In any and every industry, there are things, which go bump in the day and the night. Sometimes these very things are good in nature, and wish to do nothing more than help us along our way, in the journey through process on our way to the long standing goal line that awaits us, at the end of our long journey. Then sometimes, there are things out there, in which wish us nothing but harm, these very ideas, practices, and processes are created in the minds of people who literally seek the destruction of one’s own self and dreams in less than a blink of an eye. Today I bring you one of the not so popular, well wishing anyone ideas from the recesses of the music industry.
“The 360’ Deal”
In the world of the entertainment industry, lays a facet of the industry that we all enjoy. This facet is known as the Music Industry. The music industry is a continually evolving entity. As one generation of music and its fans goes away another one comes in, and there are people in the industry that every so often try and predict trends, analyze music buyer patterns, and overall, try to create a more music buyer friendly consumer market. Within the industry though, there are those who wish nothing more than to take advantage, wherever they can.
Money and Greed are powerful entities that rule the entertainment industry with an iron grip. The music industry is no exception, leading to a yearly economic growth of more than $30 Billion dollars a year. Year after year, for many and numerous reasons, artists, musicians, bands, and so on bring their views of the world to all of us in different forms. Whether it’s a club banging Hip/Hop song to make every one feel good, and shake their booties, all the way down to the next pop smash hit to make an unknown star an overnight sensation and take the world by storm, including everything and everyone in this industry in between.
With that said the Music Industry, specifically Record Labels, have found a new way to capitalize on the ideas and creations of many to utilize them to their own greed laced ways, and try to drawn in even more financially into their already overstuffed, overloaded pockets. “The 360’ Deal.”
The “360’ Deal” started by Conglomerate Recording Giant “LiveNation” in 2007 & 2008 only benefits the Record Label that engages in this type of contract. Yet many artists are unaware of the control they are giving up over their creations, and the damage they will inflict on their very own souls.
The “360’ Deal”, is simple, yet deadly in its design to anyone signed to it as an artist within the music industry. I will lay it out here very simple. In the “360’ Deal” an Artist, Band, Solo Artist, Musician, signs away almost all of their rights over their projects. The record label issues a contract that you sign, with lots of dollar signs usually, and in turn this is what they receive from you. They will take a cut, or portion, of everything you make financially. Everything from the Music Videos you cut for singles, Performances you do within and around the world, Online sales of any albums and Merchandise sales, plus any Promotions that you may have had a hand in developing for your own campaign, so on and so forth. They have this power over you for 10 years! You cannot break this contract. Part of what you make will essentially be yours in this time period and the other part will not. You will also have limited creative input in your own projects. All decisions will be made above your head, with or without your say.
So let me give you the math break down of this deal. Let’s say that you work for a record label, and you make $11 Million Dollars in sales for them. Let’s also say that they advanced you $1 Million Dollars up front.
Now the $1 Million Advance Upfront has to cover costs that you as the Recording Artist incur. The first $500,000 is the average price you will use to record your album. You then have the other $500,000 left over. Well let’s say you pay your manager 20% Commission for the year, so he or she will see $100,000 Dollars in payment for that year. Of course you will have lawyers, and they are usually paid somewhere in the range of $25,000 Dollars per year for their services. Yes folks, even when you are signed to a major label, you usually will almost always incur the costs associated with these individuals, not the label, they are on your team, so it is your responsibility.
So now you have $375,000 Dollars left to split between 4 people after all of these costs in the beginning. After personal income tax, yes folks, you have to pay tax on the money you earn, as this is seen as income by the I.R.S., you will then have $243,750 Dollars to split between 4 people. If you take the $243,750 Dollars and divide this between an average of 4 people that are usually in a band, each member in the band will take home a grand total of $60,937 Dollars.
Congratulations everyone, and for all of your hard work and sacrifice. You may have made your record label $11 Million Dollars, and all you will see of it will be $60,937 Dollars for the year. Not to mention the personal income tax that you and or each band member will be personally taxed each year on that principle amount.
The math starts to get a bit complicated and convoluted when you really get into it but, it comes out to a range of around $23.40 you will be paid from your major record label per every $1000 Dollars you make for them in the course of this “360’ Deal.” Sounds like a rather unique idea, if you’re on the inside. If you are on the outside, well good luck as you signed this deal and you are locked into it for 10 years. Now I know what you are all probably saying, I will just go to court and have them help me to break the contract. GOOD LUCK WITH THAT! The costs associated with trying to break this ”360’ Deal” exceed $100 Million Dollars on an average. Do any of you have that kind of money???
Be aware of this and many other things that go bump in the night in the industry of Music and the Entertainment Industry. It’s all up to you!
- JB Brock
