August 03, 2010

By By Glenn Peoples

BPI?s numbers from yesterday showed how little money is being made in the U.K. from multi-rights (a.k.a. 360-deals). According to the press release, ?more than ?58.6 million? was earned from multi-rights deals. Let?s call it ?59 million, or about $110 million.

Total U.K. recording industry revenue in 2009 was ?1.12 billion ($1.87 billion), meaning revenue from multi-rights deals accounted for 5.2% of recording industry revenue last year. Since these contracts are not standard outside of major labels, let?s take away 20% from recording industry revenues (the indies? share) and recalculate. In that case, multi-rights revenue accounted for 6.5% of associated recording industry revenues.

While only accounting for 5.2% now, that?s not to say multi-rights deals won?t start providing a far more considerable source of revenue in the next few years. As artists under these contracts reach market maturity, their non-music revenue will increase along with music sales.

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