With the advancement of the computer and technology like internet, leading to an increase in file sharing and direct-to-fan digital distribution, combined with music sales plummeting in recent years, labels and organizations have had to change their strategies and the way they work with artists. New types of deals are being made with artists called “multiple rights” or “360” deals with artists. These types of pacts give labels rights and percentages to artist’s touring, merchandising, and endorsements. In exchange for these rights, labels usually give higher advancement payments to artists, have more patience with artist development, and higher percentages in CD sales. These 360 style deals are most effective when the artist is established and has a loyal fan base. For that reason, labels now have to be more relaxed with the development of artists because longevity is the key to these types of pacts.
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