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By: Erin M. Jacobson, Esq.
Frank Ocean has chosen the road less travelled for major label artists. He recently split with Def Jam, independently released his latest album, Blonde to chart success, and has refused to submit the album for Grammy voting consideration. While a major label deal was once the holy grail of industry success, what does it mean for artists in today’s industry?
Def Jam released Ocean from his deal in September 2016, a relationship described as “a bad marriage” by Spin magazine who also reported that Ocean’s release from his deal was negotiated. A condition of the split allowed Def Jam to distribute Ocean’s album Endless, while then freeing Ocean to release Blonde under his own imprint. In a recent interview for the New York Times, Ocean described his deal with Def Jam as “a seven-year chess game” and used his own money to buy himself out of his contract and reclaim his master recordings.
Ocean’s “seven-year chess game” refers to the seven-album deal structure typical for major labels. Major labels will sign an artist to a seven-album deal, meaning that the artist is obligated (often subject to pick-up options exercisable only by the label) to release seven albums with the label. This concept can be deceiving to those who don’t understand the structure because the length of the contract is tied to the number of albums released rather than a term of years. Fifty years ago the industry moved at a pace where an artist could release at least one album per year and then be done with the contract in seven years. However, artists today often take more than one year to write and record a new album, often not getting back in the studio until being on the road for almost a year after a prior album’s release. The reality of this schedule means that it often takes two years or more before a follow-up release and thus locks the artist into the contract for as long as it takes to complete the seven albums.
What is more unique about this situation is that Ocean not only bought himself out of the contract, but bought out the rights to his recordings as well. Major label (and most independent label) recording agreements stipulate that the label will own the artist’s recordings, as the label is usually fronting the money to make the recordings. Recording agreements don’t automatically come with the right to buy back masters; that clause is usually included via a good music attorney that knows to negotiate for it. However, many artists that have buy-back rights included in the contract don’t get to exercise those rights due to lack of funds. Ocean was in a privileged position in that he was able to accumulate enough of his own money to meet what was probably a hefty price for his freedom.
Ocean’s move towards independence echoes the increasing trend within the industry to control one’s own destiny and retain ownership of one’s work, a view shared by the majority of my artist clients. Today’s artists relish being independent, but the challenge is remembering that a music career is not only creative, it is also a business and needs to be run as such. Ocean seems to have that mentality. “I know exactly what the numbers are,” Ocean states. “I need to know how many records I’ve sold, how many album equivalents from streaming, which territories are playing my music more than others, because it helps me in conversations about where we’re gonna be playing shows, or where I might open a retail location, like a pop-up store or something.” This level of attention to detail is essential for independent artists looking to build a lasting career.
Ocean’s fame earned while he was backed by a major label puts him in an advantageous position because he has already accumulated a fanbase whose continued support will earn him a lucrative living as an independent artist. Artists in this position no longer need major labels because they have enough fame, opportunities, customer loyalty, and cash flow to finance their future efforts. It is much more difficult for artists still building their followings to achieve the same level of success outright, but many independent artists now look more towards making a living off of their music rather than superstardom. In today’s market, ownership and control of one’s work coupled with keeping a majority of the profits entice artists more than a major label’s deep pockets. As Ocean said:
It started to weigh on me that I was responsible for the moves that had made me successful, but I wasn’t reaping the lion’s share of the profits, and that was problematic for me.”
*This article does not constitute legal advice.
Erin M. Jacobson is a music attorney whose clients include Grammy and Emmy Award winners, legacy clients and catalogues, songwriters, music publishers, record labels, and independent artists and companies. She is based in Los Angeles where she handles a wide variety of music agreements and negotiations, in addition to owning and overseeing all operations for Indie Artist Resource, the independent musician’s resource for legal and business protection.