Classical 360

We have recently started seeing the introduction of deals with musicians that are referred to as 360 deals. Instead of the record label just selling cds of the artist, labels and other companies are getting into more aspects of the artist’s career and making money from a variety of revenue streams. We have seen this happen with artists such as Jay-Z. Now we are seeing it happen with a classical musician.

Katherine Jenkins has just left Universal Classics & Jazz for a deal with Warner Music Entertainment. Ms. Jenkins is a mezzo soprano and has widespread fame in the United Kingdom. This new deal will not only encompass recordings, but also sponsorships and merchandise.

So, what is in it for Katherine Jenkins? Is it really wise to give up portions of her revenue streams to Warner? Will Warner offer enough of a benefit to where Katherine’s overall sales would increase, making her more money than a non-360 deal would include?

It appears that this deal has serious potential. First of all, Warner is setting Ms. Jenkins up with the producer David Foster, who has worked with a number of artists including Celine Dion, Seal, Michael Buble, and Josh Groban. Apparently, this would not be possible without working with Warner. In addition, Warner will take over her website which will be more of a “one-stop-shop” for her fans, and will offer the chance to purchase tickets and merchandise and also contain exclusive up to the minute content.

In the words of Warner Music Europe president John Reid, “By more closely aligning the interests of artist and label we can take an holistic approach to building on her massive success and broadening her relationship with her ever-expanding global fan-base.”

It is interesting to see the 360 deals move to new genres of music. We’ll see if a 360 deal for a classical musician can be lucrative for the label and the artist.

Stay tuned,
Erik
erikrostad.com