Music Business/Law Tips – "Big Data>Hit Predictor>Deal"

Record companies these days are analyzing what is known as “Big Data” to predict which new artists are bubbling up and might become superstars. Big Data is information generated by digital platforms like Spotify plays, Twitter mentions, Facebook likes, YouTube views, etc., that helps labels pinpoint what songs can be hits by what fans are reacting to. Patterns in the data are looked for and tracked, which makes for a safer bet when a label wants to work with a new artist (then just relying on a gut reaction). This is how the new music business looks, and developing artists are wise to heed the warning that they need to utilize social media if they want to get on the radar of a record company or other media partner. Ben McLane Esq Benmclane.com

Music Business/Law Tips - "360 Record Deal"

In today's record business the "360 Record Deal" is becoming a common arrangement - especially with a new artist - since the label will probably feel that its only worth the effort to spend marketing and promotion dollars to launch an act if they can share in revenues above and beyond simply record sales (e.g., merchandising, publishing, touring). Some of the key areas that need to be considered in a 360 deal negotiation are as follows: 1. Ownership of masters (work for hire vs. license) 2. Term of deal (how many options) 3. Territory (worldwide vs. certain countries) 4. Royalties (records, licensing, streaming, mechanicals) 5. Recording Budgets (advances vs. funds) 6. Marketing/Promotion (radio, video, tour support) 7. Creative Control (approvals) 8. Record label ancillary participation (“360” rights) 9. Out clauses (early termination - guaranteed release, distribution, key man) 10. Side agreements (producers, musicians) Ben McLane Esq benmclane.com

Music Business/Law Tips - Leaving Member

When a band signs an exclusive multi-album record deal it's important to know that the members are typically signing as a group as well as individually. This means that if a member quits, is fired, or the band breaks up during the term of the deal, then the label will still have the first right to put out solo records and side projects of the individual members for the remainder of the term of the group deal. This issue recently came to light with Zyan Malik leaving the popular band One Direction. Malik is signed to Syco (via Sony) both as a group member and individually by way of a "Leaving Member Clause" in the deal. Hence, the label has the option to pick up Malik's contract as a solo artist, and probably for a lower future royalty and fees since the original terms were contingent on him being part of a 5 member group. Based on the success of One Direction and since Malik is a good singer with a fan base, almost certainly the label will want to release his solo product instead of letting him go with no strings. Ben McLane Esq benmclane.com