The evolution of music distribution has impacted the way people consume music today. With the new ability of obtaining music for free, whether if it is legally or illegally through numerous file sharing sites, record labels have been put in a special situation where they have to come up with new ways to gain profit beyond record sales, their main source of profit in the past. In a new type of record deal, the 360 Deal, the hassle of investing millions of dollars into an musician’s career to get a mediocre return in today’s music business has a potential of being decreased. In Southwestern University’s School of Law professor, Edward Pierson, article Negotiating a 360 Deal which was published in the American Bar Association’s law review Entertainment
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In Pierson’s article it is discussed how this major decline in record sales has started as early as 2000, along with many failed investments of trying to launch an artist. Pierson says, “The anti-360 advocates will argue the advances, resources, and ability to deliver success and results are also diminished in the downsized recorded music companies of today and in an age when the pie for all musicians may be smaller; thus, it is unfair for the labels to now demand a greater share, especially in activities where they may offer little expertise or resources,” (Pierson 1). Both sides of the 360 Deal argument come to the similar understanding that the music industry is not what it used to be when the business was more lucrative, and today companies are trying hard to gain every dollar …show more content…
For example, it is not always the case that the record label is required by law to take a certain percentage out of the touring income made by an artist. Even though the numbers are not always the same there is a general understanding about the keys to the contract. According to Pierson there are three general keys to a 360 Deal contract; the first key indicated is what the revenue sources are. Another key is which costs will come off the top in calculating the label’s participation. The third key is for how long the label’s participation in the artist’s career
In Pierson’s article it is discussed how this major decline in record sales has started as early as 2000, along with many failed investments of trying to launch an artist. Pierson says, “The anti-360 advocates will argue the advances, resources, and ability to deliver success and results are also diminished in the downsized recorded music companies of today and in an age when the pie for all musicians may be smaller; thus, it is unfair for the labels to now demand a greater share, especially in activities where they may offer little expertise or resources,” (Pierson 1). Both sides of the 360 Deal argument come to the similar understanding that the music industry is not what it used to be when the business was more lucrative, and today companies are trying hard to gain every dollar …show more content…
For example, it is not always the case that the record label is required by law to take a certain percentage out of the touring income made by an artist. Even though the numbers are not always the same there is a general understanding about the keys to the contract. According to Pierson there are three general keys to a 360 Deal contract; the first key indicated is what the revenue sources are. Another key is which costs will come off the top in calculating the label’s participation. The third key is for how long the label’s participation in the artist’s career