In the June 2008 issue of Entertainment Law & Finance, Los Angeles attorney Paul Menes discussed the music industry's increased focus on agreements that seek multiple exploitation rights from artists.
'360' Agreements Reflect Industry's Economic Shift
During the last few years, recording artists have been entering into so-called "360 agreements" with record companies and entertainment corporations in increasing numbers, changing the relationship that existed for decades among artists and major labels. Instead of focusing solely on sales of recorded music, the record companies now are sharing, through these agreements, in performers' income from a 360-degree range of professional activities. These developments reflect the difficulties encountered in the music industry as electronic transmission of recordings has become dominant and piracy rampant, making the financial returns from sales of records insufficient to justify the cost of creating, marketing and promoting recorded music.
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