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Cross collateralization is how labels keep you in debt. If the label pools ALL your albums together and Album 1 flops? They’ll use Album 2’s profits to cover those losses before you get paid. You could have a hit record and STILL owe money because you’re covering old debts. This keeps artists stuck never recouping, never owning masters, never seeing royalties. The label stays protected, you stay broke. Questions? Drop them below #musicbusiness101 #musicbusiness #musicbusinesstips
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