Artists House Vault: The Deal with 360 Deals

360 deals are not new. Artists such as Robbie Williams and Korn signed 360 deals years ago, when those deals were more the exception in the business than the rule. But 360’s started getting a lot more attention and hype about a year ago as labels saw in them safe refuge from the increasing threat of declining physical music sales.

Today, most labels have embraced some form of a 360 deal as their standard contract. These deals have new implications for today’s artists, So it’s important that bands and musicians have a good understanding of what they are and what they mean.

In our first video, Terry McBride gives a short introduction to 360 deals by explaining what they are. Terry is the CEO and co-founder of Nettwerk Productions, Canada’s largest indie label.

Next, Jason Flom, CEO of Capital Music Group, provides some insight into why 360 deals are attractive to major labels and why they are pursuing them so strongly.

In this next video, Mark Goldstein, former VP of Business Affairs at Warner Bros. Records, weighs the pros and cons of 360’s and whether or not they are worth it for artists. This again points to the fact that there is no one path for today’s artists. Some artists might find a 360 deal helpful in exchange for the more comprehensive support from the label. Others musicians don’t need it, and frankly might effectively cripple their career. It’s about making sure your contract aligns with your particular goals and needs as a musician.

Finally, Jay Cooper, a music lawyer based in Los Angeles, offers his opinion on why 360 deals won’t solve the music industry’s current woes.

Although the excitement of signing a contract with a label can be overwhelming, it’s hugely important that you understand what you are signing. Many artists sign contracts because they are desperate for the investment to launch their career, but end up giving away rights they needn’t have. Consider how a contract will ultimately affect your entire music career, not just what it provides you today.

Our last piece of advice is to never sign a contract before it has been reviewed by a lawyer. Not your divorce lawyer, but an entertainment lawyer! It will cost you a little money up front, but will likely save you both money and headaches in the future.

If you found Jay’s words helpful, he also offers some insights into a 50/50 deal here: what is a 50/50 record deal?

If you’d like to do a little more reading, start with George Howard’s piece about Alan McGee and 360 deals.