How To Deal With Suspect Record Company/Recording Studio Relations

Q – Steve from London is paying for the studio from an advance by his record company, but he suspects that the record company is getting a kick-back from the studio they are using – and he thinks he should get the discount.

A – Firstly I would ask you why you think they are getting a kick-back? It’s unlikely that a reputable record company would get a kick-back as such – it’s more likely that they may get a more favourable rate for hiring the studio. Who chose the studio? If it was you then any discount should certainly come your way as you are footing the bill. If the record company chose it then I would have thought that if they are worthy of the name, they would have negotiated a discounted rate and passed it on to you.
This should be quite simple for them as they should have considerable bargaining power already if they use this studio often, and even if they don’t, most studios would offer a favourable rate if they want to cultivate an ongoing relationship with the record company.
If what you say is true, though I doubt it’s a kick-back, then you certainly have issues that need to be taken up with your record company immediately. Even if you are wrong, something has happened to cause doubt in your mind and sour your relationship with your record company... and you haven’t even finished your first album yet! This is not good, so I’d suggest a pow-wow with your record company to clear the air.b

Answers supplied by O.J. Kilkenny and Co. Chartered Accountants, specialists in the entertainment industry. Contact: [email protected] or call Alan Duffy (01) 661 1588..