I’ve been seeing a lot of stories in “music news” lately about artists reclaiming their master recordings. In the wake of Nipsey Hussle’s recent passing, the fact that his estate has full ownership of his masters has become a point of hope and optimism despite the tragedy of his departure.
I’m sure that I know a lot of people who aren’t necessarily aware of how much of a fucking dub it is to own your own master recordings. I know this because, well, they’ve asked me about it. After all, the particularities of our favorite artists record deals aren’t necessarily relevant to any of our own lives and even less relevant to our ability to enjoy their music. But everyone wants to understand the news and, right now, this stuff is in the news.
That being said, you might be surprised at how rare it is for big label artists, ones that we naturally associate with obscene wealth and near transcendental levels of personal freedom and autonomy, to own their own music. For example, did you know that the Beatles (all four of them put together) didn’t own their recordings until 2017? Michael Jackson purchased the rights to their catalogue in 1985 for $47.5 million. In a total bro move, Jackson did not bequeath those rights to the band upon his own death in 2010.
In fact, It took seven years of legal battles for Paul McCartney to even reach a compromise with Sony over the rights and they’re The fucking Beatles. Their catalogue is valued at $1 billion. So what’s the deal here? (no pun intended. But now, as I write this, it is quite intended).
First of all, what exactly is a master recording? We all have access to these artists’ catalogues in digital and physical forms. What’s the difference between an mp3 file and these multi-million dollar recordings of the same composition of sounds?
It all starts at the moment an artist signs a deal with a major label. Imagine that you’re interested in putting together a hit album that aims to compete with established artists for billboard spots. You’re trying to make some money. Dollar dollar bills, playa. C.R.E.A.M.
Well that costs a fuckload of someone’s money. I’m talking at least $100,000 dollars if you want the type of professional studio quality that you hear from the world’s biggest musical acts. A master recording is the original recording of whatever gets recorded in that expensive ass studio. And the label owns it because they paid for that studio time.
Essentially, once you’re signed, the label gives you a cash advance so that you can record that album. In a lot of cases, the artist doesn’t even get to decide how that money is allocated. Everything is designed by the labels to get as much of a return on their investment in you as possible. They choose the studio, they choose the engineers, they choose everything.
Suspiciously, the labels normally tend to have very expensive tastes. Even when they’re trying to hop on the wave and replicate unpolished DIY sounds of the independent music scene (examples through the years include The Sex Pistols, the barrage of Eddie Vedder sound alikes that rose from the ashes of the grunge scene of the late 80’s and early 90’s, Lil Yachty and, of course, The fucking Beatles).
Now, let’s talk about numbers.
In exchange for the lump sum of cash that the label “provides” to the artist, the label usually takes about 90% of all revenue that the album generates. If your album makes $1 million then the label keeps $900,000.
Even further from that, a lot of deals also have clauses that stipulate that the artist return the amount of that advance from out of their pocket. If the label gave you $100,000 to make that album that made $1 million, then you would have to give the label back the first $100,000 that your album made. Then you have to give them 90% of the remaining $900,00 dollars. You have now made $90,0000 from your album.
Which is great until you consider that labels generally limit you to one album every 3-4 years. That means that you’re making 22.5K to 30K a year. If you work a job that makes $12/hr you make about as much money as that artist who made that hit album.
And god help you if your album doesn’t sell. I’ll leave you guys to ponder the full scope of the repercussions. Just keep in mind that, when you’re strapped into one of these contracts, that the label also has full control over your marketing and touring ability. They can fucking bury you. Ask, like, every other artist that’s ever been signed to Cash Money Records.
On top of that, you don’t even own the music that you made. Ownership of the master recordings means that, in every instance that a piece of music is played (digital streams, commercials, every time it’s sampled, albums bought, etc), the royalties resulting from those appearances goes to the label. NOT the artist.
That shit sucks but there are other avenues for artists to make music, right? They can still generate revenue for themselves via merchandising, ticket sales/tour revenue, endorsement deals and shit like that, right?
In the past, this was somewhat true. But with physical sales declining (CD’s, Tapes, Live Performance Vids) labels are starting to look elsewhere to recoup their investments in these artists.
Enter: The 360 Deal.
I’m not sure if you guys remember that viral video of Joe Budden yelling at Lil Yachty on the now defunct show, “Everyday Struggle”. But it was essentially Joe Budden attempting to convince Yachty that he had signed the worst deal that he could have signed. A terrible fucking decision. One that, even if Yachty had acknowledge the mistake, couldn’t possibly be remedied until his contract with Quality Control, Motown, and Capitol records (yes, he’s signed to THREE SEPARATE LABELS) runs out.
Yachty has a 360 deal. This means that those three labels not only own his masters but they each get fat cuts from his tours, concerts, live performances, merchandise sales, endorsement deals, appearances in movies, television shows, publishing revenue, songwriting credits AND his Sprite commercials.
In exchange, labels offer increased and prolonged promotion for the artist in relation to what they would have received from the deals of the past. However, if the artist is successful enough, they don’t actually need the promotion that the label offers. If the artist’s album flops, then no amount of “prolonged promotion” will sway public opinion.
Think of all those videos of label heads giving these artists gifts like sports cars, chains, and trendy clothes. The first of two depreciate substantially in value over the years (a side note?). A 20K chain makes the artist look like he’s making more money than he is. In turn, the social media machine is alerted to said artists viability as an “up and comer”. The label builds a narrative around the artist as to suggest that he’s “winning the game”.
The kids buy all of the artist’s shit. T-Shirts, mp3’s, fashion nova jeans etc. The whole time, the artist himself is getting as minimal a fraction of that money as the label can stand to part with.
Then the artist drops a bad album. The kids don’t think they’re quite so cool anymore because they’re now 30 and can’t relate to the ever transforming cultural zeitgeists of the internet age. The endorsement deals run dry because you can’t influence the buying class anymore.
At least you still have the royalties from your hit songs of the past? The ones that built you up in the first place? Nope. The label gets all of that. You can no longer afford to maintain that car they gave you. You can’t pay for the mansion that they set you up in. You have to sell all of the jewelry. You’ve hit rock bottom.
I’ve already written a lot so I’m going to drag out the conclusion. Kanye’s getting his masters back. Nipsey owned all of his already. Mac Miller refused to sign a label for years in order to retain the rights to his music.
The point is that you won’t and can’t be hot forever. Or at least you can’t count on it. Everything is great when you’re on top but artists should remember that, at the end of the day, they are a product in the eyes of these labels. Just like an athlete, once your body can’t keep up, you will get cut.
Hopefully, the next generation of kids making dope music follow suit and make themselves aware of their options. You don’t even need a label anymore. There are a limitless amount of resources out there for them to educate themselves and make their own way now that the channels of dissemination have broken free of the industry model. It might take a little more work but a little bit of work gets you what you want.