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The music business operates by finding and exploiting talent. This happens in many different ways. Money is made from selling records, videos, merchandising and concert tickets. Money is also collected and paid to the writers each time their music is played on the radio or television or performed live in public.

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15y ago
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10y ago

Record companies provide all of the up front costs to recording artists they wish to produce records for, such as studio time, mixing, and other production work. They also promote and manufacture the actual records and CD's. They are very selective about which recording artists they choose to sponsor, since they want to have immensely popular artists in order to make large profits.

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Q: What does a record company do?
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