Image via The Virginmarys
Due to the ever-changing nature of the music industry, record labels have been making quite a few changes to figure out how to stay in business. As we all know by now, record sales have been diminishing, so labels have been “forced” to find additional ways to make (and take) more from artists in order to have a shot at making a profit.
The latest trend in recording contracts is the 360 deal, in which any income that an artist may earn while under contract – not just record sales – can be collected by the label. Anything but a 360 deal of some type for a new artist today is extremely rare, because the only somewhat reliable revenue components for artists today are touring and merch – and the label needs to get some piece of that just to cover costs and make the gamble safer.