The 360 deal and the 'new' music industry
In the last few years the so-called ‘360 deal’, in which record labels receive a portion of income from revenue streams such as merchandising and publishing, have become increasingly common in the recording industry. However, the most publicised 360 deals have been made not by labels but by Live Nation, the world’s largest live music promoter, and some have argued that the emergence of the 360 deal reflects a shift in the balance of power within the music industry. This article provides an overview of 360 deals, discussing their emergence and overall structure as well as arguments for and against the 360 approach. It examines the broader implications of the 360 deal, concluding that the current situation of the major labels may not be quite as bad as is commonly perceived, and that the 360 approach may help them manage the challenges that they have faced in the last decade.
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