26
2008
“360″ Music Deals Become Mandatory As Labels Prepare For Free Music
An article by 
(spotted @ Tech Crunch)
by Michael Arrington on November 8, 2008
360 Music deals
give labels their standard cut of CD and digital download sales, but also give them a percentage of event ticket profits, merchandise sales, endorsement deals and anything else that uses the artist’s brand or music.
A year ago they were still seen as controversial and experimental. Labels defended them as justification for investing in an artist in a time of decreasing CD sales.
Today, though, those deals are becoming mandatory. Warner Music Group CEO Edgar Bronfman told the Web 2.0 Summit audience that his label now requires all new artists to sign 360 Deals, and that about a third of their signed artists are under those contracts.
Bronfman argued to a hostile crowd that it doesn’t make sense for labels to pour money into artist development when CD sales, their primary source of revenue, continue to decline (although he did say that digital sales now make up 20% of their revenue). Without other ways to make money from an artist, he said, they wouldn’t continue to promote artists.
Bronfman also said that 360 deals give labels the ability to give away music for promotional purposes to spur event and merchandise sales.
And that, for me, is the key. Bronfman, an outsider to the music world until recently, sees the writing on the wall – music downloads will eventually be free, and will serve as little more than marketing collateral to other revenue streams.
360 deals give labels a place in the new music economy, and there’s nothing wrong with their attempt to keep their businesses alive over the long run. Artists can choose to go with them or not, depending on their own opinion of the benefits. If labels really can bring enough marketing and promotional benefits to the table, artists will take those deals. They may be slaves to the labels, but they have a chance (albeit a very small one) of becoming rich slaves, at least.
About the Author: D Woods
An absolute monster in these streets! Online and offline this dude does not know the meaning of easy. He goes hard in the paint all day.
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Bullshit.. Another reason to get your independent grind on.
These labels are tripping. They should of listened to what cats like me was trying to tell em 5 years ago. Most labels don’t even do Artist Development anymore, Bloggers have become the new A&R’s.
If you sign a 360 Deal, your a Sucka!!!
What kaos said. There’s no excuse for a artist to sign this contract if their grizzly game is on point and got a damn computer.
[...] “360″ Music Deals Become Mandatory As Labels Prepare For Free Music And that, for me, is the key. Bronfman, an outsider to the music world until recently, sees the writing on the wall – music downloads will eventually be free, and will serve as little more than marketing collateral to other revenue … [...]
Lets hope artists wise up and not take these wack ass “deals” and get back on their indie grind.. you know what that means if that happens.. The music will be back in control of its rightful owners..the people!!
uhhh yea as usual the industry is about as late as these cats in Atlanta wearing tight jeans making Cool Kids music( I just got back from NY that trend is dying already so y’all may as well start waiting to hop on the next one hahaha) but yeah indie hustle hard….also got my free album dropping in January “GUILTY PARTY” download only if you’re one of the few people these days who listen to beats and rhymes…..peace
It seems to me like this would create more opportunity for those who are signed, how is that a bad thing?
Sure you could do it all yourself, but if you ARE looking to get signed, why not put some more of the money they makin’ off you into your own pocket with a 360 deal?
Mr Mind if you follow the business models (old nad new) of the music industry your erspective may shift a little. It is not a good deal for the artist to share their TOUR, MERCH, ROYALTY & whatever other monies wth the label. Right now cats are only making bread by producing and getting points or touring. It does not create more opportunity for the artist as much as it overs the label’s a**