Understanding a 360 music deal
“If you’re reading this… Congratulations, you’re alive. If that’s not something to smile about, then I don’t know what is. - Chad Sugg
MBABANE - Most artists find themselves caught up in a record deal for most of their music careers.
A 360 deal is the most common record deal that artists sign with record labels, it is imperative that artists understand what they are getting into.
According to research done by this publication, the name implies 360 deals which are sometimes referred to as mul ti rights deals, which gives record labels a share of the artist’s entire income,.
This includes earnings from touring, song writing, licensing, merchandis ing, digital platforms, sponsorship’s, endorsements, motion picture acting, song writing publishing, merchandise, modeling and literally everything else. The record label, in a summary are entitled to a percentage of all revenue an artist generates related to their music.
Essentially, a portion of profits from any money making activity undertaken by the artist goes to the record company. For example, if your 360 deal includes
per cent gross live performances, when an artist includes all their other potential revenue streams, this could be a significant amount of money given up to the label. ,f not planned for correctly, could end up being a net loss for the artist. Record labels ask for a significant portion of a musician’s income from other sources. As a musician, it’s impor tant to understand and potentially nego tiate how that income gets calculated.
Labels
,n exchange for signing, record labels are supposed to help build the artist’s brand as a whole.
Through their networks of contacts, they would then be liable to helping artists develop new business oppor tunities and new streams of income, which is rarely the case. The deals vary depending on how big the artist is, and the type of income streams the record company wants.
This publication felt it was impor tant for musicians to understand the pros and cons of a 360 deal. A multi rights contract gen erally reduces the amount of revenue an artist can earn. The degree to which this impacts the artist depends on the per centages granted to the label. ,n the past, an artist could generate significant income from touring, merchan dise and publishing. There would be percentages given to management, the book ing agent, the publishing company and others. %ut in this day and age the record la bels are entitled they understand the music industry in depth. They would guide an artist in these kinds of deals, and can speak their language on their behalf. With a good lawyer, an artist can negotiate better terms to benefit the artist, especially where the artist is already making mon ey. 6econdly it’s important to clearly define your percentage splits
This might seem like a no brainer, but it is imperative to get all the division of profits solid on paper. For example, if a label wants 0 per cent of your perfor mance revenue and 0 per cent from merchandise and endorsements make sure that it is clearly defined with no vague term which is where your lawyer will come in handy.
Terms
Additionally, there is nothing wrong with asking for terms to sweeten the deal, if a label wants 0 per cent of performance revenue, an artist can negotiate to have them pay for room and board for the entire tour. ,f they want a cut of the merchandise, suggest having a stake in manufacturing the merchandise.
An artist shouldn’t be afraid to carve out more benefits in exchange of their share. When reached for comment regard ing the 360 deals 6ibusiso 6imelane who is the Founder and 'irector at Upscale Re cords, said “We don’t offer a 360 deal, yet looking from the outside in, our deal looks like one due to the fact that we offer all the services that the artists need. ,n order to grow which includes man agement, unlimited studio time, mu sic distribution, music public rela tions, plus mixing and mastering.”
+e added that their current finan cial stance did not allow them to make offer a 360 deal. 6imelane then continued to say “We at Upscale Records are management first, some know us because we worked with and managed '- Tendaness for four years at the peak of his career. Therefore our record label comes in as a partner to offer the primary keys that artists need.”
Distribution
+e went on to share that they have a deal with one of the best distribution companies in the world, µThe Orchard µ which is a subsidiary company for 6ony 0usic Entertainment. They also offer music distribution for Ambitious Entertainment, 9th 6eason, Afrotaiment to mention a few. The record label also offers financial assistance in terms of music videos and other stuff.”
When Tui]]ed if it the 360 was fair a deal, he said “ When reached for comment from an artist’s point of view /yrikal %usta who is a local +ip +op Artist said, “0usic is Must like any other business, and every investor at some point needs their return in investment. , think it’s all in the agreement and the contract that’s put in place. , look at as a business at the end day, no feelings involved,” said the artist.