Quick Definition
A 360 Deal (or "multiple rights deal") is a recording contract where the record label participates in all of the artist's revenue streams, not just recorded music sales. This typically includes touring, merchandise, endorsements, and publishing.
360 Deals Explained
As physical album sales declined in the 2000s, labels sought new ways to monetize artists. They argued that since they invest millions to build the artist's brand (which drives ticket and merch sales), they deserve a cut of those income streams.
In a 360 deal, a label might take 10-25% of net income from non-recording sources. In exchange, they (theoretically) commit to providing broader support, such as tour marketing and merchandise fulfillment.
Why It Matters
360 deals are now the industry standard for major label signings. For artists, this means giving up a slice of their most profitable income (touring). However, for a new artist needing massive capital to break through, a partner incentivized to help with *everything* can be valuable.
Pros and Cons
**Pros:** More up-front investment, aligned incentives (label wants you to sell tickets). **Cons:** You keep less money from your hard work on the road; potential conflicts of interest.
Related Terms
See also: Music Advance, Recoupment, Royalties.
Data-Driven Decisions with Soundcharts
Understanding your market value via data (social growth, streaming velocity) gives you leverage to negotiate better terms—possibly avoiding a 360 deal or minimizing the percentages.