360 Deals

Just read the big New York Times article about record labels and their 360-degree deals with bands. It is interesting to see where the music industry as a whole is heading.

The first time I heard about deals of this sort was with Korn and their asinine deal a few years ago. That one made sense as I asked myself, "Why would a band do that?" Give up a piece of something they have no idea what may one day be... But for Korn? That made sense. They were on their way out... they were most likely not about to be bangin' out another big hit record or two that would have made them the kind of money they signed for... and who knows how long the baggy, strap-laden pants-wearing, fake-dreaded suburban hot-topic shoppers were going to keep dropping $20-$50 to see their smelly asses.... so sure... yes that made sense. It also makes sense for a band like Paramore who are building their identities on the road; much like Fall Out Boy and My Chemical Romance did for years before they finally "Made it." And good for Fueled By Ramen for helping and nurturing them and giving them tour support no matter what. I can definitely name a few labels that can’t offer that for bands with no proven track record. And it even makes sense for Madonna to do it too... Because as we all know, she may not be selling as many CDs as she used to... but she still tours and BANKS off of those tours... ok, so maybe it doesn’t make TOTAL sense for her to do it... she does make the majority of her music bucks off of touring... so she should have kept that in house and to herself.... if she was dealing on the scale of what Paramore got, but she got $120 million. The interesting thing about her deal, though, is that it wasn’t a label that signed her. It was Live Nation, which for Madonna makes some sense as she gains the most over her revenue these days off of touring. That deal will take the guesswork out of much of those plans as well as ensure, no matter what, she will walk away with pockets lined. It is an exciting time, as people are finally beginning to figure out GOOD ways to keep the music industry alive as well as help their artists. It is thrilling to see Artist Development become a priority once again, as labels seemed to have figured out that they need those artists to keep them going... not just over-priced, alcohol-fueled dinners with other managers, third party investors and radio programmers. I can’t wait for the day when artists are no longer as disposable as they seem to have been for so long. With plans like these 360 degree deals as well as new sources of revenue like the expansion and exploitation of the mobile content biz.... I just hope that it will be enough to make a solid impact…
The RIAA going after people may seem like a logical way to make an example of individuals in hopes to scare illegal downloaders straight, but everyone I know that heard about that first case going to court laughed it off with a "That would never happen to me" nonchalance. Hopefully the new extras and goodies that come with the sale of a CD breeds new physical property fans because those of us that love the smell of vinyl and holding the album artwork in our hands as we first pop in a new album and read along with the lyrics as we check production notes are few and far between and becoming less so every day.