THE DEALS

GUIDE
ASSIGN?

DISSECTING THE
DIGITAL DOLLAR
themmf.net/digitaldollar
WELCOME TO THE
DEALS GUIDE
For the last two years the Music Managers Forum has been
educating the artist and management community about
the inner workings of the streaming business through the
‘Dissecting The Digital Dollar’ project.
For the last two years the Music Managers Forum has been
This included the series of ‘Digital Dollar’ roundtables
educating the artist and management community about
involving artists, songwriters, labels, publishers, lawyers,
the inner workings of the streaming business through the
accountants
‘Dissecting Theand lots Dollar’
Digital of artist managers.
project.
One of the outcomes
This included the seriesof
ofthose
‘Digitaldiscussions was theinvolving
Dollar’ roundtables
consensus that artists
artists, songwriters, andpublishers,
labels, managerslawyers,
neededaccountants
to be better
and
informed about the
lots of artist managers. various different kinds of label and
distribution deals that are now available in the streaming
One
age, of
andthetooutcomes of these
have a fuller discussions was
understanding thepros
of the consensus
and
that artists and managers needed
cons of each different approach. to be better informed about
the various different kinds of label and distribution deals
that are
That waynow availablewill
managers in streaming
be betterage,
ableand to havetheir
to advise a fuller
artists
understanding
on what dealsof thesuit
best prostheir
and cons of eachAnd,
objectives. different approach.
by having
more options on the table, managers should be able to
That way managers would be better able to advise their artists
achieve better terms with key partners.
This Deals Guide seeks to do just that by identifying,
assessing and explaining ten key deal types.

DISSECTING THE
DIGITAL DOLLAR
themmf.net/digitaldollar
Introduction
The music business is made up of as well as helping artists create
companies and individuals who and distribute recordings, they also
work with artists to help them unlock provide investment and marketing
revenue around their music, their which can help the artist build their
performance and their fanbase. fanbase and therefore their wider
Most music companies specialise in business.
a specific revenue stream, meaning
an artist will have multiple business Over the last ten years the artist/label
partners at any one time. relationship has started to evolve,
partly as a result of changes in the
A key job of the artist manager – as economics of recorded music, partly
the one business partner involved in as a result of the emergence of digital
all aspects of an artist’s career – is to distribution and marketing channels,
help their clients identify and select and partly as a result of the expanded
the other business partners and to role of the artist manager.
then negotiate specific deals with
each of them. And to then manage Record labels – or companies that
the relationship between the artist provide the services of a record
and each business partner on a day- label (which may call themselves
to-day basis. labels, distributors or label services
companies) – remain key business
The record company – or record partners, especially for new talent,
label – is the business partner that but the nature of the partnership has
works with the artist on creating and changed. This guide looks at the
exploiting their recorded music. The different ways artists and labels work
label has always been seen as a together, the kinds of deals available
key business partner for the artist – to artists today, and the pros and
especially with new talent – because cons of different artist/label models.
THE DEALS GUIDE

Section One: The Services

A Label Partner Might Provide
Although primarily focused on the ADVANCE
artist’s recorded music, and the Upfront cash provided to the artist.
revenues associated with those For new talent, this cash injection
recordings, labels may provide a may allow an artist to focus on their
wide range of services to the artists music full time for the first time. The
they work with. These might include
all or any of the following:
hope is that, by going full time, an 3
artist can focus on growing their
 fanbase and, in turn, boost each of all relevant download stores and
their respective revenue streams. streaming platforms. Some labels
The label isn’t necessarily the only have their own infrastructure to
business partner to advance cash, deliver this content and deals in place
though a label advance would with the digital services, while others
traditionally be the most significant. will utilise the infrastructure and/or
deals of third parties.
RECORDING COSTS
The label often organises and pays PHYSICAL MANUFACTURE
for the recording of the artist’s music. & DISTRIBUTION
This would involve covering the If physical products are to be
costs associated with hiring studio released – ie CD or vinyl – the label
space, record producers, sound and will arrange for these products to be
mastering engineers, and any session both manufactured and delivered to
musicians. Under UK copyright law, high street and mail-order retailers.
by organising and paying for the Again, labels may have their own
recordings to be made, the label physical distribution network or
would be the default owner of the may utilise the infrastructure of third
sound recording copyright in those parties. Several logistics partners may
tracks. be involved to get product from the
factory to the high street.
ARTIST DEVELOPMENT
The label may support the artist’s CONSUMER MARKETING
creative development. This may be As a recording is first released a
simply through informal feedback, consumer-facing marketing campaign
or by funding songwriting and will be staged to promote both the
recording sessions, or by organising artist and the record. Labels normally
collaborations with other artists, lead on this marketing activity, putting
songwriters and record producers. together a campaign plan in liaison
with artist and management, and
PRODUCT DEVELOPMENT then delivering the campaign, either
Once recording sessions are in house or by employing third party
complete, various recorded music agencies.
products will be created including
THE DEALS GUIDE

