Monday, April 19, 2010

Music Business/Law Tips - "360 Deal"

A 360 deal is either a “rights grab” by the label to make sure they profit from an artist if the artist blows up, or is an incentive for the label to actually put more effort into marketing and promoting the artist. The truth is probably somewhere in the middle, and the concept is so new there are not yet many known examples for the artist to hang their hat on as a guideline. In any event, unless the artist has a lot of leverage going into the deal, they will probably not have any choice but to enter into this type of agreement in the current music business. If so, at least hold the label’s feet to the fire in the contract by requiring them to pay advances for the extra rights they participate in (i.e., touring, merchandise, publishing), and to commit to spending money to market and promote those rights so that the money pie gets bigger and everyone wins.

Ben McLane Esq

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