Exclusive V Non-Exclusive Deals

Exclusive V Non-Exclusive Deals

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Exclusive V NonExclusive Deals

There are different contracts that artists sign in the industry. They range from recording agreements with record labels, licensing deals, distribution, signing up with music libraries, brand ambassadorship and endorsements etc. However, one of the things these deals all have in common is whether they are exclusive or nonexclusive.

An exclusive deal means that the service being offered is solely for and to the party it is being given to. This means that if you license your song or body of work to a distributor or a company on an exclusive basis, you cannot license the same to another distributor or third party.


A nonexclusive deal means that the service offered to a party can be provided to other parties at your discretion. It is the opposite of an exclusive deal. If you offer your image rights to a company and sign a brand ambassadorship deal, you can still serve as a brand ambassador to another brand and provide your image rights to be used by them. This is irrespective of the fact that you are still a brand ambassador to another brand.

Both deals have their advantages and disadvantages, as it is necessary for some contracts to be exclusive, while some contracts may be limiting you if they are exclusive. It is best to consult a legal practitioner before signing any deal, as one of the key terms to consider is if the services being rendered is to be done on an exclusive or nonexclusive basis.

Often, exclusive deals come with higher advances, as the nature of an exclusive agreement means you will not be able to exploit the services in question with another party, thereby shutting yourself out of future earnings. Despite this, not all exclusive deals are great, as it restricts further exploitation. When considering a contract in which services are exclusive, look at the duration and advance, as you may be stuck without further exploiting
the service with a third party.

An exclusive deal with a company that doesn’t have the proper infrastructure or ability to exploit your services properly will mean the services will be underutilised, and you will not get adequate compensation in consideration for the services provided. On the other hand, a nonexclusive deal will mean less advance, but you can further exploit it. The disadvantage with a nonexclusive deal is a devaluation of the services provided, as some companies or brands seek exclusive deals.

In conclusion, either deal (exclusive or nonexclusive) are beneficial depending on the context. Your best bet is to seek proper consultation and advice before taking any decision and weigh each on their merits.

Lastly, stay up to date with all you need to know about African music at SOA, right here.

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