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Re:Scammers Game Amazon A-Z Policy By Replacing iPhones With... by pyre on Tuesday June 21, 2016 @04:30PM (#11949161)
> it's yours to keep and the label eats the cost

Not quite. It's structured as a loan. As far as book-keeping goes, they write it off as a sunk cost, but you still owe them. The contracts usually tie you to them for a period of time (or something like X albums). If you make a single album and it flops, you are still tied to them. If they decide not to give you the money to make more albums your music career is basically over.

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