A new online record deal simulator has been launched to help artists, managers, and labels model deal options and forecast profits.
Record Deal Simulator is free and allows users to enter streams, deal options, advances, recording costs and more to reach an estimated profit for both artist and label.
The service has been created by CreateOS, an operating system for artist management. It’s been gaining traction online amidst an ongoing conversation about record and publishing deals sparked by a recent series of statements from Kanye West who is currently in a label dispute.
Music business and tech expert Cherie Hu has used the simulator to dig into Kanye’s deal a little deeper through this Twitter thread.
now let's plug in Kanye's contracts.
his sixth album was a 50/50 net profit split deal with an $8M advance (which is big!) and a $4M "recording fund." UMG took a ~25% "distribution fee."
with no marketing costs, Ye still needs to generate 3.2B streams to make $1 in royalties. pic.twitter.com/UuCj7qW45O
— cherie hu (@cheriehu42) September 24, 2020
Since launching, many have praised the service online for simplifying what can often be a confusing process for young artists and managers.
everything needs to be rebuilt from scratch https://t.co/meU2MHESAg
— ?st (@questlove) September 24, 2020
Play around with the Record Deal Simulator here.