single, album and EP releases. The Traditionally most marketing

label will usually work in liaison with campaigns would be structured
artist and management to decide around an album release, with about
what form these products will take, twelve weeks of activity leading up
and then commission and pay for to and after the release date. Though
accompanying visuals such as with the shift to streaming - where
photography, artwork and videos. repeat listening rather than first
week sales are the objective - longer
DIGITIAL DISTRIBUTION campaigns are often necessary.
The label arranges for completed
4 tracks to be made available to An album marketing campaign will
WHAT DOES YOUR PARTNER PROVIDE?

Cash Advance
Recording Costs
Artist Development
Product Development

4 Digital Distribution
Physical Manufacture
Physical Distribution
Consumer Marketing
B2B Marketing
Press
Promotions
Social & Digital
Sync
 likely include press and promotions activity if it believes this will lead to
work, social media and email activity, extra coverage which, in turn, further
and possibly advertising, events and promotes the new record.
publicity stunts. For the label, the
priority is generating sales and/or PROMOTIONS
streams of the record, though for the In addition to getting media coverage
artist – especially with new talent – for an artist’s release, the label will
the album campaign is as much about also seek to get the new music
building their brand and fanbase, so – specifically the single releases
to grow their other revenue streams – played on radio and TV, and in
as well. relevant clubs. Labels usually have
separate PR teams working on this -
B2B MARKETING usually referring to as the promotions
In addition to the consumer-facing or plugging team – or again may
marketing campaign, the label will outsource this work to an external
also promote the artist and their promotions agency.
recordings to an industry audience.
This traditionally meant sales activity SOCIAL MEDIA &
to persuade retailers to stock the DIGITAL CHANNELS
record. In the digital domain, the Another key component of a label
digital service provider allows any marketing campaign is the use
recordings to be pushed into its of social media and other digital
platform, so the B2B marketing is channels such as email. Most
more about ensuring a track has artists will have active social media
prominence, which usually means channels and email lists already,
getting it included in playlists on and the label will work with artist
the streaming services. The label and management on creating
may also promote the artist to other bespoke content for these channels
decision makers and opinion formers around the new release. This may
within the industry, usually on a more also involve the label putting some
informal basis. advertising spend into social media,
especially Facebook. The label may
PRESS also have its own digital channels via
A key component of a label which it will promote the release.
THE DEALS GUIDE

marketing campaign is getting

media coverage for the artist and SYNC
their release. The label usually takes Beyond generating revenue through
responsibility for this activity, either the sale and streaming of the artist’s
utilising in-house publicity teams or recordings, the label may also
hiring the services of external music seek opportunities to have tracks
PR agencies. Although the label synchronised into TV programmes,
is primarily promoting an artist’s movies, adverts and games. This
new recordings to blogs, websites, work involves pitching tracks to
magazines and newspapers, it music supervisors and negotiating
6 may also promote the artist’s other deals with potential sync clients.
WHAT DOES YOUR PARTNER WANT?

Exclusivity

Copyright Ownership

Control Of Recordings

Majority Cut Of Revenue

50/50 Split Of Revenue

Minority Cut Of Revenue

Cut Of Other Revenues

 Some labels are more proactive than that benefit both it and the artist.
others when it comes to sync, though This includes exploiting the artist’s
most will usually be pitching tracks recordings by placing them on
from across its catalogue to potential compilation albums and possibly
sync clients, rather than specifically pursuing brand opportunities other
seeking opportunities for any one than sync. It may also include seeking
artist at any one time. commercial opportunities beyond
the artist’s actual recordings if the
OTHER COMMERCIAL label is cut into other any of the
OPPORTUNITIES artist’s other revenue streams such as
The label may also be seeking merchandise, brand partnerships and
other commercial opportunities direct-to-fan.

