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Music Business: The Standard Deal



Traditional or standard recording contracts are typically the recording deal that comes to mind when discussing recording contracts. These deals were the cornerstone of music label contracts because they were the only viable option for artists to have their recordings make it into record stores.


In a standard recording contract, the label owns distribution and takes ownership of the performing artist’s recordings for the duration of the copyright. The contract is based on a select number of albums and singles; any extras, such as marketing, are separate costs. To mitigate that risk, the company will recoup expenses from the artist’s royalties and use cross-collateralization to ensure the hits pay for the expenses.

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