How to Determine If a 360 Deal is for You
New artists should recognize that in today’s music business, 360 is an option to consider. In past years, the sale of music was enough to sustain the music business. In this internet age of digital downloads, labels had to reconsider where their revenue came from and Contracts had to be re-evaluated.
Artists used to sign contracts with labels about the sale of their music. Now, Artists must do deals reflecting the sale of their brand. Quite literally, you must be prepared to sell yourself in all markets. The “Multiple Rights Deal” better known as the 360 deal, is just that…a deal that will encompass everything! Not just record sales, but money artists made outside of the scope of their “record deal”. This would include money from concerts, appearances, merchandising, endorsements and etc. With Major Labels seeing the decline of retail sales and the increase of artists selling everything from liquor to cologne, and being involved in everything from restaurants to car design, it is easy to see why the focus shifted from the music to the brand.
The immediate down side that the Artist tend to see glaring at them is they will have to share a part of EVERYTHING they make (It is very important to hire an attorney who knows the complexities of the 360 deal). However, where a major label marketing push would previously help with record sales, now a major label marketing push is able to help you market your brand to a wide reaching audience. The “Record Deal” as it were, could be considered a done deal, but the “Brand Deal” is now alive and kicking.
New artists still need to make sure they have a strong product and a strong presence in all markets, and then hopefully they will do a deal that can expand their brand to the next level.
The questions are, what level are you trying to reach, and what is your plan to get there?