" 360″ Music Deals Become Mandatory As Labels Prepare For Free Music

360 Music deals give labels their standard cut of CD and digital download sales, but also give them a percentage of event ticket profits, merchandise sales, endorsement deals and anything else that uses the artist’s brand or music.

A year ago they were still seen as controversial and experimental. Labels defended them as justification for investing in an artist in a time of decreasing CD sales.

Today, though, those deals are becoming mandatory. Warner Music Group CEO Edgar Bronfman told the Web 2.0 Summit audience that his label now requires all new artists to sign 360 Deals, and that about a third of their signed artists are under those contracts.

Bronfman argued to a hostile crowd that it doesn’t make sense for labels to pour money into artist development when CD sales, their primary source of revenue, continue to decline (although he did say that digital sales now make up 20% of their revenue). Without other ways to make money from an artist, he said, they wouldn’t continue to promote artists.

Bronfman also said that 360 deals give labels the ability to give away music for promotional purposes to spur event and merchandise sales.

And that, for me, is the key. Bronfman, an outsider to the music world until recently, sees the writing on the wall - music downloads will eventually be free, and will serve as little more than marketing collateral to other revenue streams.

360 deals give labels a place in the new music economy, and there’s nothing wrong with their attempt to keep their businesses alive over the long run. Artists can choose to go with them or not, depending on their own opinion of the benefits. If labels really can bring enough marketing and promotional benefits to the table, artists will take those deals. They may be slaves to the labels, but they have a chance (albeit a very small one) of becoming rich slaves, at least.

Luv Ya Work!!

Pinch Me ...a message from Michael Moore

Wednesday, November 5th, 2008

Friends,

Who among us is not at a loss for words? Tears pour out. Tears of joy. Tears of relief. A stunning, whopping landslide of hope in a time of deep despair.

In a nation that was founded on genocide and then built on the backs of slaves, it was an unexpected moment, shocking in its simplicity: Barack Obama, a good man, a black man, said he would bring change to Washington, and the majority of the country liked that idea. The racists were present throughout the campaign and in the voting booth. But they are no longer the majority, and we will see their flame of hate fizzle out in our lifetime.

There was another important "first" last night. Never before in our history has an avowed anti-war candidate been elected president during a time of war. I hope President-elect Obama remembers that as he considers expanding the war in Afghanistan. The faith we now have will be lost if he forgets the main issue on which he beat his fellow Dems in the primaries and then a great war hero in the general election: The people of America are tired of war. Sick and tired. And their voice was loud and clear yesterday.

It's been an inexcusable 44 years since a Democrat running for president has received even just 51% of the vote. That's because most Americans haven't really liked the Democrats. They see them as rarely having the guts to get the job done or stand up for the working people they say they support. Well, here's their chance. It has been handed to them, via the voting public, in the form of a man who is not a party hack, not a set-for-life Beltway bureaucrat. Will he now become one of them, or will he force them to be more like him? We pray for the latter.

But today we celebrate this triumph of decency over personal attack, of peace over war, of intelligence over a belief that Adam and Eve rode around on dinosaurs just 6,000 years ago. What will it be like to have a smart president? Science, banished for eight years, will return. Imagine supporting our country's greatest minds as they seek to cure illness, discover new forms of energy, and work to save the planet. I know, pinch me.

We may, just possibly, also see a time of refreshing openness, enlightenment and creativity. The arts and the artists will not be seen as the enemy. Perhaps art will be explored in order to discover the greater truths. When FDR was ushered in with his landslide in 1932, what followed was Frank Capra and Preston Sturgis, Woody Guthrie and John Steinbeck, Dorothea Lange and Orson Welles. All week long I have been inundated with media asking me, "gee, Mike, what will you do now that Bush is gone?" Are they kidding? What will it be like to work and create in an environment that nurtures and supports film and the arts, science and invention, and the freedom to be whatever you want to be? Watch a thousand flowers bloom! We've entered a new era, and if I could sum up our collective first thought of this new era, it is this: Anything Is Possible.

An African American has been elected President of the United States! Anything is possible! We can wrestle our economy out of the hands of the reckless rich and return it to the people. Anything is possible! Every citizen can be guaranteed health care. Anything is possible! We can stop melting the polar ice caps. Anything is possible! Those who have committed war crimes will be brought to justice. Anything is possible.

We really don't have much time. There is big work to do. But this is the week for all of us to revel in this great moment. Be humble about it. Do not treat the Republicans in your life the way they have treated you the past eight years. Show them the grace and goodness that Barack Obama exuded throughout the campaign. Though called every name in the book, he refused to lower himself to the gutter and sling the mud back. Can we follow his example? I know, it will be hard.

I want to thank everyone who gave of their time and resources to make this victory happen. It's been a long road, and huge damage has been done to this great country, not to mention to many of you who have lost your jobs, gone bankrupt from medical bills, or suffered through a loved one being shipped off to Iraq. We will now work to repair this damage, and it won't be easy.

But what a way to start! Barack Hussein Obama, the 44th President of the United States. Wow. Seriously, wow.

Yours,
Michael Moore
MichaelMoore.com
MMFlint@aol.com

LUV YA WORK OBAMA!!!!!