360 Deals Explained: How They Differ on Major Labels vs Indie Labels

September 27, 2025 by Dahrk Vision in Indie vs. Major Labels

What is a 360 deal in music? This in-depth guide explains how 360 contracts work, how they differ on major labels vs indie labels, and what artists need to know before signing.

Introduction

For artists navigating the modern music industry, few contract terms are as debated as the “360 deal.” Once rare, 360 agreements are now standard for most major label signings, while indie labels vary in their adoption.

A 360 deal gives the label a share of not only an artist’s recorded music revenue but also their touring, merchandising, endorsements, publishing, and more. Proponents argue this allows labels to invest more in artists. Critics say it is an overreach into areas traditionally owned by the artist.

This article provides a step-by-step breakdown of 360 deals, explaining how they differ between majors and indies, and equipping artists with the knowledge to assess risks and opportunities.

What is a 360 Deal?

A 360 deal (or “multiple rights deal”) is a contract in which the label earns a percentage of all income streams generated by the artist. This includes:

Record sales & streaming.
Touring revenue.
Merchandising.
Endorsements/sponsorships.
Film/TV appearances.
Publishing (sometimes).

This contrasts with traditional contracts, where labels only earned from recorded music sales.

Why the shift? As CD sales collapsed in the 2000s, majors sought new ways to capture revenue in the digital age (Marshall, 2013).

Standard Structure of a 360 Deal

Income Stream	Major Label Share	Indie Label Share
Recorded Music	80–85% (after recoupment)	40–60%
Touring	10–30%	Rarely take touring revenue
Merchandise	10–25%	Usually none
Endorsements/Sponsorships	10–20%	Limited/negotiated
Publishing	Up to 25%	Rarely included

Key Point: Majors often structure deals aggressively, while indies either avoid 360 models or apply them in softer, partnership-oriented ways.

How 360 Deals Work in Practice

Example 1: Major Label Artist

Advance: $500,000.
Album sells well, but royalties are recouped.
Artist goes on tour earning $2M.
Label takes 20% ($400,000) of touring revenue.
Label also claims 15% of merchandise and endorsements.

Result: Artist’s biggest income streams are reduced by label participation.

Example 2: Indie Label Artist

Advance: $50,000.
Label takes 15% of recorded music only.
Artist keeps 100% of touring and merchandise.

Result: Lower upfront support, but higher long-term retention of earnings.

Case Study 1: Paramore & Warner (Major Label 360)

Paramore’s 360 deal with Warner reportedly included cuts from touring and merchandising. While Warner’s support boosted global reach, the band later pushed back against contractual restrictions that limited their autonomy (Marshall, 2013).

Case Study 2: Chance the Rapper (Independent Alternative)

Chance avoided 360 deals by staying independent. Instead, he monetized through streaming partnerships, merch, and touring — income streams majors would have claimed. This highlights how rejecting 360s can empower artists to retain wealth (Watson, 2020).

Case Study 3: Protoje’s In.Digg.Nation (Hybrid Indie Model)

Protoje’s label in Jamaica operates with distribution and licensing deals rather than full 360 models. Artists like Lila Iké retain control of touring and merchandise, while benefitting from wider distribution through partnerships with RCA.

Legal Analysis: Clauses in a 360 Deal

Common Contractual Language

Gross vs Net Revenue: Labels prefer a cut of gross income, while artists should negotiate based on net after expenses.
Exclusivity Clauses: Labels may require approval for outside brand partnerships.
Duration: Contracts may extend beyond music into “life of artist” clauses, effectively binding multiple revenue streams indefinitely.

Risks for Artists

Reduced long-term earnings.
Loss of autonomy in branding.
Potential exploitation if label underperforms but still takes revenue cuts.

Protections to Negotiate

Limit 360 participation to recorded music only.
Negotiate caps on percentages for touring and merch.
Insist on net revenue definitions for fairer payouts.

Why Artists Still Accept 360 Deals

Large Advances: For many, upfront cash outweighs long-term losses.
Global Reach: Majors justify 360 deals by funding expensive campaigns.
Risk-Sharing: Labels argue they invest in artists across multiple revenue streams, so deserve a share of the upside.

But in practice, 360 deals disproportionately favor labels — especially majors.

The Indie Approach to 360

Indie labels may:

Avoid 360s entirely, keeping contracts simple.
Apply limited 360 terms (e.g., 10% on merch if the label helps produce it).
Operate collectives where shared resources justify shared revenue.

This creates a fairer balance of power than majors, aligning interests between label and artist.

The Future of 360 Deals

DIY Distribution: Services like TuneCore and UnitedMasters reduce the appeal of 360 deals.
Artist Leverage: Successful artists can reject or heavily modify 360 clauses.
Jamaican & Caribbean Context: Artists increasingly use indie-first strategies, leveraging sound system promotion and YouTube, then only engaging with majors via distribution partnerships rather than full 360 commitments.

Conclusion

360 deals represent the corporatization of artist income beyond music. While majors use them aggressively, indies tend to apply softer versions or avoid them entirely.

For artists, the decision comes down to trade-offs between upfront support and long-term autonomy. If financial independence and career longevity are priorities, rejecting or renegotiating 360 deals is essential.

Ultimately, the smarter path may be hybrid strategies: building leverage independently, then engaging majors on terms that limit 360 participation.

References

Hope, D. P. (2006). Inna di Dancehall: Popular Culture and the Politics of Identity in Jamaica. University of the West Indies Press.
IFPI. (2023). Global Music Report 2023. International Federation of the Phonographic Industry.
Marshall, L. (2013). The 360 deal and the “new” music industry. European Journal of Cultural Studies, 16(1), 77–99.
Passman, D. S. (2019). All You Need to Know About the Music Business (10th ed.). Simon & Schuster.
Tschmuck, P. (2017). The Economics of Music. Agenda Publishing.
Watson, A. (2020). Independent success stories: The case of Chance the Rapper. Journal of Music Business Research, 9(2), 44–60.