Section Two: The Deal

All artists need business partners to certain number of recordings to the
provide at least some of the services label and is not allowed to make or
outlined in Section One. release recordings with any other
parties until that obligation has been
An artist may seek to do an all met (or the label has decided not to
encompassing deal with a single exercise its right to receive additional
label that provides all of these things. recordings).
Or they may seek to engage a
number of companies that together REVENUE SHARE
provide all of these services. With a few exceptions, label partners
don’t usually expect to charge
Or they may seek to do a deal with a upfront fees to the artist. Rather the
label – or a label services company label initially provides its services for
– to provide some of these services, free and then shares in any revenue
while the artist’s management the artist’s recordings generate. How
THE DEALS GUIDE

company provides the rest. this revenue is shared varies hugely

from deal to deal – in a classic record
WHAT THE LABEL deal the label keeps the majority of
PARTNER WANTS the money, in a modern distribution
deal the artist keeps the majority of
the money. The label will also likely
EXCLUSIVITY
be able to recoup some or all of
A label partner will usually want some
its costs before the revenue share
sort of exclusivity arrangement with
arrangement kicks in, either from the
the artist. In the case of a traditional
total income pool or specifically the
8 record deal, this would usually mean
artist’s share.
that the artist is obliged to deliver a
“would
under a classic record deal the label
own the copyright in any sound
recordings generated under the deal.
This means that the controls that come
with the sound recording copyright
belong to the label – not the artist
– and therefore it is the label that is
empowered to exploit those controls
”
COPYRIGHT OWNERSHIP exclusive licence to exploit the artist’s
Under a classic record deal the label sound recordings for a set period of
would own the copyright in any time, and will likely act as if it was the
sound recordings generated under copyright owner while those deals
the deal. This means that the controls are still valid.
that come with the sound recording
copyright belong to the label – not ANCILLARY REVENUES
the artist – and therefore it is the Traditionally a record label was only
label that is empowered to exploit cut into the artist’s recorded music
those controls for profit. revenue stream. Other revenue
streams – such as publishing (ie the
Under UK law, if the label arranges monetisation of the separate song
for the recordings to be made, copyright), live, merchandise, direct-
it would be the default owner of to-fan and brand partnerships – were
the copyright anyway. Where the not part of the deal. Artists would
recordings have already been made usually enter into deals with other
prior to the label’s involvement, those business partners to capitalise on
rights would be assigned to the label these other revenue streams.
through contract. The label may own
THE DEALS GUIDE

the copyright in the artist’s sound However, as the value of recorded

recordings for ‘life of copyright’ – so music slumped in the 2000s, many
70 years after release in the UK – or labels started to demand a cut of
the label may be the rights owner some of the other revenue streams
for a period of time after which the too, especially with new talent
copyright reverts to the artist. deals. The labels argued that it was
their investment and marketing
Distributor and distribution deals that unlocked these other revenue
do not usually involve copyright streams and that, as the financial
assignment, though the distributor return on recordings had declined,
or label will still often be granted an they needed a share of other 9
 “ artists like to retain ownership of
their copyrights, though most new
talent deals involve some copyright
assignment to the label, and in the
case of major label deals that may
well be for life of copyright. Artists
may be able to negotiate back
some of those copyrights in future
deals with the label, though that
option is not guaranteed
”
revenues to justify their upfront The label invests both money – in
commitment. terms of the cash advance and
budgets to pay for external suppliers
Which other revenue streams a label and advertising – and resources.
might share in, and quite what that This investment is secured on future
means, varies greatly from deal to revenues generated by the artist’s
deal. Labels usually refer to these as recordings. In the case of new artists,
‘ancillary revenues’, which tells you that can be a risky investment in that
that most labels are still primarily the future revenues are not assured.
interested in partnering with artists on As a result, the label will usually be
their recordings, and involvement in more demanding in new talent deals.
other aspects of the artist’s business
THE DEALS GUIDE

is seen as secondary, even if those SERVICES

other revenue share arrangements The label will provide some or all
might prove to be as lucrative. of the services outlined in Section
One. The artist’s deal needs to
WHAT THE LABEL outline which services in particular
PARTNER PROVIDES will be provided, with as much clarity
as possible as to what the label is
committing to the artist in terms
INVESTMENT
of budget, time and expertise. A
For new artists in particular, the most
tricky task for management is then
important aspect of the record deal
10 is the investment the label provides.
ensuring the label delivers on these
commitments once the deal has been statutory Performer Equitable
signed. Remuneration is due.

