Revenue by Threat: Exposing Shady Tactics In The Music Industry

Audio & Music | Business

​First things first, let's define what we mean by revenue by threat. This is when lawyers representing major record labels approach individuals who have illegally downloaded music and threaten legal action unless they pay up. It's a shady practice used for years to scare people into paying for music they may have downloaded illegally.

​But why do record labels resort to such tactics? It all comes down to money. With the decline of CD sales and the rise of streaming services, record labels are struggling to make the same profits they once did. So they're turning to "revenue by threat" to compensate for lost revenue.

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Here's the thing – revenue by threat isn't the only way record labels are trying to make money. They're also using tactics like multiple rights deals and 360 deals to take a cut of an artist's earnings from touring, merchandise, and even appearances in movies or commercials. It's a way for record labels to make money from an artist's success, even if they aren't selling as many records as they used to.

So what can you do to protect yourself from revenue by threat and other shady practices in the music industry? First and foremost, make sure you're not illegally downloading music like some of us were in the early 2000s. Instead, use legal streaming services like Spotify or Apple Music to listen to your favorite songs.​

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Secondly, support independent artists and labels. They don't have the same resources as major record labels. They're often more innovative and creative in making music. By supporting independent artists, you're helping to create a diverse and sustainable music industry.

Finally, educate yourself about the music industry and the practices used by major record labels. The more you know, the better equipped you'll be to make informed decisions about how you consume and support music.

In conclusion, revenue by threat is just one of the shady practices major record labels use to compensate for lost revenue. Staying informed and supporting independent artists can help create a more ethical and sustainable music industry.​

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Aaron Buyea
Multi-certified Audio Engineer Aaron Buyea leads this operation with nearly a decade and a half of entertainment industry experience. Refined Melody's founder brings insights into understanding the inner workings of the entertainment industry, the ability to identify the issues the industry is facing today, and the ability to build solutions that transcend.​