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Music: Label-Artist Contracts -Why a Seven Album Deal May Not be a Good Deal for the Artist

Written by: Michael Clark Chan

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Posted almost 3 years ago. 1 helpful vote, 0 comments

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Keep the Number of Options to a Minimum

While it may seem impressive to get an offer for a seven album deal from a record label, it may work against the artist, because if the artist does well, then the label already has the artist locked up under contract and can underpay the artist for their next album. If the artist does poorly, then the label has the option to drop the artist or keep the artist and not promote them in order to prevent another label from picking up the artist. Generally, it is best to keep the number of options to a minimum. The number of options that will be acceptable is based on a number of factors: stature of the artist, amount of money committed specifically to the artist, how well the label is established/capitalized. Typically 4-7 for a major/well-funded label. 1-2 options for a new/label with little capitalization.

Keep the time between delivery of the first album and option exercise deadline as short as possible

If the label wants additional product from the artist, then it will want to exercise its option for additional contract periods (additional albums). An artist will want to give the label as little time as possible to decide on whether to pick up the artist's next album. The label typical has an option period of 9-12 months after the release of an album to pick up the next album. An artist will want to work with their attorney to keep track of the option exercise deadline, as this may not always be a clear date.