What Is a 360 Deal? What to Watch Out for in Music Contracts

For many emerging artists, the dream of landing a record deal can feel like a golden ticket. But not all deals are created equal, and one of the most controversial types is the 360 deal. On the surface, it may look like a label is investing in your future, but in reality, these contracts can come with serious long-term consequences if you're not careful.

This article breaks down what a 360 deal actually is, how it works, and why artists like Robbie Williams, Kesha, and Paramore have faced challenges under this structure. If you’re navigating the music industry in 2025, understanding 360 deals is essential before signing on the dotted line.

What Exactly Is a 360 Deal?

A 360 deal, also known as a multi-rights deal, is a contract where the record label takes a cut of all of an artist’s revenue streams, not just record sales or streaming. This typically includes income from:

• Touring and live performances

• Merchandise sales

• Sponsorships and brand deals

• Sync licensing (TV, film, adverts)

• Publishing royalties

• Social media and influencer income (in some modern contracts)

The rationale from the label’s perspective is that they’re investing heavily in the artist’s career, beyond simply promoting an album. As a result, they expect to benefit from all the revenue the artist earns, even from ventures they don’t directly influence. While this model helps labels protect their investment, it can limit the artist’s long-term independence and income potential.

Why Labels Offer 360 Deals (and Why Artists Accept)

360 deals gained popularity in the early 2000s, as physical record sales declined and digital piracy rose. Labels, facing shrinking revenues, began looking for ways to monetise artists more comprehensively. With artists generating income through touring, merchandise, and brand endorsements, labels wanted a slice of those pies too.

For new artists, these deals may seem appealing. They often include marketing budgets, tour support, and access to industry networks that would be hard to achieve alone. The problem arises when artists, lacking leverage or legal counsel, sign deals that commit them to long-term financial obligations far beyond what they bargained for.

What Are The Risks of a 360 Deal?

The greatest issue with a 360 deal is the loss of control over your income streams. In a traditional record deal, you might still earn solid revenue from touring and merchandise, even if album sales underperform. In a 360 deal, however, these fallback incomes are also split with the label, often at unfavourable rates.

Worse still, many 360 deals don’t scale as an artist grows. You may sign a contract early in your career when you have little bargaining power, only to find yourself locked into a deal that still takes 20–30% of everything you earn, even after you’ve become an international star. Renegotiation is possible, but not guaranteed, and many artists find themselves stuck unless they’re willing to fight it out in court or buy their way out.

Real-World Examples of 360 Deals Gone Wrong

Paramore – Success, But With Strings Attached

Hayley Williams (Paramore) signed to Atlantic Records under a 360 deal in 2003 when she was just 14 years old. This long-term deal saw the label take cuts of more than just album sales. Despite achieving mainstream success, the band publicly expressed frustration with how the deal limited their earnings and creative decisions. While their fanbase grew and their popularity soared, the financial rewards didn’t always reflect their success.

Only years later, with greater leverage, were they able to negotiate better terms. This case highlights a common issue: artists sign 360 deals when they’re unknown and stay stuck with them long after they’ve outgrown the need for a label’s full support.

Kesha – Locked in a Career-Spanning 360 Deal

Kesha's story is one of the most troubling examples in the industry. At just 18 years old, she signed a deal with producer Dr. Luke’s Kemosabe Records, a 360 deal under Sony Music, giving the label and producer a share of virtually all her earnings. As allegations of abuse against Dr. Luke later emerged, Kesha found herself legally bound to a contract that controlled both her music and her public image.

While her case was unique due to the personal circumstances, the structural limitations of a 360 deal made it even harder for her to gain independence. The label’s control over her music meant she couldn’t release new material freely, and attempts to exit the contract were met with years of court battles.

Robbie Williams – A Record-Breaking Deal With Long-Term Costs

In 2002, Robbie Williams was 28 years old when he signed a monumental £80 million deal with EMI, one of the earliest and most publicised 360-style contracts. EMI didn’t just want rights to his music, they took a share of his touring, merchandising, publishing, and practically every other revenue stream that Robbie generated. At the time, this was hailed as a revolutionary deal in British music history.

But while the upfront payout was massive, Williams later voiced regret over how restrictive the relationship had become. He criticised EMI for being out of touch in the digital age and, by 2006, refused to tour in support of his EMI-released material. The deal ultimately gave the label too much control over his career, and this is a prime example of how even seasoned artists can become bound by overly comprehensive contracts.

What to Watch Out for Before Signing

If you’re offered a 360 deal, take the time to understand every clause. Is the label taking a percentage from every income stream or only specific ones? Are there limits to their cuts? Is there room to renegotiate if your career takes off? You’ll want to ensure the contract:

• Defines exactly what the label is entitled to

• Has reasonable percentages based on their actual involvement

• Includes sunset clauses or milestones to renegotiate terms

• Maintains your rights to approve endorsements and creative decisions

And perhaps most importantly, never sign without independent legal advice. A good music lawyer can help you understand what’s fair, what’s risky, and whether the deal truly supports your long-term growth.

Should You Ever Sign a 360 Deal?

It’s important to consider that not all 360 deals are bad. For some artists, especially those with no team, no funding, and no existing audience, they can provide you with crucial resources. But they should never be signed blindly. If you’re already building momentum on your own, you may not need to give away such a large slice of your future earnings.

The key is leverage. If you bring something valuable to the table, such as a viral single, a strong fanbase or a proven track record, you’re in a much better position to negotiate on your terms and perhaps avoid a 360 deal altogether.

In the end, success in music isn't just about talent or exposure; it’s about understanding the business you're entering. Don’t trade your career for short-term hype or upfront cash.

The wrong contract could cost you more than just royalties; it could cost you your freedom.