No, in Ghana specifically, Uniliver are the sole presence, they have a huge influence on the government. My point was, that regardless of the fact these companies are there to make a profit, they are also there to develop the economy (directly or indirectly), the companies presence is more a pre-empt that the economy will develop. Unilever arent making a great deal of profit, there there to establish themselves so when there is a huge market, they can monopolise in. The point being, the companies presence will bring stability and help with economic growth, the fact there Western companies means they can bring the Western mindset to the place. Including the idea of copyright.
The presence of these companies is so huge, that governments have to consider and consult them when setting their budgets. This western influence, in the future, will create a western state of mind, including the IP line of thought.
In relation to the 5% success covering the 95% loss, i didn't know. But wouldn't this be true of money companies who invest in R&D? It could be said that trying to find new artists is like developing new products, most aren't going to make it, and this loss is covered by those who do. I'm just guessing here
Sorry for going offtopic from the offtopic, lol
It's not like R&D because your successful artist (of the 5% that bring profit) maybe half of those will have a career longer than three years. That's 2.5% of all artists having a career of more than three years that is profitable to the RECORD COMPANY that initially signs him/her (not profitable to the artist.)
In R&D, a company like Xerox or Lockheed-Martin can develop optical devices/software/missile systems which can bring in a profit for 20-30 years. Then they just build on a patent.
If I find the next 50 Cent, I will be lucky to keep him signed to the label I work for etc., for more than 5 years or even less (if he fulfills his album obligations). Compare that to a weapons system that is the platform for a new missile system. The R&D for the weapons system will create far more value in share price AND pure profit for the company than an artist that will be "hot" for a couple years.
On top of that, the companies that develop R&D can also sell their legacy generation products (like weapons) to other countries - thereby compounding profit. A rapper that isn't "hot" anymore will end up like a Vanilla Ice or Q-Tip. At least before the digital revolution, these "has been" artists would have been relegated to a loss-leader "bargain bin." Not anymore. Technically Flavor-Flav should be sitting pretty because of Public Enemy's huge impact on the game - but he isn't - and is forced to a stature far lower than he deserves - he has that stupid show and is basically a VH1 joke. He created profit for his record company and then moved on - due to stylistic influences, crack habits, whatever.
As far as Unilever being the sole force in Ghana - it still isn't profitable unless you partner with Unilever like Jermaine Dupri did with TAG fragrances to make a "label." This would make Unilever products "cool" for the Ghanian people. But - if the product is already a necessity - like soap and toothpaste - and the per capita income of people in Ghana is shit - then what's the need for creating a "wedge" marketing campaign that "music label coolness" would give your product - since you don't have competition vying for basic products or another company infringing on your turf (according to you - I guess Colgate-Palmolive isn't a big thing there).
So, R&D in a corporate sense - in creating new technologies - give you a good "bump" in share price that can compound itself (citing my weapons system example.) If I sign a 50 Cent, I am constantly looking for the NEXT act, because 50 will only have impact on share price when the quarterly earnings report is filed - then his future may or may not be up in the air. On top of that, if the record company is owned by a larger company, like GE, Disney, etc- then your star artist's impact on share price is minimal. In fact it's pure shit. Not even the great profit from a 50 Cent's "Get Rich or Die Tryin' " can compete with a multi-billion dollar government contract that a parent company like GE or whatever will get for a particular service or product. In fact, music is never the biggest moneymaker for the parent company. This is the same with movies - although movies bring in more money on average.
That's why music agents always wish they were film agents - because film agents have survived (so far) the digital revolution - and bring in BIG money. A music agent is happy to get his act booked for $100,000 for a corporate show, or 40K for a concert. Compare that to movies, where the agent gets 10 percent of a higher salary for the movie star. And then you can better "package" movie stars with B-actors to increase your bottom line. So you can "package" a group of movie actors from your agency roster to a total worth of about $10-20 million (lead actor, supporting actor, other roles, director). Agency takes its cut of the 10-20million and then you get your 1 million or 1/2 million depending on the deal. In music, agents have to package shows - but the leverage is not really there anymore. You're lucky to package shows just like the movie agents. A good music agent is lucky to get 10-20 million in bookings for a year. They're lucky if they bring in 1-5 mil a year, depending on the territory they're booking (Western N. America, Europe, the East Coast, etc.) In fact, that's very lucky.
And for record companies... well, we're seeing what's happening there. You have A&R reps now trying to be artists if they're still around 30 years old - cuz they still look kinda young and have the connections. If they put in a couple years and save their money, they might make something out of it. Probably one of their agent friends "mercy signs" them to their agency and then pairs them with a profitable touring act on the roster so the ex-A&R's band/act gets a paltry $5,000-$10,000 per show. If A&R's are trying to get into bands and become acts, then what does that tell you about the industry?
Hope that opens your eyes a bit.
