Dan Charnas: The Big Payback: The History of the Business of Hip-Hop

In December 2010, an NPR Staff writer wrote, “How Hip0Hop Became a Cash Machine” for the show, All Things Considered. Thirty years ago, hip-hop was background noise at small house parties in Harlem and the South Bronx. Now, it's a multibillion-dollar empire. A new book, The Big Payback: The History of the Business of Hip-Hop, tells the story of the genre's humble beginnings — from one person behind a few turntables and a microphone — and how it morphed into a way of life, with designer clothing lines, political movements and vast wealth. But in the early days of rap, a lot of the money stayed with the label owners, not with the musicians. Charnas notes that some hip-hop dignitaries railed against "how onerous recording contracts were and how tilted the relationship was between artists and record companies."

“Sometime in the middle to the end of the last decade, BusinessWeek estimated that the hip-hop business had grown to, on the music side, about $1 billion a year, and on the fashion side, $2 billion a year.”

- Dan Charnas, author of The Big Payback: The History of the Business of Hip-Hop

“For the first time, black artists were really not only embracing but insisting on their own self-worth.”

- Dan Charnas, author of The Big Payback: The History of the Business of Hip-Hop

In December 2010, Jim Farber wrote “'The Big Payback: The History of the Business of Hip-Hop' by Dan Charnas follows the money” for the New York Daily News. The story of hip hop has been told from many points of view, but never from those who've had the strongest power over its destiny. That would be the corporate backers and entrepreneurial enablers, those market forces that finessed a street trend from New York's most embattled neighborhoods into a global phenomenon. Dan Charnas has done a real service to pop history by following the money -- a pursuit which ultimately tells a far larger tale: In hip hop, it seems, cash isn't just a matter of bling. It's the currency that gave this once outsider art -- and by extension, a marginalized race -- a louder, clearer and more important voice all over the world.

“I think Sugar Hill saw themselves as riding out a fad. I don't think they had any particular belief that this was a powerful culture that had staying power. We'd just come off of the disco era, which turned out to be very, very short-lived, and I'm sure that a lot of people, including Sylvia and Joe Robinson, thought that the same would happen to this rap stuff. The difference was that Russell Simmons did not like the records that Sugar Hill was turning out because they didn't sound to him like the hip-hop that lived in the streets and the parks and the clubs, which was very raw, very beat-oriented, and didn't sound like disco at all. And so Russell Simmons' key innovation, when he made Run-D.M.C.'s first record, was to basically order his producer-partner Larry Smith to take out all the music. 'I just want to hear a beat,' he said.”

- Dan Charnas, author of The Big Payback: The History of the Business of Hip-Hop

Jay-Z: Decoded

Shawn Corey Carter (born December 4, 1969), better known by his stage name Jay-Z, is an American rapper and businessperson. He is one of the most financially successful hip-hop artists and entrepreneurs in America having had a net worth of over $450 million in 2010. He has sold approximately 50 million albums worldwide, while receiving ten Grammy Awards for his musical work, and numerous additional nominations. Jay-Z co-owns The 40/40 Club, is part owner of the NBA's New Jersey Nets and is the creator of the clothing line Rocawear. He is the former CEO of Def Jam Recordings, one of the three founders of Roc-A-Fella Records, and the founder of Roc Nation. As an artist, he holds the record for most number one albums by a solo artist on the Billboard 200. Jay-Z also has had four number ones on the Billboard Hot 100, one as lead artist. Along with his financial and musical success, Jay-Z is known for quarreling with other artists in the rap industry, the most famous feud being between him and fellow New York rapper Nas, which was eventually settled in 2005. He married American R&B superstar Beyoncé Knowles on April 4, 2008. On December 11, 2009, Jay-Z was ranked as the 10th most successful artist of the 2000–2009 decade by Billboard Magazine and ranking as the 5th top solo male artist and as the 4th top rapper behind Eminem, Nelly, and 50 Cent. Source: Wikipedia.



Excerpt (Jay-Z on Bono): The writer had asked me about the U2 record that was about to be released and I said something about the kind of pressure a group like that must be under just to meet their own standard. Bono told me that my quote had really gotten to him. In fact, he said it got him a little anxious. He decided to go back to the studio even though the album was already done and keep reworking it till he thought it was as good as it could possibly be.



Excerpt (Jay-Z on assault charges): People kept giving me the same name as the source of the bootlegging. It was someone I knew, someone I never would have suspected. One night I went to Q-Tip's solo album release party and at some point in the night, I ran into the guy everyone's been telling me is behind the bootleg. So I approached him. When I told him what I suspected, to my surprise, he got real loud with me right there in the middle of the club. It was strange. We separated and I went over to the bar. I was sitting there like, 'No the f--- this n---a did not ... " I was talking to people, but I was really talking to myself out loud, just in a state of shock. Before I even realized what I was doing, I headed back over to him, but this time I was blacking out with anger. The next thing I knew, all hell had broken loose in the club. That night the guy went straight to the police and I was charged with assault.

NPR program Fresh Air with Terry Gross featured the author and book on its program in November, 2010. This is what was said on the feature story's webpage:

Long before he sold 50 million records worldwide — and before he appeared alongside Warren Buffett on the cover of Fortune magazine, accumulated 10 Grammy Awards and became the CEO of his own record label — Jay-Z was living with his mom in the Marcy Houses housing project in Bedford-Stuyvesant, Brooklyn, just trying to survive day by day. "It was a very intense and stressful situation," he tells Fresh Air's Terry Gross. "There was playing in the Johnny-pump (an opened fire hydrant) and the ice-cream man coming around and all of these games that we'd play, and suddenly it would turn just violent and there would be shootings at 12 in the afternoon on any given day. It was a weird mix of emotions. One day, your best friend could be killed. The day before, you could be celebrating him getting a brand-new bike." Now 40, Jay-Z hasn't forgotten his past — or the lyrics he's written over the years about his childhood in the projects. In his new book, Decoded, he unpacks the detailed riffs and lyrics that make up 36 of his songs — while examining both his own life and the growth of hip-hop over the last two decades.