ROYALTIES But all other income will be paid to

Usually, all monies generated by an the label partner in first instance.
artist’s recordings will initially go to the The label partner then needs to
label partner, which will then pay the pay the artist their share, subject to
artist their share. The one exception contract. As mentioned above, the
to this is monies generated via the way income is shared between label
collective licensing system – so when and artist varies greatly from contract
PPL collects in the UK – where 50% to contract. The label will also likely
of monies will be paid directly to all be able to recoup some or all of
the performers who appear on any its costs before the revenue share
one recording. This is because when arrangement kicks in, either from the
the so called ‘performing rights’ of total income or specifically the artist’s
a sound recording are exploited, share.

Section Three: Negotiation Points

An artist’s manager and lawyer will COPYRIGHT OWNERSHIP
usually negotiate the deal with the Who owns the copyright in the sound
label partner. recordings created under the deal?
If the label is the copyright owner,
Like any business deal, the does the artist have any contractual
negotiations will cover a number of rights over how the recordings are
topics, but there are usually four key exploited? If the artist is the copyright
elements to the deal. owner, does the label have an
exclusive licence to exploit those
COMMITMENTS rights, and are there any limitations to
What is the label committing to the that licence?
artist in terms of investment and
THE DEALS GUIDE

services? And what is the artist Artists like to retain ownership of

committing to the label in terms their copyrights, though most new
of number of recordings, time and talent deals involve some copyright
exclusivity? While these commitments assignment to the label, and in the
will be outlined in contract and case of major label deals that may
therefore in theory enforceable by well be for life of copyright. Artists
law, in reality there needs to be a may be able to negotiate back some
degree of trust between the artist of those copyrights in future deals
and label with regard each party’s with the label, though that option is
willingness and ability to deliver. not guaranteed.
11
 ROYALTIES, RECOUPMENT these costs recouped out of all the
& DISCOUNTS income that comes in or from just the
The contract will set out how income allocated to the artist? The
revenues will be shared. Where former arrangement would usually
the label is the copyright owner, it be referred to as a ‘profit share deal’
pays the artist a royalty on revenues while the latter would be referred to
generated. Where the artist is the as a ‘royalties deal’. The ‘royalties
copyright owner, the label charges a deal’ arrangement is actually more
commission on revenues generated. common.
In many ways the distinction is merely
semantic, though these respective To illustrate the difference, take this
deal types are often viewed quite example: the artist and label are
differently. on a 50/50 split, there are £100K
in recoupable costs, and £250K in
Either way, the artist will usually income has so far been generated.
receive a percentage of revenues On a profit share arrangement, the
generated. There may be one first £100K would go to the label, and
percentage across the board or the the next £150K would be split 50/50,
percentages may differ depending on so the artist gets £75K. On a royalties
the revenue stream - eg 15% on CD, arrangement, half of the money
20% on stream, 50% on sync. The would be allocated to the artist – so
contract may also provide ‘discounts’ £125K – of which £100K would be
to the label, so that in certain taken to cover the label’s recoupable
scenarios – such as if income comes costs, so the artist gets £25K.
in via a non-UK subsidiary of the label
– a lower royalty rate applies. Arguably, many contracts have overly
complicated systems in place for
The contract also needs to define royalty payments, especially when it
what the percentages specifically comes to discounts and deductions,
apply to – if the artist is due 20%, it many of which came about in the
needs to be clear “20% of what”. The physical era and don’t make sense in
contract may allow the label to make the streaming age. Managers support
‘deductions’ to income – possibly to simpler royalty arrangements – with
cover specific identifiable costs or fewer or no discounts and deductions
THE DEALS GUIDE

