A 360 deal is a relationship between the artist and the music industry company. The company promises to provide the artist with financial support: Direct advances, Marketing funds, Promotion and Touring. A percentage of all of the artist’s income; sales of recorded music, live performances, and any other income is given to the music company. This is the alternative business arrangement to the traditional recording agreement contract. Due to the recent changes in the profit margins in the music industry 360 deals are becoming more common due to the fact that artist depend on other resources of income besides recording music.
In todays Music industry 360 deals are becoming the norm. Part of this is because of the technology changes over the years, which have affected record sales. Lyor Cohen respected music exec touches on this in detail. He explains how the music industry is going through a transition right now due to the digital world that society has become. He references Lady Gaga’s success as an example of the music industry still striving; she was able to sell over a million copies of her latest record. Cohen as the head of Warner Music group has nothing but positive things to say about 360 deals. In the past 10 years Warner Music Group has lost over 10 billion dollars. Cohen is very confident and positive about the success of today’s common agreement between the artist and label 360 deals.
Most artists just need to do their own research and make sure they completely understand exactly what a 360 deal is and what the underlining terms are in the contract they are signing. This will defiantly have a positive result, when the communication is clear between the artist and the label. The artist must look at the 360 deal as an investment in their career and not them signing their “life” away.
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