FAQ - 360 degree deals

This is the term of the moment in the industry reflecting the growing trend towards this type of model. Essentially it means that the artists will now be sharing every type of income stream they generate, whether it is from the sale of recordings, songs, live performances, merchandising, sponsorship, endorsements - the lot!

This is a departure from what has happened in the past where artists would normally enter into separate agreements with record companies, publishers live agents and promoters and get paid by each one. 

But now, for example, record labels are looking to make up for declining sales by receiving a share of income from all sources and they do this by acquiring an interest in their artists’ publishing and a share of everything else too. Others like publishers, promoters, investors and brands are also getting in on the act. It’s a minefield.

However, it’s a now financial reality and becoming the norm, so artists need to be prepared. From an artist perspective caution needs to be exercised as you may be giving rights to a company who has little idea of how to work them.

From a label perspective the transition from traditional record label to an entertainment company for this new era is not an easy one as it requires different skill sets if you are to be involved in more than just record company business.

There are many ways to structure 360 deals e.g. 50/50 joint ventures, combined recording / publishing / management deals, combined recording and live performance / publishing deals, investment deals, sponsorship deals, fan-funded deals, production deals, and partnerships between artists and managers.

Let ILS show you the options and provide the advice to allow you make the right choice for you.