possibly more generic deductions – and some labels and, especially,

– before the percentage due is distributors, already offer such
calculated, therefore reducing the simpler arrangements.
overall royalty that is paid.
REPORTING
The label will also usually be allowed As most monies generated by the
to recoup some or all of its costs out artist’s recordings go through the
of the revenue generated before the label at first instance, the artist is
artist is paid any money at all. The reliant on the label to report all
contract needs to set out what costs income, sums received and royalties
12 are recoupable in this way. Also, are due to the artist.
The shift to streaming has created a on their label partners to access this
number of challenges in this regard, information.
because with streaming there is so
much more data to report. Though Managers recognise that some
at the same time new technologies labels and distributors have invested
should also make the crunching and heavily in building platforms to more
distribution of this data simpler if the efficiently share royalty and usage
right platforms can be built. data, though there is still much room
for improvement here across the
The streaming services also provide industry.
valuable usage data as well as royalty
data which can inform an artist’s The MMF Transparency Guide
wider business. goes into all this in more detail, but
ensuring the artist has access to
While some streaming services this information is something that
provide this information directly to now needs to be considered when
artists, others only provide data to entering into a deal with a label
labels and distributors, so artists rely partner.

Section Four: Deal Types

There is a range of label partners kinds of partners signing different
and deal types for artists to choose types of deals as their career
from. progresses.

As mentioned above, some of these DEAL 01: DIY DISTRIBUTOR –

label partners are record labels in FEE BASED
the traditional sense, while others These companies provide basic
may call themselves distributors or digital distribution, getting tracks
label services companies. However, into most digital platforms (download
all offer at least some of the services stores and streaming platforms)
described in Section One. and providing usage and royalty
THE DEALS GUIDE

data back from the services. These

Not all these label partners and deal companies don’t usually provide
types are available to all artists. The proactive marketing services though
more risk a label partner needs to may provide some digital marketing
take, the more selective they will tools. These services are usually
be in choosing which artists to work available to all and any artists with
with. Quite what partners and deal a menu of off-the-shelf packages to
types are available – and which are choose from. They charge the artist
most desirable – will often depend a nominal set up fee for each release
on where the artist is in their career, but then pass on 100% of the income
and they will likely work with different generated. Some DIY distributors
13
 actually provide the basic distribution on that information. The idea is that
free of charge and then try to upsell by advancing on future income the
premium services. There is usually artist may be able to fund some
only a nominal commitment to these marketing that, hopefully, will boost
services, meaning artists can cancel streaming and therefore revenue.
contracts by providing only minimal The terms of this advanced income
notice. varies, and usually locks the artist to
the distributor until any advance has
DEAL 02: DIY DISTRIBUTOR – been paid back.
COMMISSION BASED
These companies also provide basic DEAL 04: DISTRIBUTOR
digital distribution, getting tracks into Artists can also seek to do deals
most digital platforms and providing with more conventional music
usage and royalty data back from the distributors, which traditionally
services. Likewise, these companies worked for independent labels, but
don’t usually provide proactive which may now work directly with
marketing services though may artists too. There is usually more
provide some digital marketing tools. flexibility in these deals, rather than
The difference with these companies the distributor offering off-the-shelf
is that instead of charging a set fee, packages.
there are no upfront costs and the
distributor instead takes a cut of any Conventional distributors will likely
income generated. These services want a higher commission than a
are usually available to all and any DIY distributor, but should offer more
artists, though some might employ services in return, in particular B2B
some sort of selection process. There marketing, helping to get releases
is usually only a nominal commitment stocked by retailers and playlisted by
to these services, meaning artists can streaming platforms. Most of these
cancel contracts by providing only distributors can also assist in physical
minimal notice. product distribution, either directly or
via third parties, where an artist plans
DEAL 03: DIY DISTRIBUTOR a physical release.
WITH ADVANCE
DIY distributors usually provide artists Artists can usually negotiate
THE DEALS GUIDE

