In recent news Lil Yachty is setting the internet ablaze with his response to Joe Budden's question on whether or not he was in a 360 deal.
As you saw for your self he openly stated he did not know if he was. While some might try to highlight his lack of knowledge about whether or not he was in a 360 deal, we want to thank Lil Yachty for his honesty. Yachty went on to try and clarify his comments stating:
"Y’all gotta understand just because I didn’t know the term name "360 Deal" doesn’t mean I don’t know what kind of deal I have," he tweeted. “I only wasn’t aware of the term “360 Deal". I own all my publishing an I've recouped my deal. For those so pressed. chill. I’m good.”
The truth of the matter is that a lot of up and coming artists are not aware of those type of contract logistics. So we found this to be the perfect time to do a video on "What exactly is a 360 deal?"
According to Donald Passman's book, All You Need To Know About The Music Business, the way 360 deals work is that “Most companies get from 10% to 35% of the artist’s net income from non-record sources, with the majority of deals falling in the 15% to 30% range.”
These non-record sources can consist of touring, merchandising, publishing from songwriting, endorsement deals, and the list goes on and on. Pretty much anything you can think of that an artist can make money from, some labels are trying to cash in on. The percentage that record labels receive from these revenue streams can vastly differ from one stream to the next.
360 deals undoubtedly benefit the labels, arguing that their investment in the artist is what propelled the artist to be in a position to solicit lucrative opportunities. Labels feel they should be able to cash in on this investment as response to the decline in records sales.
We all have this man to thank for the 360 phenomenon, Jeff Hanson
While discussing the role he played in breaking the band Paramore during an interview with Hitquarters.com, Hanson stated, "I was actually the person who fought the band to make the first 360 deal happen, which I think is the biggest reason the band is where they are today. How else would a label have been patient enough to put the band on three straight Warped tours and down-streamed the band to Fuel By Ramen all while losing millions of dollars?" Hanson went on to say "Interestingly enough, it was Jim [Zumwalt], Kent [Marcus], Jim's partner Orville, and myself that created the first ever new artist 360 deal. We actually wrote the deal and submitted it to Atlantic, not the other way around."
Since being signed, Paramore has gone on to achieve immense success but at what some might consider an extreme cost.
But what do you guys think? Is it fair for labels to ask for a 360 deal in exchange for what they provide for new artist? Let us know in the comment section below and be sure to subscribe for more videos.