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The Future of Royalty Models

Artist compensation models in the near and long term

Are current royalty models sustainable?

The global pandemic has created a dramatic shift to the current royalty models across the music and media industries, join Vistex Rights & Royalty experts as we take a look at how to survive given the current climate and what we expect to see in the months and years to come.

Revenue streams for everyone involved are changing as record labels figure out how to compensate the artist. Everyone involved has to adapt as the money stream changes due to technology and how customers choose to consume the media. Three models shape how royalties have been viewed over the years, and include:

  • Old Artist Royalty Deals
  • Profit-Share Royalty Deals
  • 360° Deals

Risk management has been a big driver in the restructuring of royalty contracts. And it doesn’t stop at just music. Sports and other traditional entertainment media like movie theatres have been affected by the current climate and COVID fallout. The creativity of a hybrid distribution model or direct to streaming is one of the many considerations facing the industry. No one knows what the coming months will look like but staying nimble and changing with the current social and economic climate is ideal for success.

The mere fact exists, artists need to be compensated. We all know by now that “Content is King” and we need a fair allocation of royalties. Artists need to be able to keep making money to produce new content. Live performances being limited is really hurting the artists right now. How artists and companies develop their deal structures will determine the future of these industries. There will need to be new ways to monetize the content. Is streaming the real future, is it live in a theatre or stadium? Or will some technology driven hybrid model take over and become the standard for future content?

It is an exciting time to see what’s happening as the gears change, technology evolves and consumer trends take off in old, new and temporary directions. Join us for this exciting conversation!