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How Licensing Deals Are Changing the Major Label World — And the Industry’s Future
For decades, major labels have owned their catalogs. That industry standard is shifting as more artists demand short-term license deals
Licensing deals also became increasingly common over the same time period, so presumably a solid chunk of the tracks in that 50% could revert to the artists that made them, slipping out of major label control. Record companies have been forced to offer artists license deals because these acts can build fan bases and accomplish so much today on their own. “The artist may have learned how the industry works, have a proven track record of financial success, and be in a position to make new demands in order for the label to keep earning on the original songs.”
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