In the music industry, a 360 deal (from 360° deal) is a business relationship between an artist and a music company. The company agrees to provide financial and other support for the artist, including direct advances as well as support in marketing, promotion, touring and other areas. In return, the artist agrees to give the company a percentage of an increased number of their revenue streams, often including everything from digital and online streaming and live performance to merchandise sales, endorsement deals, and songwriting royalties.[1]
Developed within the last 20 years (in the 21st century), the business arrangement is an alternative to the traditional recording contract, where the artist usually has control of personal revenue streams (outside the core business relationship around the sharing of revenues in music production). In a 360 deal, a company typically agrees to support an artist upfront in a greater amount than covered by a traditional recording contract, on the condition of receiving a percentage of revenue from the traditional areas as well as additional ones.[2]
At the turn of the century, revenues from recorded music fell dramatically, and the profit margins traditionally associated with the record industry disappeared. The 360 deal, which began to show up in the early 2000s, reflects an attempt by the industry to tap into what traditionally had been the artists' exclusive domain of moneymaking opportunities such as shows, sponsorship deals, or merchandising.[2]
^Neo, Jesse. "Music 101: 360 Record Deal Explained (2020 UPDATED)", Retrieved on 2 August 2020.
^ abTkacik, Maureen; Brown, Krista (December 21, 2022). "Ticketmaster's Dark History: A 40-year saga of kickbacks, threats, political maneuvering, and the humiliation of Pearl Jam". The American Prospect. Retrieved January 28, 2023.
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