If you’re somewhat familiar with the music industry, then you’re probably aware of the popular 360 record deal. You know the one, right? You don’t? Ok, so: a 360 deal essentially means that record labels take a cut out of each and every aspect of your career: recording, publishing, performing, et cetera. Up to speed? Ok, good.
This week, major labels banded together to unveil a revolutionary new type of record deal: the 720 deal. It follows the same basic principles as the 360 deal, but with one groundbreaking twist: record labels are now also allowed to take a cut out of the incomes of family members of signed musicians. You read that right.
Early estimates suggest that labels will be entitled to at least 25% of a family member’s income, as well as 75% of the artist’s own earnings. Because of this, labels have also shifted towards signing bigger groups. 2023 is being billed as “the year of the big band”, according to one executive.
Record labels set to profit from this unique new deal are set to face backlash from artists, but who really cares? Money is money, right?