with the tools to get their music into advances from distributors, but
the digital platforms and then pass on again this will primarily be based
any monies as they are generated. on past financial performance. The
However, some DIY distributors have advance will then be recoupable
also started offering advances on from the artist’s share of subsequent
future income in some scenarios. income. More conventional music
Such advances are usually made distributors will usually want a longer
based on past performance, ie where commitment from the artist than
a distributor can see what income a DIY distributor, ie a contractual
an artist has generated in the last commitment that they will work
14 year and can advance money based together for a set period of time.
“to the more risk a label partner needs
take, the more selective they will
be in choosing which artists to work
with … quite what partners and deal
types are available – and which are
most desirable – will often depend on
where the artist is in their career
”
DEAL 05: DISTRIBUTOR needs to set out what costs are
WITH MARKETING recoupable.
Many distributors now offer consumer
marketing as part of the deal. Quite DEAL 07: DISTRIBUTION
what this means varies greatly DEAL WITH A LABEL
from distributor to distributor. Some Many record labels now offer
distributors have in-house marketing distribution or services deals as well.
teams while others will commit to These may be through separate
hire external agencies. At least some divisions that are basically distributors
of the costs associated with this as described above, or an artist
marketing will likely be recoupable. might be able to sign a distribution
deal with a more conventional label.
DEAL 06: DISTRIBUTOR In the latter option, the label may
WITH LABEL SERVICES operate more like the label services
Some distributors offer a range of agency described above. Or the label
other label services in addition to may actually provide all the services
distribution and marketing, ie some of associated with a traditional record
the other services outlined in Section deal, but without any copyright
One above. The range of services assignment. This could be seen
THE DEALS GUIDE

on offer varies from company to as the best of both worlds, though

company, and which services are deals of this kind are most commonly
included varies from deal to deal, offered to more established artists.
though most distributors assume that
the artist has already recorded the DEAL 08: ASSIGNMENT
album before engaging their DEAL WITH A LABEL
services. Distributors of this kind (PROFIT SHARE)
usually offer a lot of flexibility as to This is a more traditional record
what services are part of the deal, deal, in which most of the services
so that artists can pick and choose outlined in Section One are provided,
what they require. The deal obviously including a cash advance, and the 15
 label is involved in the recording Indie labels generally can’t afford to
of the album. The copyright in any invest as much upfront as a major, but
sound recordings belongs to the are usually more flexible on copyright
label, at least for a time. Under assignment for a set term (rather
a profit share arrangement, any than life of copyright), are less likely
recoupable costs are recouped out to apply complicated discounts and
of all the income generated, not deductions, are less likely to interfere
just the artist’s share. These deals artistically, and are more likely to
are traditionally offered by smaller continue working an album that
independent labels which would doesn’t enjoy immediate success if
generally commit to invest less they believe it still has potential.
money upfront. All of the label’s costs
would commonly be recoupable, and DEAL 10: ASSIGNMENT DEAL
the subsequent split would usually be WITH A LABEL (ROYALTY
50/50. DEAL – MAJOR)
This is basically the same as the
DEAL 09: ASSIGNMENT indie label deal described above.
DEAL WITH A LABEL Again, the label provides most of
(ROYALTY DEAL – INDIE) the services described in Section
This is also a more traditional One and may choose to go beyond
record deal, in which most of the their contractual commitments
services outlined in Section One in distributing and marketing the
are provided. Indeed, under more release, especially if it feels like the
conventional record deals of this kind record is gaining momentum. The
the label may choose to go beyond copyright in any sound recordings
their contractual commitments belongs to the label, some costs are
in distributing and marketing the recoupable out of the artist’s share,
release, especially if it feels like the and the label likely keeps the majority
record is gaining momentum. The of the income.
copyright in any sound recordings
belongs to the label, at least for a Major labels are generally able to
time. invest more money upfront and
have access to global infrastructure
Under the royalty deal arrangement, if the local division can convince
THE DEALS GUIDE

it is agreed which of the label’s divisions in other countries of an

costs are recoupable (this commonly artist’s international potential. Major
includes the advance, recording labels are more likely to push for
costs, videos and TV advertising) and assignment for life of copyright and
these come out of the artist’s share of to apply complicated discounts and
income. Although indie labels may be deductions to income. They may
more generous on royalty splits than seek to interfere artistically – though
the majors, these deals would usually this happens a lot less than it used
still see the label keeping the majority to – and major labels generally
of the income generated. expect more immediate results from
16 releases.
 WHAT SERVICES DOES EACH DEAL PROVIDE?

