WHAT IS A 360 DEAL IN THE MUSIC INDUSTRY,
What is a 360 Deal in simple terms - a 360 deal is an exclusive recording artist contract that entitle a record label to a percentage of earnings from all of an artist's revenue streams, rather than just recorded music sales.
In the music industry, a 360 deal (from 360° deal) is a business relationship between an artist and a record company. The company agrees to provide financial and other support for the artist, including direct advances as well as support in marketing, promotion, touring and other areas. In turn, the artist agrees to give the company a percentage of an increased number of their revenue streams, often including digital and online period, live performance, merchandise, endorsement deals and songwriting royalties.
This business arrangement is an alternative to the traditional recording contract. In a 360 deal, a company typically provides support to an artist in more areas than covered by a traditional recording contract on the condition of receiving a percentage of revenue from these additional areas. 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.
As an indie (record company owners), you can position your company to offer 360 deals to benefit yourself and signed artists or as an indie recording artist facilitate a licensing deal with a major using your brand as a deal maker.
My peers often says I am evoking traditional discourse on recording business, mine is a deliberate intent to educate all, not only the privilege few with access to advanced business knowledge. Don't be shy nor scared to differ with me, any discourse has both sides of the coin... @mandlamasekosnr [Chairperson of Independent Record Companies Of SA] ...