Artist Recording Contract - Angelfire 2025

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The percentage of revenue that each party receives is determined by the terms of the record deal. In a traditional record deal, the label may take up to 80% of the revenue generated, leaving the remaining 20% to be split between the artist and any co-writers or producers.
Such was the high-profile case of Dr. Dre, who took the Death Row Records label to court over unpaid digital sales revenue.
This week, major labels banded together to unveil a revolutionary new type of record deal: the 720 deal. It follows the same basic principles as the 360 deal, but with one groundbreaking twist: record labels are now also allowed to take a cut out of the incomes of family members of signed musicians.
Instead of netting $25 for a record, sold youd net $21.25. That still leaves you with a very healthy 45% profit margin on every record sold per my example, thats a profit of over $9.50 per record. Many artists also want to sell some records directly at a local record store.
In a traditional record deal, the label may take up to 80% of the revenue generated, leaving the remaining 20% royalties to be split between the artist and any co-writers or producers.
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