes a video to exploit, what percentage of revenue should you seek?

• A. 50% or more
• B. 10% or less
• C. 25%
• D. 100%

Answer: (A)

The situation tests how revenue from a video created by the label to exploit a master should be shared. When a label takes initiative to produce a video to monetize the recording, both parties contribute to the value: the artist contributes the performance and the rights in the master, while the label puts up funds for production, promotion, and distribution. Because of that shared value and risk, the fairest expectation is to split the revenue from that exploitation evenly—about half or more going to the artist. This parity recognizes the artist’s stake in the master and the label’s role in enabling the exploitation, while still allowing the label to recoup its investment and earn a return. The other options depict an uneven division that doesn’t align with the joint effort involved in video exploitation.

The situation tests how revenue from a video created by the label to exploit a master should be shared. When a label takes initiative to produce a video to monetize the recording, both parties contribute to the value: the artist contributes the performance and the rights in the master, while the label puts up funds for production, promotion, and distribution. Because of that shared value and risk, the fairest expectation is to split the revenue from that exploitation evenly—about half or more going to the artist. This parity recognizes the artist’s stake in the master and the label’s role in enabling the exploitation, while still allowing the label to recoup its investment and earn a return. The other options depict an uneven division that doesn’t align with the joint effort involved in video exploitation.