|
|
| Paul Gardner, Esq. |
Record labels invest an enormous amount
of money into artists, and lately that investment has not been paying off. 2008 year-end sales figures just released
by The Nielsen Co. show total album sales, including album equivalents made up of single digital tracks, fell to 428.4 million
units, down 8.5 percent from 500.5 million in 2007. Physical album sales fell 20 percent to 362.6 million
from 450.5 million units. Thus, the old way of artists giving up 85% of their album shares, but still profiting from
their tours, their merchandising and their publishing; has now become the “360-Deal” or the “Multi-Rights
Deal”.
|
What this means is that not only do record labels get about
70-85% of album sales, they will also receive a cut of tour sales, merchandising, and publishing. However, 360 deals are not
all that bad because a smart artist will receive a larger advance and up to 30% of album royalties (double the standard percentage).
Also, a smart artist realizes that a 360 deal, if leveraged
correctly, will give the record label more incentive to push the artist, and market them in every possible way (more money
for everyone involved)!
Paul Gardner represents entertainment clients in film, music,
television and multi-media projects. The Gardner Law Group
10 North Calvert Street, Suite 735 - Baltimore, Maryland 21202 - (410)
545-0470
thegardnerlawgroup.com
|
