Reserves are a certain amount of records or royalties which are withheld “off the top” from the artist by the record label to guard against the label paying royalties on physical records that are subsequently returned by retailers.
The New Formula for Success in the Music Business
The old method of promoting a new act in the music business was for a record company to invest at least $500,000 in studio time with a good producer, the cost of a good video, the advertising budget, and the cost of the first promotional road tour.
