In this clip from – David Purcell from NYU talks about the relationship between record companies and artists concerning record contracts. He discusses provisions of a record contract such as options, advances, made for hire, and royalty rates. Mr. Purcell explains that there can be up to six or seven options on a record contract and the royalty rate in the agreement will hopefully increase with the increase in sales. He talks about how artists don’t necessarily make money directly from the artist agreement but indirectly, such as through touring and publishing.