360 Degree Contracts - Why It May Make Sense For The Artist!

360 Degree Contracts seem to always have 2 camps. Those who are in favour of it and those who think the labels are incapable of delivering such services and some people who just believe everything should remain the way it was.

In reality the 360 Degree Contract looks like a runaway train, only this one can hardly be stopped because it is being propelled by the environment; in this case the business environment. Going back to how things were in relation to the core operations of record companies has to be a thing of the past. Survival is crucial, understanding has increased, trust can be built and businesses need to focus on new opportunities.

So what about the artist - is a 360 Degree Contract good for them?

There are a few reasons why it could be good.

It spells bigger advances- In the past an artist who writes songs would have to go to a variety of places to get an income; namely the record companies and the publishers. But with the other potential income such as Live Music, Merchandise, Sponsorships etc. the artist can request a small nest egg in advances.
Management is central- In situations where an artist is only signed for a recording contract, there will be other people he/she would have to deal with. For example, although the artist may have a manager, touring is likely to be offered by a separate agent. Unlike in a 360 Degree Deal, you will have the same company coordinating the process and making it run smoother.
Economies of scale- Since many of the 360 Deals are based on profit sharing, the lower the cost the higher the percentage to the artist. A central management system will invariably reduce costs. It is hoped that this reduction can be a benefit to the artist who has given over a range of rights to the label. In simple terms, if an agent is in play there will be a cut to the person and that will be a deduction from the profits.
Fairer profit splits- In the old contracts unless the artist is selling millions of CDs the royalty was caped. 8-12% of retail was common. Under those contracts many artists could hardly survive. Now under the 360 Degree Contracts even some companies are given a 60:40 deal in favour of the artist.
It is now a partnership- The old model can sometimes feel like slavery or unfair. A 360 Degree Contract can be like a partnership because both parties are working towards the same end. It would be for the benefit of the artist to ensure great performances and good work ethic is injected into the programme so that greater rewards can be had.
Although artists must enter this contract with their eyes open so that the mistakes of the past are not repeated. The 360 Degrees Contract looks like the way forward for most people in the music business today.

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