| <<I heard that the AI winner received $1 million cash. Then I heard Ryan refer to the prize as a $1 million RECORDING CONTRACT. Which is it? Cash or a contract?>>
I asked a couple of people about this. They both said the same thing. When a record contract (or book contract, or movie contract, etc ...... basically, ANY contract which involves royalty payments) is made with a performing artist, the artist is paid an "advance" fee up front. It is really an "advance against future earnings".
So, RCA is supposed to advance Fantasia $1,000,000 (of which her agent -- 19 Entertainment -- will take a huge chunk). Then she will sell records for them and get no more payments until she has "earned" her million back for them. After that, she will earn money at whatever rate is set down in her contract.
That is what was told to me by two people I know who both have made CDs and have recording contracts. | |