With the advent of streaming and direct to consumer outlets for artists, major labels have been forced to compensate for the decline in record sales. This compensation is commonly referred to as the “360 Deal”.  Indicative of its name the 360 deal is all encompassing. Under this contract, recording artists are required to share a percentage of ANY revenue generated. This revenue includes but is not limited to publishing, record sales, merchandising, touring, movie deals, book deals and last but not least endorsement deals.

This new format has been created to make up for the decline in record sales and enable major record labels to stay afloat. In recent years many recording artists have opted to forego signing deals with major labels and rightfully so. As it relates to breaking an artist, major labels no longer have the power they once held. A majority of today’s talent is cultivated and discovered online through social media. With major label budgets being tight, non-existent artist development, smaller budget videos, and very rare 7 figure advances the allure of major labels is utterly non-existent. Record labels simply find the next popular online artist with a following, sign them to a 360 deal, invest and hope their investment pays off.

This leaves the burning question to be asked…why sign to a Major? In today’s climate recording artists generate 90% of their income from touring, endorsements, merchandising, streams and online views.  All of these revenue streams can be tapped into without the help of a major label. Our firm has taken the stance and coined the phrase “Endorsements are the new record deals”.