Why The Beef With 360 Deals?

[JQ Legend]

So, tell me how does a hip-hop label (labels in general) make revenue from an artist now? So, what about people who seek out loans and investors to start a business, research, etc? In essence, it is the same thing. But please answer my question.

In ANY other business situation, when a loan is given, the person being given the loan has 100% control of where the loan money goes, and is responsible for paying the loan back with interest

Any extra money beyond that belongs to the person who took out the loan

That is not the way a 360 deal works, or any other record deal for that matter

 

[CodeBlaMeVi]

True story

360 deals would become obsolete if artists refused to sign them

A lot of this is on the fans too, if fans were willing to actually spend money (if they have it) to support artists they like by buying their music, artists wouldn't need to sign deals period

It also falls on radio as well, labels pay radio to basically have a monopoly on them to where you cant get your shyt played on radio unless you're on a major, or an independent with money to pay

Labels are screwing artists but so are radio stations and in a lot of ways, fans

If fans didn't stop buying music, 360 deals would not exist

This, too, and I mentioned radio and read an article about how in spite of the changes in the music industry, commercial radio remain relatively unchanged with major labels instilling constant cash flow to them for playing their shyt nonstop.

 

[CodeBlaMeVi]

In ANY other business situation, when a loan is given, the person being given the loan has 100% control of where the loan money goes, and is responsible for paying the loan back with interest

Any extra money beyond that belongs to the person who took out the loan

That is not the way a 360 deal works, or any other record deal for that matter

But may you answer my initial question?

 

[CodeBlaMeVi]

In ANY other business situation, when a loan is given, the person being given the loan has 100% control of where the loan money goes, and is responsible for paying the loan back with interest

Any extra money beyond that belongs to the person who took out the loan

That is not the way a 360 deal works, or any other record deal for that matter

You're right about the loan but R&D at firms operate like 360 deals, though. Anything researched or found on their dime and time belongs to the firm.

 

[scuba]

No, you're right so I am asking you from the vantage point, objectively, of a label how do you money? Negating the essence of a 360 deal.

Honestly? Probably get them to sign deals where I get a cut of their other revenue streams. LOL.

Aside from that realistically, I think I just stop attempting to put big budgets behind artists. I can still make money if I don't spend a lot. Stop focusing on the expensive proposition of making 1 huge stars who generate 100 millions. Instead focus on making 10000 small acts who generate 10000 For me...

Everyone looks at the success of luxury goods like say Gucci, Louis Vuitton, Versace... Walmart makes much more money going after the other end of market...

 

[CodeBlaMeVi]

Honestly? Probably get them to sign deals where I get a cut of their other revenue streams. LOL.

Aside from that realistically, I think I just stop attempting to put big budgets behind artists. I can still make money if I don't spend a lot. Stop focusing on the expensive proposition of making 1 huge stars who generate 100 millions. Instead focus on making 10000 small acts who generate 10000 For me...

Everyone looks at the success of luxury goods like say Gucci, Louis Vuitton, Versace... Walmart makes much more money going after the other end of market...

That's all I was I trying to get out of you. The Walmart analogy is dead-on on what I am doing with my label. Just releasing singles with various artists and an occasional EP. Work with cats and gals that are grinding and performing. I get a small cut of their show money (10 percent) for using a record I wrote and/or produce and the online distribution revenue of the record I cut with them. Plus, joint rights to use their name, pictures and likeness for merchandising if they catch steam.

 

[JQ Legend]

If a record label is responsible for taking u from no show money to some show money I can see the argument that they are not wrong to ask for some

But the same argument can be made in reverse, why weren't labels asking for show money before?

Or movie/endorsement money before?

It just comes off as sneaky and conniving

It's flat out taking advantage of the fact someone has talent with no money to promote it

I get why labels want to make money I just dont get why the artists who generate such money have to get screwed in the process

If u talkin bout a label taking 10% of everything, that's reasonable but when u talkin bout them taking 50% or better that's fukkin ridiculous

Artists need to realize that artists (in general) have more power than labels (in general)

Maybe an individual artist doesn't but if all artists got together and refused to sign to fukked up deals, labels would have no choice but to modify the deals

Labels cannot make money if they have no artists signed to them

And if an artist is gonna be broke when it's all said and done, they're better off just releasing their music for free anyway

 

[CodeBlaMeVi]

If a record label is responsible for taking u from no show money to some show money I can see the argument that they are not wrong to ask for some

But the same argument can be made in reverse, why weren't labels asking for show money before?

Or movie/endorsement money before?

It just comes off as sneaky and conniving

It's flat out taking advantage of the fact someone has talent with no money to promote it

I get why labels want to make money I just dont get why the artists who generate such money have to get screwed in the process

If u talkin bout a label taking 10% of everything, that's reasonable but when u talkin bout them taking 50% or better that's fukkin ridiculous

Artists need to realize that artists (in general) have more power than labels (in general)

Maybe an individual artist doesn't but if all artists got together and refused to sign to fukked up deals, labels would have no choice but to modify the deals

Labels cannot make money if they have no artists signed to them

And if an artist is gonna be broke when it's all said and done, they're better off just releasing their music for free anyway

Replying to the bold text. It was so much money in record sales and licensing fees back then and the labels bargaining chip was "hey, we're going to keep all the moola from the sales and licensing and in turn we'll make said artist a star and they get their money from touring, doing shows and getting endorsement deals." That's why. Obviously, things have changed and they're adjusting.

If someone is giving away 50% of anything then they are a sucker and deserves to get fukked.

 

[OnlyInCalifornia]

Because everyone wants to pretend like they know the industry well, each rappers situation, and know about contracts they never read?

 

[Average Coli Poster]

Labels gotta eat. How u expect somebody to give you millions of dollars. And you never repaying that back? Jus cuz they love your music?

fukk is this Disneyland?

 

[Buckeye Fever]

My main gripe is they get a percentage of everything u do. Even if u make a guest appearance on a tv show. They get a portion of your concert money as well, which is ridiculous.

 

[NotaPAWG]

My main gripe is they get a percentage of everything u do. Even if u make a guest appearance on a tv show. They get a portion of your concert money as well, which is ridiculous.

Do they get a percentage out of merch, as well? Or endorsements?

 

[Buckeye Fever]

Do they get a percentage out of merch, as well? Or endorsements?

Yep. All of it.

If Nicki signed a 360, her label get a portion of all the shyt she does, including her season as a judge on idol.

 

[JQ Legend]

Labels gotta eat. How u expect somebody to give you millions of dollars. And you never repaying that back? Jus cuz they love your music?

fukk is this Disneyland?

It's not about not paying back what they gave, it's the fact that artists make millions for a label and get crumbs already as it is

For labels to get a piece of everything else is overkill

I definitely think labels should get paid more than the artist tho, since they are taking the financial risk

But the artist deserves to eat as well especially if their album is a success

 

[NotaPAWG]

Yep. All of it.

If Nicki signed a 360, her label get a portion of all the shyt she does, including her season as a judge on idol.

Wow. Thats bullshyt.