Answer the following statement(s) true (T) or false (F)

1. As artists gain superstar status, royalty rates generally go down in percentage terms because the
absolute amount paid to the superstar rises substantially as unit sales increase.
2. Record labels kept many “house producers” on staff that were assigned to all their recording artists
until the 1960s when rock acts broke away by selecting outside independent producers in a bid for
greater control over selection of songs.
3. Royalties of featured artists are typically 2 to 5 times higher than the producer.
4. For those who want to start their own independent record labels, the big expenses are in actual
recording of albums, while promotion and marketing are not a big financial concern.
5. Recent years have been hard times for traditional recording studios because they are squeezed by
both spending cutbacks at economically battered record labels and also increased competition from
semi-pro/home recording equipment that delivers decent quality.

1. False
2. True
3. True
4. False
5. True