The music industry as a whole generates billions of dollars in yearly revenue . This revenue is generated from digital record sales, concerts and merchandise. However, in order for artist to reach the masses it often requires money for marketing and Advertisement . Now this is where record companies leverage their resources providing recording artist with financial advances , otherwise known as loans.
These loans are provided in exchange for a portion of artist proceeds. The term 360 refers to advances made to artist in exchange for a portion of revenue artist generate not just from the sale of the record, but also includes money made from concerts , merchandise, endorsement deals, sponsorships, and publishing . Artist are also required to meet a number of conditions including minimum Record sales, concert performances , promotional appearances and full repayment of the advance plus interest . Most artist are incapable of meeting these contractual thresholds often resulting in artist economic hardship rather than economic prosperity.