United States: What’s the Big Deal? (Part Two)

In my previous article, I discussed some of the changes that have occurred over the past couple of decades in the music business. I also pointed out how the music business has evolved relative to how deals have been structured the past couple of years and the way deals are being written today. I also provided some insight into how record companies think—where they’re coming from—and how the way they do business might affect you. Additionally, I offered some suggestions on how best to protect yourself—how to look out for not only often overlooked deal points in your contract negotiations—but your career in general.

In this second part, on the same subject: deals, I will address future changes. In other words, I want to give you a glimpse of what will be the next evolution in the way the music industry does business and how those changes might impact you. I will also make recommendations on how to prepare for such "right around the corner" changes and those soon to take place.

Many of the most recent changes to which I’m referring are creating controversy, confusion and needless to say, legal disputes. Thanks to the advent of the Internet and related technological advances, we now have new areas of concern to address. However, these new changes can be a bonus—none of them need to create problems so long as you become knowledgeable about them and how to address them when you’re entering into any recording contract. This holds true whether you’re a one-person act or a band.

INTERNET ACCESS: You may or may not know that today most record companies have set up working relationships and affiliations with Internet sites such as MP3, Napster, Press Play and others. Look hard and long at any clauses and stipulations in your contract to make certain that if your record company is making your music available at any of these Internet sites that you’re given fair compensation.

WEB SITES AND URLS: Keep as much control as possible of how you’re presented on Web sites and URL’s. Nearly every record company wants to own and control your official Web site and how they present—advertise and publicize you—is critical to your image and your peace of mind. Naturally, you want as much exposure as possible but it is how they choose to feature you that matters, and something about which you want to have a say. Don’t be afraid to ask to approve all copy, visuals and placement of such before such information is posted on their label site. Moreover, if you have a new release you may want to ask to be given optimum exposure—like be featured on the label’s home page or on their affiliated Internet ventures such as AOL in the case of AOL Time Warner, for a given amount of time. When considering other details along these lines, don’t forget to insist on continuing to own your domain name and/or your individual Web site. As you go about crafting your contract be sure to include clauses that allow for additional reversion of rights—both artistic and ownership rights—relative to the Internet. Leaving these very crucial details out can one day prove disastrous!

ARTISTS’ RIGHTS: Some artists and bands record material that is never released or no is longer in print (not available). It used to be that you were out of luck; that the record company had control over such products. But, one of the changes now taking place is that artists and bands, and artists’ unions such as AFTRA, are asking for contract clauses that allow artists first right of refusal, or reasonable access to these products. When you think about it: your initial contract called for payment out of your proceeds for these record materials, so in effect, you’ve paid for them. Now, make sure you have access to them.

PERKS: Another interesting change is that artists and bands are asking that medical insurance be included as a perk in their contracts. It’s becoming more and more popular in recent deals but an added incentive most people don’t think to ask for. AFTRA has some provisions for health insurance but the coverage you can get through a record company is often better.

NEW LAWS: Although I plan to cover new legislation in my next column, and how the new and changing laws will impact your contracts, be aware that currently there is a dispute in California over whether a record company should be allowed to tie up any artist or band for more than seven years. There has been intense debate over this issue, and much controversy but if the new law passes it will affect the entire record industry. Why? Because most often whatever California does the states in the rest of the country follow suit. Whether it passes or not, don’t bind yourself for such a long period of time that you don’t have other options if you want and need them. After all, you can always re-sign with your existing label if you’re happy.