The passing of Whitney Houston this week to an apparent drug overdose is a shock and hardship for all who knew her and loved her. What most people don’t know is that the way the music business works, Whitney Houston;s estate will not make any money on the playing of the hit “I Will Always Love You”, which is basically playing non stop on the radio since the singer’s death was announced.
The music industry is not set up to reward the singers of songs. Singers like Whitney Houston make all their money from performance rights, meaning from money they make from ticket sales to their concerts. The huge money in music comes from production and songwriters rights. Every time you hear a song on the radio, on a television show or anywhere really that song generates revenue. It is usually split with 50% going to the producer and 50% going to the writer.
In the case of “I Will Always Love You” the production credits and song writers royalty both go to country superstar Dolly Parton . Parton wrote the song and released it on her own before it was covered by Houston n the hit movie “The Bodyguard”. Every time the song is played in tribute to Houston Parton is making money.
You might think that her death will make her estate a fortune off of record sales, but those too are not real money makers for artists. They are money makers for record companies. Star singers like Houston tend to make their money on performances, and Houston will not be making any of those anymore.
Do you think it is fair that one artist can capitalize on the death of another?
