360 deal
Encyclopedia
In the music industry, a 360 deal is a business relationship between an artist and a music industry company. The company agrees to provide financial support for the artist, including direct advances as well as funds for marketing, promotion and touring. The artist agrees to give the company a percentage of all of their income, including sales of recorded music, live performances and any other income.
The business arrangement is an alternative to the traditional recording contract. During the first decade of the 21st century, revenues from recorded music fell dramatically and the profit margins traditionally associated with the record industry disappeared. The 360 deal reflects the fact that much of a musician's income now comes from sources other than recorded music, such as live performance and merchandise.
, the first new artist 360° deal was created by Hanson along with attorneys Jim Zumwalt and Kent Marcus, and Jim's partner Orville. It was submitted to Atlantic Records for the rock band Paramore
while Hanson, Marcus and Zumwalt were employed by the label. Hanson has said there was strong resistance to the deal by both label and band and that he had to fight to make it happen, but believes his efforts were vindicated by the band's subsequent success, saying: "How else would a label have been patient enough to put the band on three straight Warped tours and down-streamed the band to Fueled By Ramen all while losing millions of dollars?"
360 deals have been made by traditional record companies, as in Robbie Williams
's pioneering deal with EMI
in 2007.
They have also been made between artists and promoters, as with Live Nation
's 2007 deal with Madonna
and 2008 deal with Jay-Z
.
The business arrangement is an alternative to the traditional recording contract. During the first decade of the 21st century, revenues from recorded music fell dramatically and the profit margins traditionally associated with the record industry disappeared. The 360 deal reflects the fact that much of a musician's income now comes from sources other than recorded music, such as live performance and merchandise.
History
According to Jeff Hanson, head of Silent Majority GroupSilent Majority Group
Silent Majority Group is a record label founded in 2006 by artist manager Jeff Hanson that concentrates on finding up-and-coming rock bands such as Framing Hanley, as well as providing a home for established acts such as Candlebox and Tantric. The label also provides artist and producer management...
, the first new artist 360° deal was created by Hanson along with attorneys Jim Zumwalt and Kent Marcus, and Jim's partner Orville. It was submitted to Atlantic Records for the rock band Paramore
Paramore
Paramore is an American rock band from Franklin, Tennessee, formed in 2004. The band consists of lead vocalist Hayley Williams, bassist Jeremy Davis, and guitarist Taylor York...
while Hanson, Marcus and Zumwalt were employed by the label. Hanson has said there was strong resistance to the deal by both label and band and that he had to fight to make it happen, but believes his efforts were vindicated by the band's subsequent success, saying: "How else would a label have been patient enough to put the band on three straight Warped tours and down-streamed the band to Fueled By Ramen all while losing millions of dollars?"
360 deals have been made by traditional record companies, as in Robbie Williams
Robbie Williams
Robert Peter "Robbie" Williams is an English singer-songwriter, vocal coach and occasional actor. He is a member of the pop group Take That. Williams rose to fame in the band's first run in the early- to mid-1990s. After many disagreements with the management and certain group members, Williams...
's pioneering deal with EMI
EMI
The EMI Group, also known as EMI Music or simply EMI, is a multinational music company headquartered in London, United Kingdom. It is the fourth-largest business group and family of record labels in the recording industry and one of the "big four" record companies. EMI Group also has a major...
in 2007.
They have also been made between artists and promoters, as with Live Nation
Live Nation
Live Nation is a live-events company based in Beverly Hills, California, focused on concert promotions. Live Nation formed in 2005 as a spin-off from Clear Channel Communications, which then merged with Ticketmaster in 2010 to become Live Nation Entertainment....
's 2007 deal with Madonna
Madonna (entertainer)
Madonna is an American singer-songwriter, actress and entrepreneur. Born in Bay City, Michigan, she moved to New York City in 1977 to pursue a career in modern dance. After performing in the music groups Breakfast Club and Emmy, she released her debut album in 1983...
and 2008 deal with Jay-Z
Jay-Z
Shawn Corey Carter , better known by his stage name Jay-Z, is an American rapper, record producer, entrepreneur, and occasional actor. He is one of the most financially successful hip hop artists and entrepreneurs in America, having a net worth of over $450 million as of 2010...
.
Criticism
360° deals have attracted criticism from various quarters. Panos Panay, CEO of online music platform Sonicbids, has said:"If you want to find out the future of 360° deals, look at Motown in the late 60s. Motown was the pioneer of a 360° deal ... They owned your likeness, your touring, publishing, record royalties, told you what to wear, told you how to walk … It made for great entertainment but if you look at every one of those artists, what happened? Sooner or later they said, 'I’m not going to go on the road for 200 shows because you tell me so. I’m an artist! I’m a creative person!' Eventually all these artists left ... There’s two things we know about creativity: you can’t force it and you can’t really control it.