Warner Music Group Goes All 360
Warner Music Group head Edgar Bronfman Jr. told attendees at last week’s Web 2.0 Summit that all new artist contracts at WMG will be 360 deals. Silicon Valley blog TechCrunch went on to report that 1/3 of the artists currently signed to the label were already working under this kind of comprehensive arrangement which can involve label control of revenue from publishing, web sites, merchandise, touring and all other aspects of the artist’s career.
But many questions about WMG’s 360 plans remain unclear. Is the 1/3 of the roster claim accurate? It seems high for a concept that is at most two years old. And what exactly does a WMG 360 deal mean? From an artist and manager’s perspective, what value is WMG adding that warrants the additional contractural restraints; or has an era of falling sales revenue simply made the 360 deal neccessity?
Most intriguing is how the new Ticketmaster Entertainment figures into WMG’s 360 plan. The label group was heavily invested in the now merged Front Line and has 2 seats on the combined venture’s board. New CEO and mega-manager Irving Azoff has promised much more than just tickets from the new Ticketmaster. How does WMG fit into that plan and what does Bronfman hope to get for his company from the investment?
The (right) justification for 360 deals comes from the idea that the labels are investing in the artists’ career, not just an album, and thus should be able to profit equally on the other aspects of that artists career.
This may have been fair 20 years ago, when labels WERE investing in an artist’s career.
I’d argue none of the majors are investing in CAREERS. They need the hits, they need the immediate sales numbers. Today, period.
The days of true artist development over the long-haul died a long time ago, and with it the justification for 360 deals.
Again, I’m talking about the majors here, not necessarily the indies.
I think every major will start with this risk mitigation tactic. Most of them already started. I am excited what the German Sony CEO will tell us tomorrow, when he speaks at Popakademie in Mannheim