A 360 record deal, also known as a 360-degree deal or multiple rights deal, is a type of contract between a music artist and a record label that goes beyond the traditional arrangement of simply recording and distributing music. In a 360 deal, the record label seeks a percentage of revenue from multiple aspects of the artist’s career, not just music sales. The label aims to be involved in various revenue streams that the artist generates.
The three major labels in today’s industry are Universal Music Group, Sony Music Entertainment and Warner Music Group — with each having their own subsidiaries.
Record labels typically make money on songs’ master recordings one of three ways: through music sales, downloads and streaming of an artist; brand partnerships where an artist endorses a product; and master licensing, using the exact recording of a song for a commercial, movie or TV show. Labels can also make money on touring, merchandise and other opportunities based on deals signed with artists.
The name “360” comes from the idea that the record label wants to cover all angles of an artist’s income. The typical areas covered by a 360 record deal include:
- Music Sales: This is the core component of any record deal. The label takes a percentage of revenue from the sales of the artist’s music, both physical (CDs, vinyl) and digital (downloads, streams). See related article: Do you need to get signed to a record label: https://inacoustic.com/do-you-need-to-get-signed-to-a-record-label/
- Live Performances: The label may take a percentage of the income the artist earns from live performances, concerts, and tours. This might include revenue from ticket sales, merchandise, and sponsorships related to the live shows.
- Merchandise Sales: A record label in a 360 deal may also get a cut from the sales of merchandise associated with the artist, such as T-shirts, posters, and other branded items. See related article: Do you want a record deal: https://inacoustic.com/musicians-do-you-want-a-record-deal/
- Endorsements and Sponsorships: If the artist signs endorsement deals or receives sponsorships, the label may take a percentage of the income from those sources.
- Publishing and Songwriting: Some 360 deals extend to the publishing and songwriting revenue generated by the artist, even though these rights are traditionally separate from a record deal. See related article: How to Release an Album Online Today as an Independent Musician: https://inacoustic.com/how-to-release-an-album-online-today-independent-musician/
The main argument for 360 deals from the record label’s perspective is that they are investing in the artist’s entire career and not just their recorded music. They aim to recoup their investments from multiple revenue streams and not solely rely on music sales.
However, 360 deals are often a subject of controversy and debate in the music industry. Artists and their representatives may be concerned about the level of control the label exerts over their career and the potential financial impact of sharing revenue from various sources. As with any contract, it’s essential for artists to carefully review and negotiate the terms of a 360 deal to ensure it aligns with their long-term goals and interests.
Enter the 22nd Annual IAMA (International Acoustic Music Awards), see: https://inacoustic.com/enter-here/
