Music Business: The Joint Venture Deal

Joint venture deals consist of more than one music entity and can be a part of various recording contracts covered in other articles by The Civil Tune. The entities involved in the deal pool their resources in a joint venture to offset costs and maximize revenue. Profits are then split between the parties on an agreed-upon ratio. A standard joint venture involves a major and indie music label. Indie music labels prefer to manage production and outsource distribution and marketing.