360 Record Deal Contract Example
When we examine today’s world of music and contracts we stumble upon something called a 360 record deal. It is a contract that is most used today by the record labels and even managers of the music industry. The contract is shunned by most, if not all indie artists and music enthusiasts because it states that the record label will now only own the recordings of the artists sign to them, but they will also receive a percentage of their gross income from all avenues they exploit for the artist.
So these avenues include just about everything! Album sales, single sales, merchandise, concert ticket sales, mixtape sales, appearance fees etc. All monies generated as income the record label wants a huge percentage of that. They want those funds for 7-8 years and some labels are trying to make even longer contracts to keep receiving those funds. The royalties that artist receive are for a lifetime, and the labels will take a chunk of that income for a lifetime!
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So What’s The Big Deal About A 360 Music Contract?
Well record labels want a percentage of every avenue that artists have built off of their talent, skills, and abilities. The record label is just a financier of the music they push. You can say that the record label is just a bank that’s all! They finance your recording sessions and some of the marketing and that’s about it! A record label does not have artist development, performance training, media training, singing lessons, music production schools, business classes etc. S why should they get a piece of the pie? It’s the artist who is doing everything so they artist deserves most of the income.
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What Are Some of The 360 Deal Percentages
The 360 Deal percentages will indeed vary from record deal to deal. There is no set amount. Essentially record labels will opt to take a larger amount when it comes down to it. They want their hands in all pockets. Whatever income you generate they want some of it.
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Why Were 360 Music Deals Started
They were started because the sale of albums are no longer as strong as they use to be. Back in the day albums use to sell like crazy and labels profited off those sales handsomely. now with the invention of the internet, millions of people can get their music free or close to dirt cheap. As a result physical album sales have suffered. The only way record labels can get their money back is from dipping their hands into all income revenues that artists produce.
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Now that we have gone over a brief description of what a 360 record contract is, we are delighted to present you with examples. We have contacted the law department at Harvard to ask them for examples of a 360 deal contract template The have provided one below. Be sure to spread the link throughout your social media platforms, and thank Harvard for the documents they have provided to us. Keep in mind that normally a music contract will not flat out say “360 Deal Contract” right smack on it. That’s not how it works.
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The contract will most likely state that it is a recording contract or exclusive music contract and will have 360 features outlined within it. For example, notice in this contract under licensing of musical compositions, ancillary exploitation, co-publishing, revenue sharing and touring; the company (record label) wants to share or completely own net profits of your income. Gross income is what you earn before taxes, net income is what you take home after taxes!!!! Pay attention. 360 deals only benefit record labels. If you have any questions or want us to negotiate deals for you contact us at: realhipoppushpromo@gmail.com
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