Industry Exposure: 360 Deals
“We used to look at jam bands as bands that absolutely we shouldn’t sign,Now all of a sudden I’m saying: ‘Guys, you absolutely must find the next hottest jam band. I need the next Phish. Urgently.’”
Craig Kallman: Chairman & CEO of Atlantic Records.
This type of mentality is what is stifling creativity and truly talented artists in the industry. To these guys, its all about how much money they can make from you.
The 360 deal is the worst type of contract I’ve ever read.
What’s worse is that the 360 deal is becoming the norm in the music industry, not just hip hop.
The 360 Deal defined:
Hey guys, records aren’t selling that well, we blamed it on illegal mixtapes, we fought against the file sharing sites, but people still aren’t buying records. We keep losing money, what should we do?
I know! Lets make any artist who signs to our label, sign a contract where we can take a percentage of their merchandise, tour sales, film/tv shows,vanity label, publishing and endorsements. Lets really rape their pockets!
They believe that because they’re spending money on marketing, recording,promotion etc, they should profit from every angle of the artist.Seems fair?
No! Record labels are supposed to build and develop artists, help their recording, promotion, marketing and make sure records of their artists are always available. It’s a backwards rule because the artist doesn’t receive a cent until the label has recouped the money they put into them. This makes even less sense when you consider the majority of artists who became superstars in the last ten years, had to do so from selling records out of their car or the mixtape circuit. Some even used the internet to build their fanbase before they were signed by a label.
Interscope are trying to make 50 Cent sign a 360 Deal. 50 isn’t stupid though. The Game on the other hand….
Allegedly,Lupe Fiasco was told if he didn’t renegotiate to a 360 deal, he would be shelved until his contract ran out.
Atlantic still own Saigon’s “The Greatest Story Never Told”.
Gucci Mane would have been a lot richer, if he didn’t sign a 360 deal. His album did well, considering the current climate. He created his own buzz, not Atlantic (who had no intention to releasing his album). They wouldn’t even get him a lawyer for his court cases.
A rapper from Atlanta named Donnis, recently signed to Atlantic. Have fun…..