360 deal: what it is, what a label takes, and what to ask before you sign
A 360 deal is a record contract where the label also takes a share of your income outside recorded music, such as touring, merchandise and sometimes publishing, in return for a bigger advance. Here is how the cut works and what to check before you sign.
Want this done for you? See our music promotion service. Related reading: Label services vs distribution · How to get signed · How to start a record label. Or browse all music guides.
Key takeaways
- A 360 deal adds a share of your other income, such as live shows, merchandise and sometimes publishing, to a normal record contract.
- A 2021 report for the UK Intellectual Property Office puts the label's cut of those other streams at between 10% and 50%, in return for higher advances.
- Ask whether the label's interest in each stream is active (it runs that business) or passive (it only takes a percentage), and whether the streams are cross-collateralised.
- Blue Leopard Media is not a label. It sells a fixed-price YouTube campaign and a feature for one release.
The short answer
A 360 deal is a record contract in which the label takes a share of more of your income than record sales and streams. A 2021 report for the UK Intellectual Property Office (IPO) says these deals can carry the same royalty and recoupment terms as an exclusive record deal, but in exchange for higher advances the label expects between 10% and 50% of some other streams, such as merchandise, live income and possibly publishing. If you would rather keep every stream and pay once for promotion, our music marketing runs a YouTube campaign and a feature for a single release.
How a 360 deal works
Wikipedia describes the artist giving the company a percentage of more revenue streams, from live shows to merchandise, endorsements and songwriting royalties. The deals began to appear in the early 2000s, as record income fell.
Not every multiple rights deal covers everything. A Hypebot guide by a music lawyer explains that a 180 degree deal may cover record sales and publishing, and a 270 degree deal adds touring. Read the contract for the exact list.
Active or passive
Next, find how the label holds each stream. With a passive interest it only collects its percentage, and you can sign your own merchandise or publishing deal. A Cornell Journal of Law and Public Policy article warns that an active role in those streams means giving up substantial control, and notes there are no standard 360 terms. The Hypebot guide adds that an active interest can require you to use the label's own merchandise or publishing company.
Then recoupment. Advances are usually recouped from your royalties before you are paid more, and the IPO report says tour support and half of video costs can be recouped too. If the streams are cross-collateralised, money the label collects from touring or merchandise can repay an advance spent on recording. The Hypebot guide suggests asking that streams not be cross-collateralised, though most labels refuse.
What to ask before you sign
This is general information, not legal advice. Take these questions to a music lawyer, alongside the draft contract:
- Which streams? Every income type the label shares in, and whether its share is of gross or net income.
- What percentage, per stream? Push for less where the label is active, since it may also earn as the merchandise or publishing company.
- Active or passive? For each stream, can you choose your own partner?
- Cross-collateralised? Ask that touring and merchandise income is not used to recoup recording advances.
- How long? How many albums the term covers, and whether the share of other income ends with it.
- What do you get? The advance, marketing commitment and tour support, in writing.
The IPO report, which covers the UK market, also says 360 deals were common in the early 2000s but have since become rare, so compare any offer with a standard deal, a distribution deal or label services.
How the options compare
How the three deal types and a paid campaign compare:
| Exclusive record deal | 360 deal | Distribution deal | Blue Leopard Media | |
|---|---|---|---|---|
| What you give | A royalty of about 15% to 20% is common; advances and recording costs are recouped first | Similar royalty, plus 10% to 50% of some other streams | A fee of about 15% to 20%; you keep 80% to 85% | One payment per release, from $249 |
| Advance | Usually, recoupable | Higher, recoupable | Usually none | None: you pay for a campaign |
| Term | Set in the contract | Set in the contract | Usually 3 to 5 years | One release |
| What you get | Funding, recording, marketing | Funding plus help on touring and merchandise | Your music delivered to stores and services | A YouTube campaign with guaranteed Google Ads views and a feature with your digital cover |
| Best for | Artists who want a label to fund and run releases | Artists who need large upfront money and full-service support | Artists who want ownership and control | Artists who want one release seen and written about, alongside any deal |
Figures for the three deal types come from page 65 of the IPO report and vary contract by contract. Whatever you sign, send us your release date and video link, and we will reply with a plan for that release.
Sources
- UK Intellectual Property Office: Music creators' earnings in the digital era (Sept 2021), page 65
- Wikipedia: 360 deal
- Cornell Journal of Law and Public Policy: 360 music contracts, COVID-19, and the future of the music industry (7 May 2021)
- Hypebot: 360 agreements, an examination of multiple rights deals, part 1 (12 Jul 2017)
Frequently asked.
What percentage does a label take in a 360 deal?
It varies by contract and by stream. The UK IPO report puts the label's cut of other income, such as merchandise, live income and possibly publishing, at between 10% and 50%, on top of royalty terms similar to an exclusive record deal.
Is a 360 deal bad for artists?
Not always. It can bring a larger advance and help with touring and merchandise. The risks are giving a share of income the label did little to create, losing control where the label is active, and slower payment when streams are cross-collateralised. Have a music lawyer read it.
What is the difference between a 360 deal and a 270 or 180 deal?
The number describes how many income streams the label shares in. A Hypebot guide by a music lawyer describes a 180 degree deal as covering record sales and publishing, and a 270 degree deal as adding touring. The contract wording decides what is actually covered.
Does Blue Leopard Media offer record deals?
No. Blue Leopard Media is not a record label. It sells music marketing: a YouTube campaign with guaranteed Google Ads views and an editorial feature with your own digital cover, from $249 per release.
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A YouTube campaign with guaranteed Google Ads views plus an editorial feature with your own digital cover, from $249 per release.