Major labels have been asking managers whether they should be striking “more equitable digital deals” via external consulting groups, according to veteran manager Scott Rodger, who handles Paul McCartney and Arcade Fire among other artists.
“You know, the major labels do this research, and I’m one of the guys they come to when they employ these consulting groups. You get asked: ‘Do you think we should be looking at doing more equitable digital deals?’,” he told Music Business Worldwide.
“Maybe on physical they’ll keep the traditional royalty model – which, on paper, is [more understandable] because it’s a crappy business involving a lot of resource and risk. But Digital is not the same. There may be a shift to do more equitable deals on streaming or downloads, but they don’t seem in a hurry… I think it will have to happen. Artists can’t survive out there.”
Quest is negotiating hard on behalf of its roster, according to Rodger. “Why would we want to take 25% of streaming revenues? We have deals for acts where they take between 60% and 90% of their digital revenues, including downloads.”
Music Ally’s next Learn Live webinar will help you understand what’s required for artists to thrive in new international markets!