THE BLOGRONAUT DISCUSSES 360 DEALS
Tuesday, November 3rd, 2009 at 2:00pm by Sacha Dunable
I understand that the music industry as we’ve known it is in somewhat of a bind. The ease of “illegal” downloading coupled with a crappy economy has cut off much of the flow of income a record label is built to generate. In this position, any sensible business would find a way to adapt in order to survive.
Last week I read about a certain metal label trying out something called a 360 deal, where instead of mainly collecting revenue from record sales or other intellectual property rights (publishing, licensing, etc.), the record label takes an agreed-upon cut of merchandise, concert ticket sales, and I suppose just about anything else having to do with the band. Actually I’m sure deals like this already existed, but this label got even more “WTF” with it and announced they would be giving this new band’s album out as a free download. I honestly think this is a great idea. Giving away the music for free since it holds little value to consumers, then sending the band on tour and collecting a decent percentage off nightly guarantees and t-shirt sales since people still pay full price for those – going where the money is. Sure, it’s a business.
What confuses me is how any band would be ok with this. They signed to a record label who isn’t actually putting out or distributing a record. They’re promoting intangible recorded material so that there’s a reason for the band to tour and sell stuff for them, while the band makes even less money on the things they would have been sustaining themselves on in an old school record deal. So, why do you need a record label then?
