Before I start my rant I wanted to give a definition as according to Wikipedia:
- In the music industry, a 360 deal is a business relationship between an artist and a music industry company. The company agrees to provide financial support for the artist, including direct advances as well as funds for marketing, promotion and touring, as an investment to the artist’s lucrative potential. The artist agrees to give the company a percentage of all of their interests, including sales of recorded music, live performances and any other income.
The business arrangement is an alternative to the traditional recording contract. During the first decade of the 21st century, revenues from recorded music fell dramatically and the profit margins traditionally associated with the record industry disappeared. The 360 deal reflects the fact that much of a musician’s income now comes from sources other than recorded music, such as live performance and merchandise.
Now I know Lupe’s train of thought is that the label is already making
This also goes for sponsorship deals and the likes. Companies want to attach themselves to the image of certain artists because record labels have spent lots of money building those images (I also made a post on this phenomena) . Once again it’s only fair that the labels get a return on their investment.
I think there is this preconception that record labels are trying to force artists into 360’s because they’re greedy. No. They are doing it in order to survive. When you really break it down, Labels are investors. However as opposed to most investors, they are investing in an individual person or group and their art. Basically they deal with the commodity of culture. Record labels did a great job of controlling and manipulating that commodity in a profitable manner for a really long time. Then the internet rolled through, and changed the way you monetize the commodity of music. So that is really what a “360 Deal” is. A new way to monetize music for record companies. Never forget that at the end of the day this little thing of ours is a business. We all have to eat. These companies aren’t in the business of losing money for the sake of art. As terrible as that is to say, that is just the reality of the situation.
That being said I think at some point artists can get so big they don’t even need a record label. Look at
Story Taken from www.crackspace.com