Jessica Sanchez: Screwed Over by New American Idol Contract

Jessica Sanchez picked the wrong year to finish second on American Idol.

In the wake of this singer's loss to Phillip Phillips, an Associated Press report took a look into changes made to the season 11 contract for all contestants.

It states that this year's runner-up is only entitled to a "developmental" deal with 19 Recordings, something that could net Sanchez between $30,000-$60,000, depending on the number of single's commissioned by the label. This marks the first time in history the second-place finisher has not been awarded a guaranteed album and $175,000 advance.

Yes, Jessica could still see that figure if 19 Records does order a CD; and she'll also bank $50,000 for all future Idol-sponsored public appearances.

But why the change in guarantees?

Because ratings for American Idol are down; a majority of albums from show finalists have not done well; and because the music industry overall has changed: in 2011, nearly 1.3 billion singles were purchased, while only 331 million albums were moved.

Phillips, meanwhile, received $300,000 and an album contract for winning.

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