Major Labels Rediscover Artist Development Via 360 Deals

Jeff Leeds discusses the multiple rights or 360 deals that appear to be the last of the major label music industry's possibilities for sustaining innovation.  Read The Innovator's Dilemma to see what comes next.

It was obvious that the move to 360 deals, in which labels basically attempt to profit from everything a musician does, signaled the emergence of a much harsher bargaining atmosphere for musicians hoping to sign with major labels just as the major labels will see a much harsher environment for bargaining with major stars.

But I had no idea major labels are claiming with a straight face to suddenly be committed to artist development.  Hope whoever's bargaining with these people gets that in writing.

Point of interest: Maino's deal with Atlantic is described as a "360-style" contract.

On a Related Note:
When I first started to think through the implications of Madonna's Live Nation deal and the related move to 360 deals on the part of major labels, I focused in passing on the possibility that major labels could take more services in-house as they attempt to maximize profits.  However it's probably more likely that, as major labels seek to maximize revenue streams, more rather than less outsourcing will result and create new opportunities for small firms.

Update:
Lefsetz [via Brown] goes on a rant inspired by 360 deals, for example:

If you’re contemplating a major label, and your success is not based on terrestrial radio play, if you don’t make pop music, YOU’RE A F*CKING IDIOT!

Have you been to the major label’s office recently? There’s nobody working there! They want more of YOUR money for doing less work. You’ve still got to hire a manager, an agent, pay them, and also pay the label which is doing no more than before, it’s just that it can’t make as much money because the landscape changed.

Comments

[Street Knowledge TV]

what up Clyde, good article on 360 deals.
Don't know if you saw but i have a recent interview with maino talking about his deal and how it was being run through Grand Hustle with the king himself TI.
Check it out he explains it in pretty good detail!!
Majesty

[Clyde Smith]

Well, he doesn't really explain the deal itself but he does seem really happy about it and about his relationship with T.I.