This is precisely why it's important to pay for music.
Any band that isn't on some kind of Metallica level pretty much needs all the money they can get. It doesn't matter how much goes to them, as long as it goes to them. The age-old excuse of "They make more money from shows.", which isn't strictly true, is dead.
Articles like this have been around for ages, Steve Albini himself wrote one.
Not everyone on a contract is being screwed though. However, that's only big bands. Bands like Radiohead can call their own shots, you know?
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