ARE RECORD LABEL VS ARTIST DISPUTES AVOIDABLE
Anyone with experience of the music industry will tell you that the joys and success it brings often intertwined with rifts and scandals. From diss tracks to battle raps and twitter kinds of beef, it seems as though you can’t have the former without the latter.
The most recurring type of rift or scandal occurs when artists split from their labels.
We’ve watched from the sidelines time and time again as one or both parties go at each other in the media every time there’s a ‘break up’. From Brymo and Chocolate city to Cynthia Morgan and Northside entertainment, to Kiss Daniel and G worldwide, to Vector and YSG entertainment. The list goes on.
The reasons are often unfair treatment, where artists feel like the label is bilking revenues they are entitled to, or contract breach where the label feels like the artist is not abiding by the terms of their contract.
We decided to do some digging to find out what’s causing these rifts and if it can be avoided. We spoke to label execs, artist managers and artists to try and understand what keeps going wrong.
And whilst we can’t solve all the problems that stem from the split, we did learn that lots of the issues can be avoided if labels would consider partnerships instead of ownership, it builds loyalty and fosters harmony.
However, record labels are businesses who invest in artists, and like any other business. They expect to make a return; therefore, partnerships aren’t always in their best interest, so it makes sense that any contract they draft would be in their favour. It’s down to the artist to negotiate to get what they want.
Which then begs the question, why are artists still signing to record labels and most importantly, why are they signing unfavourable contracts?
Because being with a record label accelerates artist visibility. Labels have the wherewithal to push an artist’s career faster and farther than they could on their own. And as contracts favour, whoever has leverage and the most to bargain with; labels are in a position of power especially as they are often dealing with new artists who come into the game with their talent and no knowledge of how the music industry works as a business.
So we asked label exec’s, what can artists do to protect themselves when signing to a label. The first thing is to:-
1. PUT IN THE WORK AND UNDERSTAND WHAT YOUR VALUE IS.
Before you even consider signing the dotted lines, build your fan base, rehearse, sing covers regularly, interact with your audience. Keep track of your KPI’s, know what you’re bringing to the table and why the label is willing to invest in you.
It’s also essential to begin learning about how the industry works by speaking to other artists who have been in the game longer than you. It will help you during negotiations.
2. UNDERSTAND THE SPECIFICS OF YOUR CONTRACT.
Is it a 180, 270 or 360 deal?
When it’s time to sign the contract, get an entertainment lawyer. They’ll help you understand what the contract requires of you. And point out clauses (buy out, key person clause) to negotiate favourably.
Clauses can override one another. For example, if a contract is set for five years but requires you to deliver ten albums, you’ll need to fulfil both. If you stay for five years and only release eight albums, the label can hold on to you, till both terms are fulfilled.
3. KNOW WHERE THE MONEY IS GOING
Understand that whatever money a label gives you is an advance (a loan). They often recoup their money back first before you can start earning, which is why you must know how every penny spent on your brand are used. Ask for the power of authorisation before any major expense decision is made on your behalf. Reasonable music video costs add up, and it comes out of your revenue.
4. THE LABEL OBLIGATIONS SHOULD BE SPELT IT OUT
Just like yours, everything that the label is required to do for you should be set out in the contract, so that if they’re in breach, you can renegotiate or have the option to leave.
Which brings us to a critical one
5. ALWAYS HAVE AN EXIT CLAUSE
Include an exit clause and a written release agreement that dictates the terms under which you can leave. It should consist of what you can leave with, what you can and can’t do when you leave and how much, (if any) you have to pay the label back.
6. ASK QUESTIONS
Who is on your team? Who owns your masters and royalties? What percentage of revenues outside of music do labels have ownership to – i.e. endorsements?
Can you sign international deals? Is there an allowance for growth? If you become the most prominent artist on the label, can you renegotiate your contract based on your success?
7. BE WILLING TO WALK AWAY.
Don’t be so desperate to be signed to a record label that you sign a deal that could potentially turn you into a famous, talented slave. Do your due diligence, and make sure that you’re getting the best deal for you. If not, be willing to walk away and hope for something better. To avoid stories that touch.
Lastly, stay up to date with all you need to know about African music at SOA, right here.
RECORD LABEL VS ARTIST DISPUTES
