Heather McDonald of about.com defines The 360 Deal, as
contracts that allow a record label to receive a percentage of the earnings of
all of a bands activity instead of just record sales. Under 360 deals, also called “multiple rights
deals”, record labels may get a percentage of things that were previously off
limits to them, like:
Concert revenue
Merchandise sales
Endorsement deals
Ringtones
It’s like a package deal offering concert booking, and
merchandise sales, etc. It is a deal
with the record company, in which the record company participates in the income
of all aspects of an artist career, in addition to making money off the
records. It seems to me that the label
is also the artist manager; the label is involved in all deals of the artist
revenue. I believe this could be a good
deal, the “one stop shop” you could call it, and the label with everything the
artist will need to enhance the artist career.
A good example is Live Nation; the Madonna deal was $120
million, Jay-Z signed a deal as well, with the concert promoter worth roughly
$150 million. Live nation is the
promoter and the deal makes them the exclusive promoter. Money is made from the concerts; merchandise sales
(in which the sales are made through the website and at concerts), and touring. This deal could be a win situation as long as
the artist pays close attention to what comes with the deal.
No comments:
Post a Comment