Music Industry and Business Quiz

Grade 11 · Music · Quiz

Test your understanding of music rights, royalties, label contracts, and how artists earn money in the modern industry.

Questions

Who typically owns the master recording of a song when an artist signs a traditional record deal?
1. The artist who recorded it
2. The songwriter who wrote it
3. The record label
4. The streaming platform
Show answer
Answer: The record label
Under traditional record deals, the label finances recording and in exchange owns the master recordings. Artists earn royalties but don't own the recordings themselves.
Which of the following is a royalty paid to a songwriter every time their composition is streamed or downloaded?
1. Sync royalty
2. Mechanical royalty
3. Performance royalty
4. Master royalty
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Answer: Mechanical royalty
A mechanical royalty is paid to the songwriter/publisher for each reproduction of their composition — every stream, download, or physical pressing triggers a mechanical payment.
A '360 deal' means that a record label takes a percentage of:
1. Only digital streaming revenue
2. Only physical album sales
3. All of an artist's revenue streams including touring and merch
4. Only publishing royalties
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Answer: All of an artist's revenue streams including touring and merch
A 360 deal (also called a multiple rights deal) grants the label a cut of all revenue streams including touring, merchandise, endorsements, and publishing — not just recorded music sales.
Independent artists who distribute music without a major label deal retain ownership of their master recordings.
Show answer
Answer: True
Independent artists who record without a label deal and self-distribute through platforms like DistroKid or TuneCore retain full ownership of their master recordings.
An artist needs their music placed in a Netflix show. They must obtain licenses from which two rights holders?
1. Their manager and their booking agent
2. The master recording owner and the composition copyright holder
3. ASCAP and the streaming platform
4. The music video director and the label
Show answer
Answer: The master recording owner and the composition copyright holder
Sync placement requires two separate licenses: a sync license for the composition (from the publisher/songwriter) and a master use license for the actual recording (from the label or artist who owns the master).
Which platform allows artists to sell music and merchandise directly to fans while retaining a much higher percentage of revenue than streaming?
1. Spotify
2. Bandcamp
3. SoundCloud Go
4. Apple Music
Show answer
Answer: Bandcamp
Bandcamp is known for its artist-friendly model; artists keep roughly 82–92% of revenue from sales, compared to fractions of a cent per stream on platforms like Spotify.
Before an artist earns additional royalty income beyond their advance, they must first __________ the advance given by the label.
Show answer
Answer: recoup
Recoupment means the label recovers its advance by deducting earned royalties until the advance is paid back. Many artists never recoup, meaning they earn no additional royalties beyond the advance.
Which of the following BEST explains why Taylor Swift re-recorded her first six albums as 'Taylor's Version'?
1. She wanted to update the production with modern sound
2. Her original master recordings were sold to a company she could not purchase; re-recording creates new masters she owns
3. Her original label asked her to re-record them
4. Re-recording is required after 10 years by U.S. copyright law
Show answer
Answer: Her original master recordings were sold to a company she could not purchase; re-recording creates new masters she owns
Taylor Swift's original masters (albums 1–6) were sold to Ithaca Holdings/Scooter Braun without her consent. By re-recording them, she creates new master recordings she fully owns, incentivizing fans to stream 'Taylor's Version' instead.

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