They are also referred to as a “360° deal”, a “270° deal” or a “180°deal”, depending on which rights are contracted for. But essentially, the contract grants the label more control over the artist, and entitles the label to more of the artist’s income from sources other than record sales. For example, a typical “360° deal” entitles the label to receive a set percentage from four of the artist’s revenues streams. Simply put, a 360 deal is a business relationship between an artist and a music industry company.
With a 360 record deal, the label also takes a percentage of such revenue streams as touring, merchandising, endorsements, music publishing and even acting and modeling. Typically, a new artist or group would receive 14-16% of the suggested retail list price of each record sold, minus deductions for packaging, free goods, etc. In the past, major record companies when signing an artist simply required that they take a share of record royalties. What is a 360 Record Deal? Usually the label will ask to have right of assignment to subsidiaries, which is OK, if the label guarantees to uphold the terms of the record deal and maintain the best interests of artist.
In short, a 360 deal is exactly what it sounds like – the Label takes a percentage of numerous income streams (recording, touring, merchandising, ancillary activities, fan club, etc.). A recording contract (commonly called a record contract or record deal) is a legal agreement between a record label and a recording artist (or group), where the artist makes a record (or series of records) for the label to sell and promote. It doesn’t have to be between record label and artist, as seen in the 2007 360 deal signed between Madonna and promoter Live Nation (Jay-Z signed a similar deal in 2008). This article will discuss the components of a 360 deal and how the artist can best negotiate one. Pending on who’s arguing, the 360 offer isn’t necessary a bad model. The deal should also restrict the rights of assignment, which means the ability for each of the parties to transfer the rights granted in the record deal to another party. In recent years major labels have been almost exclusively offering new artists what are known as “360 deals.” In the traditional major label recording contract the record company only took a percentage of record sales. What Is A 360 Deal? The 360 Deal (aka Multi Rights Deal) set the modern tone for Label negativity. What is a 360 Record Deal? Like all contracts, a 360 deal will vary from label to label and artist to artist.