360 Deal / Multi-Rights Recording Deal
A 360 Multi-Rights Deal in the music business is a contract
that permits a label to get a percentage of all of an artist's revenues - instead of just record sales. 360 deals are also
called "multiple rights deals" which basically allows a label to earn money from the artist's music, concerts, music
publishing, endorsements, and more.
Labels invest a lot of money into recording artists, and
in recent years, that investment has not been paying off. Latest 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 million units, down 8.5% from
500 million. Physical album sales fell 20% to 360 million from 450 million units. So, the older way of recording artists giving
up 85% of album shares from their recording contract, but still profiting from their live shows & touring, merchandising
and music publishing has now become the 360 Deal, or the Multi-Rights Deal. What this means is that not only do labels get
about 70-85% of album sales, they also get a percentage of touring, merchandising, and publishing.
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