MERGED ----> U2 compensated for ABC/ESPN commercials

[BVS]

Merge number 3, 4?

 

[MrBrau1]

Re: U2/ESPN link possibly explained in further detail

Found this on atu2.com, as stated by Mat McGee:

"Word on the street is that ESPN paid less than $50k for the use of up to 11 songs. So McGuinness was right when he essentially called it "peanuts."

Word on the street is also that this payment is in the form of a donation to the ONE campaign, but ESPN will never admit to that because the corporate people (ABC) don't want to be seen as supporting a "political" issue."

Wow. That's cheap. $50,000 @ 30% tax rate leaves $35,000 to be split. Split by five an its $7,000 per band member. Split by 11 and it's $3,200 per tune. Cheap, cheap, cheap.

 

[U2girl]

Saw the Elevation ad: who is doing the voiceover for this one?

 

[vivalapopedge]

I love the "Sick Days" one--so true, my science teacher paid for a substitute out of his own pocket the other day so he could watch the World Cup in the faculty room

 

[david]

The 50k more than likely went straight to charity.

 

[JCOSTER]

That may be true. But Paul, Larry, Edge, Bono, & Adam got a check with at least 5 or 6 numbers on it for their voices and their song rights. Same thing in 2001 with the NFL.

What they did with that check is anyone's guess. Bank it? Pass it on to a charity? New furniture? New car?

I'd say it went to charity. They do not need the "peanuts" that they got paid for the commercials. Bono has said he has all the money he needs....

 

[Earnie Shavers]

Does their label get any money in the downloads/Ipods sold or do they only get the money when U2 sells "hard copy" - albums and singles?

Universal are hard copy sales only. CD albums, singles, DVD's, LP's, cassettes, any future formats. They get zero from iTunes sales, and iPods have nothing to do with the music at all, as they're simply merchandise (just as Universal get no cut from the sale of t-shirts at gigs).

Also, remember (and it's kinda tongue in cheek, but these things often work this way)...

ESPN = owned by Disney.
ABC = owned by Disney.
Disney = essentially owned by Apple now.
Apple/U2 = partners.

It's called brand synergy.

 

[doctorwho]

Universal are hard copy sales only. CD albums, singles, DVD's, LP's, cassettes, any future formats. They get zero from iTunes sales, and iPods have nothing to do with the music at all, as they're simply merchandise (just as Universal get no cut from the sale of t-shirts at gigs).

Also, remember (and it's kinda tongue in cheek, but these things often work this way)...

ESPN = owned by Disney.
ABC = owned by Disney.
Disney = essentially owned by Apple now.
Apple/U2 = partners.

It's called brand synergy.

Whoa there!

While most of what you wrote is correct, I guarantee you that Universal gets money from iTunes sales!

In fact, this is what's taken iTunes a while to get into various countries. Each country's equivalent of the U.S.'s RIAA has to approve of the songs. RIAA gets approval from the studios. So there are deals struck. In fact, studios wanted iTunes to charge more for the songs - but so far, iTunes has said no.

Why would you think the studios get no money from iTunes? They get money from them, just like they get money from radio stations! iTunes are selling songs. Radio stations play music to attract listeners. The more listeners, the better commercial air time they can sell.

So yes, Universal gets money from iTunes, which means, ultimately, that U2 gets money from iTunes.

 

[Earnie Shavers]

Whoa there!

While most of what you wrote is correct, I guarantee you that Universal gets money from iTunes sales!

In fact, this is what's taken iTunes a while to get into various countries. Each country's equivalent of the U.S.'s RIAA has to approve of the songs. RIAA gets approval from the studios. So there are deals struck. In fact, studios wanted iTunes to charge more for the songs - but so far, iTunes has said no.

Why would you think the studios get no money from iTunes? They get money from them, just like they get money from radio stations! iTunes are selling songs. Radio stations play music to attract listeners. The more listeners, the better commercial air time they can sell.

So yes, Universal gets money from iTunes, which means, ultimately, that U2 gets money from iTunes.

Yes, Universal gets money from iTunes sales, and what you are saying about iTunes delays into foreign markets coming from the record co's is correct (and it was mostly Sony that were the culprit). However, I assure you that U2 entirely control their own digital rights, not Universal, and Universal get not a cent from U2's iTunes sales. It is an incredibly rare deal, one that was only made possible because it is U2 (who have an excellent history of managing to get their record company to completely bend over for them - they also have one of the highest royalty rates in music) and because it was a deal made by a very very savvy McGuiness years before the idea that music would be distributed and bought online was even really being considered. It's not a deal they, or any other band, could do now.

So for 99.999% of artists, iTunes go to the record co's to get rights, sign deals, split $ etc. For U2, they go to U2. In digital terms, U2 are an independent.

 

[toscano]

Re: Re: U2/ESPN link possibly explained in further detail

Wow. That's cheap. $50,000 @ 30% tax rate leaves $35,000 to be split. Split by five an its $7,000 per band member. Split by 11 and it's $3,200 per tune. Cheap, cheap, cheap.

I love "word on the street", you can pretty much say anything you want

 

[david]

Do U2 have to pay taxes in Ireland?

 

[U2DMfan]

Do U2 have to pay taxes in Ireland?

The way I understand it, is that they don't pay taxes on publishing but do for everything else.