Beyond the lights, pyrotechnics, and tabloid banter, there exists a very prominent business component to the music industry.
Indeed, it’s often a case of the bigger the star, the bigger and more complex their record deal.
Interestingly, a new report highlights that four of music’s most powerful names – Beyonce, Justin Timberlake, Taylor Swift, and Coldplay – are owing their respective labels just one more album.
The significance? Find out below…
Via Hits Daily Double:
Swift is one of four superstars—along with RCA’s Justin Timberlake, Columbia’s Beyoncé and Parlophone’s Coldplay—who are just one album from the ends of their deals/ But whether these acts re-up or take their talents elsewhere—and there will be no shortage of bidders for their services as recording artists—their next deals are likely to be less gigantic than their present ones, simply because elephant-bucks deals can no longer be justified economically. While the $15-20m range wasn’t uncommon in the past for major acts, the ceiling now seems to be $10m tops—except for Adele.
Fascinating and a more than likely indicator of major changes in the musical sphere on the horizon.
Note that – save for Swift – each of the aforementioned acts established themselves during a time when major labels were lavishing their top tier talent with equally lofty deals.
Fast forward to today and the climate is altogether different. 360º deals rule the roost, with labels increasingly keen (and able) to demand a % of touring, endorsements and the like. Reliable sources have always suggested that the likes of Bey and JT are on contracts that see their label only entitled to music royalties – giving the artist a lionshare of the revenue generated from other ventures.
With their deals drawing to an end, it will be intriguing to see which moves each take. Are Madonna-esque Live Nation deals in the pipeline (see: triple figure millions to tour with the ability to release albums at different labels)? Will some perhaps go Indie? Or will existing labels fight hard to retain their money-makers? Time will tell.
In the meanwhile…