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		Contracts-How Have They Changed During The 21st Century? The nature of music related contracts have changed hugely over the last five years. The reasons for this are varied but relate directly to the massive expansion of the Independent market. No Longer will you find labels offering a four or five album deal to a previously unsigned artist/band. This is not necessarily a bad thing as it means that less artists/bands are being tied to a label that demands a certain type of music from them. It has opened the doors to new and old labels that have always pioneered music creativity and development. How Has The Industry Changed? Like any industry that experiences growth with such pace, it will always lead to a downfall in sales at some point. This can partly be attributed to new technology bringing about new ways of listening to and accessing music. Another major factor has been the “resting on laurels” syndrome, which various former label executives were guilty of during the nineties. It is therefore no surprise to see that wholesale music sales from record companies have declined by twenty per cent since 1999. Delving deeper into the issue you find that the music industry worldwide, despite its obvious need to rely on imagination, creativity and openness has become as insular and self-serving as any other typical global industry. What does it say about an industry that has grown phenomenally over a forty-year period only to be brought to its knees in the space of five years? What Do These Contracts Offer? I have seen over the last few years, contracts that show a shift in power from labels to the artists. There is no doubt that certain Independent labels have always encouraged this shift but only recently have they been given more opportunity to develop and then keep hold of an artist as opposed to licensing or selling them on to the majors. Some of the important wholesale changes in contracts are documented below: - Shorter terms The lengths of contracts are far shorter than before, ranging from six months to two years. This gives both the artist and the label the chance to work together without massive demands on both sales and creative content. For example an artist could be signed to a label and record for them and then both mutually agree that they would be better off with another label. Any recording costs would be recouped from the sales of that recording in the future. This means that neither label nor artist have to experience the “limbo” situation so common in the eighties and nineties. - Royalties Royalty rates have also changed in line with industry demands. Previously a standard rate of around 14% would be offered to new artists. Due to the downturn in sales smaller labels are now offering a fifty-fifty split of all profits. This encourages a “working together” relationship between artist and label meaning that their goals and aims become synchronised. Once again this also allows artists to have more creative control and pushes the label to exploit all possible methods of promotion. Non-Label Contracts As a result of these new trends more and more opportunities are arising for unsigned talent. There are now wider ranges of companies that are offering management and recording services and sometimes publishing. Some of these companies are solely represented by a website. They will offer the artist a download slot on their site plus promotion of their music through the website. This can only be a positive effect of the changing nature of the music industry. There is no doubt that contracts in the 21st Century have become far more flexible offering new and old bands a real chance of continual and long term success. Elliot Chalmers © 2004