What is a 360 deal and why is it controversial?
Free to read. Ask your own question — 2 free, no account needed.
Ask a question →AI starter answer — please verify with real-world experience. Awaiting trusted contributor review.
A 360 deal is a business relationship where a record label receives a percentage of all an artist's income streams, not just record sales. Unlike traditional deals focused on phonograms, a 360 deal grants the label a 'piece of the pie' from touring, merchandise, endorsements, and music publishing. It is controversial because it significantly reduces an artist's ability to remain profitable, as the label can recoup losses from one area (like a low-selling album) using profits from another (like a successful tour).
- 1.Review the scope of the 'ancillary revenue' clauses to see if they include touring, merchandise, publishing, and endorsements.
- 2.Calculate the total recoupable debt, as 360 deals often allow labels to pay off recording losses using your concert or merch earnings.
- 3.Consult a specialized music attorney to negotiate 'carve-outs' for businesses you owned or operated prior to signing.
- ×Cross-collateralization allows labels to use your merch money to pay back your recording advance.
- ×Passive vs. Active participation: Ensure the label is actually providing services for the extra money they take.
- ×Double-dipping: Labels may try to take a cut of publishing even if they aren't your publisher.
Always try to negotiate a 'first refusal' clause rather than a mandatory 360. This allows you to offer the label a chance to partner on other ventures only if you choose to, rather than giving them an automatic right to your income.
Based on AI training data — may not reflect current information.
Community Discussion(0)
Set the record straight
Speak from experience. Specifics > opinions. Other working pros may flag it for a correction — that's the point.
Become a trusted contributor
Working engineer, producer, attorney, or tour manager? Apply for a Verified Contributor badge. Your corrections carry weight, your answers get prioritized, and your profile shows up next to the AI summary.