Major Labels Need To Rethink The 360 Deal

The music industry needs a rethink of the new business model of the `360 Deal` if they ever want it to work, according to speakers at the Big Sound music conference.

The 360 Deal is an idea based on a record company taking a percentage of all revenue streams of an artist, such as tickets, merchandise and publishing. But, as the speakers agree, it is not that simple.

Eleven Records founder John Watson, whose roster includes Silverchair and Missy Higgins, says that until the label has its own merch company or publishing company or ticketing company, then it is not in the interests of an artist to enter into a 360 deal.

“There are no rights without responsibility,” he said. “You have to deliver what you promise.”

Dew Process founder Paul Piticco, who has Powderfinger and The Living End on his roster concurs. “There is better value in getting bread from a baker and meat from a butcher.” he stated. “You won’t get the best results if you give all the rights to one person.”

Michael Parisi, Managing Director of Mushroom Records and Head of A&R for Warner Music said, “If I was a young band right now, I would be every concerned where the majors are going. But there are artists who will take the cheque book every time.”

Parisi can see the sea-change occurring in the industry. “We will start to see the word ‘partnership’ more in deals with artists,” he said.

Piticco also sees the change happening but isn’t prepared to predict the outcome. “No-one can say what the format of the industry will be so for my company it is about creating options for the artist,” he said. “An artist doesn’t need to give away his merch so we have options and solutions.”

While the future was blurry, the past was crystal clear. “The major record company was the major force,” John Watson said. “The record company co-owned the recording rights and the record company screwed the artist and then the artist was screwing everyone else so everyone was happy.”

“Young artists aren’t interested in record deals anyone,” he said. “”It might just be a better deal to sign to a publishing deal with someone who can help you develop your career. It is not about selling plastic. It is about building a touring career”.

The Big Sound music industry summit and showcase attracted over 300 delegates from the international music industry. The conference, presented by Q Music, happened from September 10-12 in Brisbane.