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Major record labels change royalty structures in response to sector pressures

News | 11/28/2002 5:00 am EST

Moves by two recording industry giants to overhaul their royalty structures will likely be followed by the three remaining labels, experts suggest, as the sector struggles to make its offerings more attractive to recording artists and the public alike. In recent weeks, both Universal and BMG have announced the elimination of certain charges withheld from artists and higher royalty rates for downloaded music in an apparent effort to reduce bureaucratic overhead and become perceived as more artist friendly.

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