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What's the Point of Recoupment?
At the time, typically the publishers would keep like 50 % of the song writing economics. Even that was very good from the artist's perspective, compared to the splits with the labels on the master side. Now, when you sign a distribution deal where a record label fronts you the money, they then own the master your royalty stream. You only get to participate in those revenues if you've recouped your the advance, the cost. It is literally exactly what it is.