[pyre]

IIRC, the major label deal goes like this:

  * Major label gives artist a loan for $X to cover the costs of
    producing the album.
  * Artists earn back something like 12% on album sales (though I
    believe 12% is on the high end).
  * That 12% goes directly towards paying back the loan for the
    production of the album.
  * Artists don't retain the copyrights to their works (at least the
    recordings, they may retain copyright to the lyrics, depending on
    the contract/studio).
  * Artists don't give a cut of merchandise sales, or ticket sales for
    live shows.
  * Artists retain the copyrights to recordings of live performances,
    which is how bands like Grateful Dead or Dave Matthews can allow
    'bootleg' recordings of their live shows.
  * The studio retains rights to copyrights of live shows that are
    professionally recorded for the purposes of putting out a 'live'
    album though.
  * Most artists are never able to pay back the initial loan to create
    the album.

[smackfu]

The other side:

* Major label advances an unknown artist a bunch of money.

* Album sells poorly.

* Artist never pays back advance.

* Major label would have been better not making the deal.