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									360 deal
From Wikipedia, the free encyclopedia

In the music industry, a 360 deal is a business relationship between an artist and a music industry company. The company
agrees to provide financial support for the artist, including direct advances as well as funds for marketing, promotion and
touring. The artist agrees to give the company a percentage of all of their income, including sales of recorded music, live
performances and any other income.
The business arrangement is an alternative to the traditional recording contract. During the first decade of the 21st century,
revenues from recorded music fell dramatically and the profit margins traditionally associated with the record industry
disappeared. The 360 deal reflects the fact that much of a musician's income now comes from sources other than recorded
music, such as live performance and merchandise.

History
According to Jeff Hanson, head of Silent Majority Group, the first new artist 360° deal was created by Hanson along with
attorneys Jim Zumwalt and Kent Marcus, and Jim's partner Orville. [1] It was submitted to Atlantic Records for the rock band
Paramore while Hanson, Marcus and Zumwalt were employed by the label. Hanson has said there was strong resistance to
the deal by both label and band and that he had to fight to make it happen, but believes his efforts were vindicated by the
band's subsequent success, saying: "How else would a label have been patient enough to put the band on three straight
Warped Tours and down-streamed the band to Fueled By Ramen all while losing millions of dollars?"[1]
360 deals have been made by traditional record companies, as in Robbie Williams's pioneering deal with EMI in 2002. [2]
They have also been made between artists and promoters, as with Live Nation's 2007 deal with Madonna [3] and 2008 deal
with Jay-Z.[4]

Criticism
360° deals have attracted criticism from various quarters. Panos Panay, CEO of online music platform Sonicbids, has said:

       "If you want to find out the future of 360° deals, look at Motown in the late 60s. Motown was the pioneer of a
       360° deal ... They owned your likeness, your touring, publishing, record royalties, told you what to wear, told you
       how to walk … It made for great entertainment but if you look at every one of those artists, what happened?
       Sooner or later they said, 'I’m not going to go on the road for 200 shows because you tell me so. I’m an artist!
       I’m a creative person!' Eventually all these artists left ... There’s two things we know about creativity: you can’t
       force it and you can’t really control it."[5]


References
   1. ^ a b "Interview with Jeff Hanson" . HitQuarters. September    3. ^ Associated Press (Oct . 16, 2007). "Madonna announces
      20, 2010. Archived from the original on November 3, 2010.         huge Live Nation deal" .
      Retrieved Oct 4, 2010.                                         4. ^ Leeds, Jeff (April 3, 2008). "In Rapper's $150 Million Deal,
   2. ^ Rosso, Wayne (January 16, 2009). "Perspective:                  New Model for Ailing Business" . The New York Times.
      Recording industry should brace for more bad news" .           5. ^ "Interview With Panos Panay" . HitQuarters. Jul 5, 2010.
      Cnet. Retrieved September 14, 2009.                               Retrieved May 9, 2011.



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