In return, the artist agrees to give the company a percentage of an increased number of their revenue streams, often including everything from digital and online streaming and live performance to merchandise sales, endorsement deals, and songwriting royalties.
[1] Developed within the last 20 years (in the 21st century), the business arrangement is an alternative to the traditional recording contract, where the artist usually has control of personal revenue streams (outside the core business relationship around the sharing of revenues in music production).
In a 360 deal, a company typically agrees to support an artist upfront in a greater amount than covered by a traditional recording contract, on the condition of receiving a percentage of revenue from the traditional areas as well as additional ones.
[3] It was submitted to Atlantic Records for the rock band Paramore while Hanson, Marcus and Zumwalt were employed by the label.
Panos Panay, CEO of online music platform Sonicbids, has said: "If you want to find out the future of 360° deals, look at Motown in the late 60s.
I didn’t know that some bands don’t own their merch, which to me is like -- straight up, you’re being robbed.