To battle this, record companies are struggling to find new revenue streams. The 360
deal, also known as a multiple rights deal, is becoming popular, especially with larger
record companies. This arrangement allows the record company to receive a percentage
of all of a band’s or individual artist’s earnings. That means concerts ticket sales, mer-
chandise, endorsements, etc. Everything. In return the label agrees to promote the artist
for a longer period of time and work to develop new opportunities for the artist. Some are
seeking to exploit, or further exploit, licensing deals. But, any way you cut it, the tradi-
tional label model is in deep trouble.
What Does This Mean for the Musician?
Ironically, the doom and gloom hovering around the record companies spells opportunity
for the smart and savvy musician. Rather than being at the mercy of a faceless corpora-
tion, questionable A&R executives, bad contracts and paltry royalties, artists are taking
control of their work and the direction of their career.
Artists now have the ability to open a one-on-one dialogue with their fans via social
media and various online tools. They can learn what their fans like and want. That’s
pretty valuable information and sure beats guessing.
Collaboration tools online abound. Artists no longer need to work in a vacuum. These
tools, such as SoundCloud and Indaba, allow musicians and even fans to share thoughts
and ideas, tracks and more.
Many bands are bypassing the record companies all together, opting to promote di-
rectly to their fans. In the past, this would have been an impossible undertaking. Twenty-
first Century technology changed that. Bands and solo artists are, more and more, becom-