And since artists can still make big money by performing live, their record companies want to feast on that, too. That can mean a piece of the ticket proceeds, the merchandise, or whatever else.
The real question for the artist who is offered a 360 Deal is ... What is the record company doing to earn that chunk of all 360 degrees of my work? In some cases, the record company may be promoting the artist in a big way and helping to make those live gigs happen. Sure, if they're hyping you to the heavans, that's a great thing. An artist will take all the marketing he or she can get.
But if they aren't pimping your work and they want a piece of every last thing you do, the record companies are freeloading. They are asking for more than they have earned. And artists need to be wary of that. I can help you negotiate with record companies. If you've been offered any type of music industry contract, call me at (973) 376-8585 and I will look out for your interests.
If you want to read more informative blog entries about music law, you may want to visit the website of a colleague of mine, Brian Mencher, Esq., a music attorney in Brooklyn. More information is a good thing.