News that Hip-Hop surpassed pop music made headlines last year and the recognition is still deep in 2018. Record label advances, something that hadn’t been seen for years due to shrinking budgets, are back in full effect, especially for Hip-Hop artists.
Record label revenues have climbed over the last few years after declining for decades. This is mostly due to streaming, which is also a platform that’s totally dominated by Hip-Hop. And since budgets are back, label advances are starting to exceed $1 million again.
Tom Corson, the new co-chairman of Warner Bros. Records said “anything that shows promise is being snatched up. We’re definitely in the middle of a very competitive and expensive moment here with hip-hop acts.”
But don’t think of this as all sunshine and rainbows.
According to Bobby Owsinski’s blog:
Of course what many artists coming into a new deal don’t grasp is the fact that the money is an advance against royalties that has to be paid back. It’s supposed to pay for studio time, music videos and tour support, and not lavish lifestyles. The label is the bank that gives you the credit card, but you will get a bill that needs to be paid at some point.
But if you’re looking for a record deal, it’s a great time to be a rapper.