Question

Today major recording companies and a few independents are exploring a new type of business relationship known as _____, in which artists share with their label their earnings not just from album sales, but from concerts, merchandise, and other sources as well.

a) Traditional contracts
b) 360 deals
c) Independent contracts
d) Royalty-based contracts

Answer 1

360 deals are a new type of business relationship in the music industry where recording companies receive a percentage of an artist's earnings from various sources.

Step-by-step explanation:

The correct answer to the question is 360 deals. A 360 deal, also known as a 360-degree contract, is a type of contract in the music industry where recording companies receive a percentage of an artist's earnings from various sources, including album sales, concerts, merchandise, and more.

This type of contract allows the label to have a stake in the artist's entire career and not just their music sales. It has become more prevalent in recent years as artists seek to diversify their revenue streams.