They view their masters as assets, and employ a variety of means to protect those investments and mitigate the risks associated with them. Labels invest heavily in the artists that they sign, and they take on considerable risk in doing so. The reality - as always - is much more complex. This has led many to question why some of their favorite artists have been forced into these deals. In these situations, their presence is frustrating and angering. Thinking about them in this way is apt: their presence in a recording contract insures the record company against unwanted competition.įor recording artists, they are most often an unwelcome surprise, lying dormant until they prevent the creation of new masters. Most recently, the purchase of Taylor Swift’s previous label, Big Machine Label Group, by artist manager Scooter Braun’s media company, Ithaca Holdings LLC, has given me a chance to talk about a little-known aspect of artist contracts: re-recording restrictions.įor record companies, re-recording restrictions are a bit like insurance policies: most have them, they’re rarely used, but when they come into effect, they’re incredibly important.
There have been several interesting examples so far this year.
I teach a music business class, so I’m always looking for real-life moments to bring into my lectures and group discussions.