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Multi-Rights deals, also known as 360 deals, are becoming more and more common place in today’s music landscape. 360 deals are agreements that permit a label to garner a percentage of the revenue from ALL of a music group’s activities instead of only record sales. in 360 deals, labels may get a percentage of revenue that was previously off limits to them, such as:

  • Merchandise sales
  • Concert Revenue
  • Ringtones
  • Endorsements

As a tradeoff for the label getting a larger cut from the artists they represent, they typically state that they will commit to promoting the group for a longer
period of time and will develop new opportunities for
them. The label will essentially look to function as a manager of sorts
and facilitate the artist’s entire career rather than only pushing the record sales.

 

These deals are controversial for many reasons. First, they’re often viewed as a money grab by labels facing dwindling sales & high cost. The view is that labels have survived for years without these deals, therefore it would appear that
they’re mismanaging their businesses and failing to react
quickly to the changing music industry.

 

Labels claim that these deals let them sign various types of artists because they don’t have to be so focused on recouping their costs from record sales.

 

Good business or not, 360 deals are becoming very common place in major label record contracts.

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