Sign on the Dotted Line

The 360 Deal

When I was at the Bandwidth Conference earlier this year, one of the main topics of conversation was what those in the industry refer as a '360 deal.' An article in the New York Times breaks down all of the details - thanks to my friend Nick at Penny Distribution for linking to this article in his blog post on the same subject. Essentially, it refers to a label deal where the record company not only maintains a financial stake in your releases - but in your touring and merchandise as well. At the conference, label reps advocated on behalf of these deals as what the modern label needs to do - while artist managers discussed such alternatives as taking a smaller advance in order to avoid such a deal.

We all agree that the business "is changing" or "has changed." Clearly, selling music as a product means something very different now that what it once did. As artists are outgrowing the major label structure and indie-ish bands have more of a shot, the lines between label, touring and merchandise are blurring. While I think the labels of the new era will adopt a role in all areas - however, these deals do not strike me as the most "artist friendly." However, if you're an artist looking to make an upgrade, maybe it's the best available.

It would appear in all of this that Will.I.Am of the Black Eyed Peas just might have the answer:

Record companies should be a tour company that sends the bands on the road and still puts the fuckin' shits on the radio. The reason the song's on the radio is so they can sell concert tickets and T-shirts. The labels should do research on the marketplace, and they should be the band's merchandise company, going out and flooding the market and selling T-shirts. Billboard should have not just how many albums you sold, but how many fuckin' T-shirts you sold, because that's more money, and that's my manager's idea.