Reportedly, Destiny’s Child was only paid $85k to record their debut album with Sony Music. The $85k were for all 4 members of the group to split and record their album. Also, the label refused to release the album in other countries unless the album spent 5 consecutive weeks on the Billboard Chart. In 1996, the ladies of Destiny’s Child were only minors at the time and had to have adults sign off on their recording contracts. In addition, a judge ruled that the contract was “reasonable and fair” for the girls.
The contracts stated that their first album had to be completed within 6 months of the girls signing their contracts. The second album had to be completed within 18 months after the contracts were signed. The tight contract with Sony allowed the label to renew or drop them from their contracts. Sony had to approve on all producers and materials the group used.
Contracts stated that sony will cover all recording costs and agreed to pay $85k advance on Destiny’s child’s first album. For the second album The Writing’s On The Wall the advanced was raised to a minimum of $350k with a maximum of $700k. The third album Survivor recording advances reached $375k and they would have reached $750k by the seventh album (if it to be released). Destiny’s Child would receive $450k to record the album and a maximum of $950k.
Also, the royalty for the first album was 28% and by the seventh album it would be at 34%. The royalty rates would increase if the group sold over 500k copies.Sony agreed to not do a greatest hits album without their consent as long as they albums were completed as per the contract.
Reports have surfaced that Beyonce has a different record contract with Sony Music and Columbia Records. According to sources, since Beyonce has a joint partnership with the labels and she is compensated a much higher percentages for her music sales. Today, Beyonce is worth $450 million.
Source:The Jasmine Brand