DISTRIBTOR+M

PROFIT SHARE
DIY+ADVANCE

DISTRIBUTION
DISTRIBTOR+S

MAJOR LABEL
DIY – COMM

INDIE LABEL
DISTRIBTOR
DIY – FEE

Cash Advance 8 8 4 4 4 4 4 4 4 4

Recording Costs 8 8 8 8 8 8 8 4 4 4

Artist Dvlpmnt 8 8 8 8 8 8 8 4 4 4

Product Dvlpmnt 8 8 8 8 8 4 4 4 4 4

Digital Dist 4 4 4 4 4 4 4 4 4 4

Manufacture? 8 8 8 8 8 4 4 4 4 4

Physical Dist 8 8 8 4 4 4 4 4 4 4

Consmer Mktng 8 8 8 8 4 4 4 4 4 4

B2B Mktng 8 8 8 4 4 4 4 4 4 4

Press 8 8 8 8 4 4 4 4 4 4

Promotions 8 8 8 8 4 4 4 4 4 4

Social & Digital 8 8 8 8 4 4 4 4 4 4

Sync 8 8 8 8 8 4 4 4 4 4

Remember – every deal is different. This chart simply provides a guide

to the kinds of services the different deal types might commonly provide.
 “thatnegotiating future proof deals – ie deals
remain logical and fair as the recorded
music business changes – is difficult
”
Section Five: Trends & Challenges
Artists have a greater range of label an increasingly competitive market
partners and deal types to choose place. More optimistic managers
from today than in the past. also hope that this market pressure
might encourage labels to be more
Traditional deals remain attractive transparent and flexible.
if an artist seeks a single business
partner to take on full control of their However, one key challenge that
recorded music and provide all the remains is that, in a recorded music
services outlined in Section One, but market that continues to evolve
the label will likely seek copyright rapidly, negotiating future proof deals
ownership and royalty rates in its – ie deals that remain logical and
favour. fair as the recorded music business
changes – is difficult.
For artists who – probably with their
management – can handle areas like This is principally a problem where
organising recordings and planning deals involve assignment for life of
marketing campaigns themselves, the copyright because, while an artist
various distributor and distribution may only be actively working on new
deal options are attractive, enabling content with a label for a few years,
the artist to pick and choose which they will be receiving royalties from
services they take and – by reducing their label partner for at least the next
the label’s risk – being able to 70 years. And the recorded music
demand more favourable terms when industry will likely go through several
it comes to copyright ownership and revolutions in that time, making
royalties. legacy contract terms impractical and
THE DEALS GUIDE

inequitable.
This puts more strain onto
management, both in terms of This is proving problematic today
navigating the deals on offer, with legacy contracts from the
sourcing alternative finance, and Twentieth Century when assignment
in providing some of the services for life of copyright was the norm.
that were previously handled by Managers feel that – in the absence
the label. Though as more artists of an industry-wide initiative to bring
pursue distributor and distribution old contracts into the modern age
deals, managers may find they can – legislative change is required to
18 negotiate more favourable deals empower artists to bring old deals in
with more conventional labels in line with current standards.
 INTRODUCING THE MMF DIGITAL DEALS
COMPARISON CALCULATOR

ASSIGN?

To accompany this guide, the MMF has created a

Digital Deals Comparison Calculator to help managers
more easily compare the pros and cons of different
deal types, in terms of the services a business partner
provides and how future streaming income will be
approximately shared. You can access the Digital Deals
Comparison Calculator at themmf.net/digitaldollar
The Deals Guide identifies, assesses and explains ten key
label and distribution deal types available to recording
artists in the streaming age. It has been produced by music
consultancy CMU Insights for the Music Managers Forum.

ABOUT THE MUSIC MANAGERS FORUM | themmf.net

MMF is the world’s largest professional community of music
managers in the world. Since our inception in 1992 we have
worked hard to educate, inform and represent our managers
as well as offering a network through which managers can
share experiences, opportunities and information.
We are a community of 500 managers based in the UK
with global businesses and a wider network of over 2000
managers globally. We engage, advise and lobby industry
associates and provide a professional voice for wider industry
issues relevant to managers.
The MMF runs training programmes, courses and events
designed to educate and inform artist managers as well as
regular seminars, open meetings, roundtables, discounts,
workshops and the Artist & Manager Awards.

CMU ABOUT CMU INSIGHTS | cmuinsights.com

CMU is a service provider to the music industry best known
for its various media: free daily news bulletin the CMU Daily,
weekly podcast Setlist, and premium services CMU Digest
and CMU Trends.
CMU Insights provides training and consultancy to music
companies and companies working with music. We offer
training and research services; seminars and masterclasses;
and insight sessions at music conferences around the world.

DISSECTING THE
DIGITAL DOLLAR
themmf.net/digitaldollar