Drake has learned that he could earn between $15 million and $20 million in advance money should he choose to leave Universal Music and sign with one of its star-seeking rivals.
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An “advance” is almost always defined as a pre-payment of royalties, whether the advance is paid by record company to an artist, a publisher to a writer or a merchandiser to an artist.
It now seems that the rapper has come to the end of his time with Cash Money (a Universal Music subsidiary) and isn’t interested in entering a new agreement with the company following the problems it has faced with its leading man Lil’ Wayne.
Fortunately for Universal, it also seems that he has no intentions of leaving them…for now.
For, the multi-faceted performer has learned that rival labels are prepared to hand him close to $20 million in exchange for a piece of his profits should he choose to sign with them.
Dina LaPolt of LaPolt Law firm, who represents Britney Spears, made this assessment…
Drake has the bargaining power to negotiate a net profit split with the best deal terms and a humongous advance up front.
An exciting possibility. Another one? Union with a streaming service.
Rather than signing with a record company, Drake could ink directly with a streaming service like Spotify or Apple Music, in an arrangement similar to that of Frank Ocean’s 2016 album “Blonde,” which was initially available exclusively for streaming and download on Apple Music. Drake’s deal would not have to be exclusive beyond a given window — he could cut separate arrangements with other digital service providers — and pact with a label of his choosing for physical product. Drake’s stature could also allow him to make a more favorable deal than most artists, possibly for as much as 70% of revenue.