Drake to the Bank
Canadian-born rapper Drake sold 600,000 downloads in the month of June, making him the most downloaded music from three pop charts at one time for this summer of 2009.
His current hit, “Da Best I Ever Had” is approaching #1 on many charts and is a certified summer crack bomb. With his current album release, his stock is rising quickly, but the most impressive thing about Drake is the deal he struck with Universal Music to distribute his tunes.
According to the LA Times:
“”They have given me one of the greatest situations in hip-hop,” Drake, 22, said of his team.
Under the unusually lucrative agreement he struck with Aspire/Young Money/Cash Money Records distributed through Universal, Drake received a $2-million advance. He retains the publishing rights to his songs and cedes only around 25% of his music sales revenues to the label as a “distribution fee,” his managers said. By contrast, the overwhelming majority of new artists sign financially restrictive “360 deals” that sap their touring and merchandise income and offer much more restrictive profit-sharing.
A dissection of how the rapper was able to drive such a hard bargain underscores an evolution in the music industry. At a time when CD sales have declined by 15% over last summer’s numbers and major labels remain more fixated on scoring hit singles than sustaining artist rosters, managers such as those working with Drake have stepped into the void to become king-makers in urban music.’
Read the rest of the LA Times article here.















