Major labels are changing their traditional relationships with artist by implementing 360 deals. According to MTV News, 360 deals are where a label partners with the artist in publishing, merchandising and touring revenue (Montgomery, 2007). Usually the major labels benefit from the sales of recorded music. Since the decline of sales in the music industry, 360 deals have become more intuitive. If the music industry continues to struggle trying to work with technology, then it will continue to see the decline of sales. The Internet has transformed the way major labels conduct business. Therefore, it seems as if labels are constantly playing catch up. Peer to peer networks such as Napster and LimeWire continue to be a major concern for the recording industry. No one has a clear answer to whether or not labels will become outdated. The majors may not become obsolete in the literal sense, but definitely will have changed and adjusted to a point where they have more control over artist endeavors. 360 deals and the invention of the Digital Rights Movement have worked in labels favors, however; the recording industry is fighting an uphill battle with the constant change of technology.
Montgomery, James. (2007, October 16). Are radiohead, madonna, trent reznor sounding the death knell for major record labels?. Retrieved from http://www.mtv.com/news/articles/1571936/20071015/radiohead.jhtml
