So tonight is the final of Australian X-Factor season 5. It’s been heck of a series, and unearthing Dami Im has been a revelation.
There’s no doubt the huge marketing juggernaut like X-Factor and Idol has created stars, but do the winners actually find financial freedom?
Evidence for “Yes”
Earlier this week, UK boy band One Direction became the richest celebrities under 30 in the UK. Beating out a few names you know – like Daniel Radcliffe (Harry Potter), Carey Milligan (The Great Gatsby) and Adele.
You may not know that One Direction was in fact the 2010 winners of UK X-Factor. And even more amazing is that out of the top 30 list, Leona Lewis (2006 winner) and JLS (2008 winner) feature. While Susan Boyle from the 2009 Britain Got Talent beat all of them in the overall rich-list rankings.
Evidence for “No”
X-Factor Australia doesn’t give direct detail on the worth of their lucrative recording contract and management deals. Rumours are it’s worth around $500,000. In the UK and US examples, we’ve seen the value of these contracts reduce season after season.
The biggest misconception is that the recording contract means $500k to the artist on day one. Typically such contacts cover 4-5 albums. Which means advance payments for any album would be less than $100-$150k. And a typical artist takes 1-2 years to write enough music for an album to be even considered.
Without details on these contracts, the Australian website only provides total prize money of $65,000+ for the flights and accommodation for contestants who successfully progress. Great holiday package, but keep in mind there’s a whole lot of income foregone as contestants take time off from work for the show.
That’s not the only income you forego either, there’s been numerous exposés on the contract clauses too. Clauses like:
– Voice dubbing in any language
– Promoting the show without pay for 1 month
– License to use any information or recording produced for the show
All of which may not sound like much work, but it all means possible future income waived up-front.
What it all means
Out of all the winners of these big-budget talent shows, only about half have had number 1 hits in their country, let alone multi-platinum album sales. What these shows provide is a platform for budding stars to build a celebrity profile.
One Direction licenses their branding to clothing labels, Leona Lewis launches cosmetics lines with the Body Shop, and Guy Sebastian (Aussie Idol winner) is a judge on X-Factor (which happens to pay really well). This is where the financial freedom is achieved.
So Dami, Jai and Taylor – the challenge is on for you. I look forward to following your journey!
Bosco
