What Are 360 Deals?
360 record deals or 360 recording contracts have become increasingly more common in the music industry as it continues to be impacted by the internet. These multiple rights deals are typically agreements between a musician and a record label/music publishing company. Under these all encompassing agreements, a record label or publishing company shares in the revenue created from things such as concerts, merchandise, and endorsements. In exchange for a larger share in revenue, the company usually negotiates to provide dedicated promotional services for the recording artist. The record label/music publishing company may also seek to procure additional revenue opportunities, essentially functioning as a management partner. In this manner, the company in question oversees the recording artist’s entire career path.
The 360 Record Deals Controversy
The controversy among many musicians and major record labels is that some people feel the companies are merely responding to financial pressures, the economic recession, and a progression toward a cloud based music business. Others say that 360 record deals are driven by corporate greed and undermine the idea that record labels are genuinely interested in the brand development of working musicians. Regardless, of your stance on the issue, 360 deals won’t be leaving the music negotiation table anytime soon.
Multiple Rights Deals And You
Prior to the dwindling album sales of major recording artists, signing a 360 deal might have sounded like an erroneous decision. However, given the current circumstances, 360 record contracts aren’t necessarily a”bad” thing. Depending on your situation, a 360 recording contract could potentially catapult your music career to the next level.
Making Sense Of A 360 Deal
Take a close look, for example, at artists such as Jay-Z, Paramore, Shakira, U2, or Madonna. All of these recording artists inked 360 deals with companies because the business side of the music made sense. This is one of the most important aspects to grasp when it comes to an all encompassing record contract. If you are confronted with a 360 deal, you must ask yourself “Does this make sense for my current situation?”
The answer to this question can only be determined by yourself and your surrounding executive team. Having a trustworthy, knowledgeable entertainment lawyer, business consultant, or music manager to bounce ideas off of can be invaluable to you when you are deciphering the details of a contract. Keep in mind, your John Hancock on an agreement like this can lead you down the road to success or a journey toward misery. Tread these waters cautiously.
Not every recording contract will suite your music needs, but in the music business you should constantly be evaluating the long term repercussions of your decisions. All 360 deals are not bad, but you must be educated on the ins and outs of your particular agreement in order to ensure that you meet your goals.