Imagine you’re a young artist.
You upload songs from your bedroom.
One of them explodes on TikTok.
A few months later…
A major record label calls you.
They offer you exactly what you’ve been dreaming about.
A recording budget.
Professional producers.
Music videos.
Marketing.
Tour support.
Distribution around the world.
It feels like your life is about to change.
You sign the contract.
Everyone congratulates you.
Your career takes off.
Your songs start climbing the charts.
Then something unexpected happens.
You launch your first world tour.
The concerts sell out.
You release hoodies.
Caps.
Posters.
A brand pays you to promote its sneakers.
You’re thinking,
« Finally… this money is mine. »
Not necessarily.
Because hidden inside many modern recording deals is something called a 360° contract.
And despite the name…
It has nothing to do with music.
It has everything to do with your entire career.
Years ago, record labels made most of their money selling CDs.
Every album sold meant more revenue.
Then streaming arrived.
People stopped buying music.
Spotify.
Apple Music.
YouTube.
Suddenly, labels weren’t earning what they used to from recorded songs alone.
So they changed the business model.
Instead of making money only from your music…
Some contracts started giving labels a percentage of almost everything you earn.
Concert tickets.
Merchandise.
Brand partnerships.
Sponsorship deals.
Sometimes even appearances or licensing opportunities.
The exact percentage depends on the contract.
But in some cases, labels can receive up to 20% of an artist’s live performance income.
Think about what that means.
You spend months rehearsing for a tour.
You’re the one on stage.
You’re the one performing every night.
The crowd came to see you.
And yet…
Part of that revenue may still go back to the company that signed you years earlier.
Now, before calling it unfair…
There’s another side to the story.
Labels don’t ask for a share of everything for no reason.
Launching an artist is expensive.
Recording albums.
Filming music videos.
Marketing campaigns.
Radio promotion.
Playlist pitching.
International distribution.
Millions can be invested before an artist earns a single euro.
From the label’s perspective…
A 360 deal is a way to recover that investment.
Especially if streaming alone no longer pays enough.
So who’s right?
Honestly…
Both sides have arguments.
Without labels, many artists might never reach a global audience.
Without artists, labels have nothing to sell.
The tension begins when young musicians sign contracts without fully understanding what they’re giving away.
Because when you’re twenty years old…
And someone offers you your dream…
You’re probably thinking about your first hit.
Not about a clause that could still affect your income ten years later.
That’s why entertainment lawyers repeat the same advice over and over again.
Never sign a contract you don’t completely understand.
Because in the music industry…
The most expensive mistake isn’t recording a bad song.
It’s signing away part of your future before your career has even begun.
And maybe that’s the biggest illusion of fame.
Fans see the spotlight.
The platinum records.
The sold-out arenas.
They rarely see the contract that quietly decides where the money goes long after the applause ends.
The real question is…
When a label helps build an artist into a global star… where should its rights end: with the music it financed… or with the artist’s entire career?
