What Happens When Labels Recoup Costs #Shorts

How can a group sell millions of records and still end up bankrupt? The story of TLC reveals the hidden financial traps in major label contracts. We break down the mechanics of the 'recoupment' clause—the industry standard where labels charge production and marketing costs directly against an artist's earnings. We look at the 1995 bankruptcy filing and the specific contract terms that turned a global success story into a financial crisis. This video explains why the number of albums sold is often a misleading metric for artist wealth. If you enjoy deep dives into music business history, this one is for you.