An exemplar of this is the now common 360 deal, wherein an artist signs over a percentage of rights to every money-making activity to their label - in return (in theory) for support from the label. It is a controversial practice from an industry historically mired in controversy over its treatment and exploitation of artists.
|Excerpt from an interview featured on ezine Blabbermouth with the Staind frontman, & (above) Indie innovator Alan McGee (Creation Records) pulls no punches!|
THEBALANCE.COM GUIDE (click through for their take on the controversies aurrounding this model)
Under 360 deals, which are also called "multiple rights deals," record labels may get a percentage of revenue that may have been previously off limits to them, such as:
In exchange for getting a bigger cut from the artists they represent, the labels say they will commit to promoting the artist for a longer period of time and will actively try and develop new opportunities for them. In essence, the label will function as a pseudo-manager and look after the artist's entire career rather than only focusing on selling records.
- Digital sales
- Tours, concerts and live performance revenue
- Merchandise sales
- Endorsement deals
- Appearances in movies and television shows
- Songwriting, lyric display and publishing revenue
- Ringtone sales
Similar to traditional recording agreements, the 360 deal allows the label to acquire the copyrights in the artist’s recordings and options for multiple albums. In addition, the 360 deal agreement also includes the traditional deal agreements where producer royalties, net sales, foreign sales, reductions for packaging, budget records and "new technology" are all deducted from the artist's royalties.
READ MORE - A SIMPLE SEARCH...
Under traditional deals, artists would be paid a small royalty by the record label, which was even smaller after all the deductions were made for producing an album or track. Unless the artist's album was a major commercial success, no recording royalties were expected for the artist, instead profits from publishing, merchandise, touring, endorsements, and other sources of revenue all belonged to the artists.
You can easily find articles on this, a still highly controversial business practice by an industry that has a longstanding reputation for cynical mistreatment and exploitation of artists. A simple 'music 360 deal' search will offer up definitions, and some news articles, but you can also try adding a publication (newspaper, magazine, ezine) name to the start of this search, or a genre (or artist!), or terms like controv* (the * means you get all words starting controv) to the end of it....
You can see some results examples below with search links, revealing TV show The Voice (backed by Universal) as a good example of the controversy, Lady Gaga as an example of a beneficiary of this approach, .
A simple search...
Adding a news outlet...
Here I added a genre (electro-pop)...