The Case for More Transparency in Music

The case for transparency

Not too long ago, I met with the head of one of the major record labels. We talked about how music’s cultural influence still outweighs its monetization. The industry’s goal is to close that gap.

We discussed fantasy sports for music, an effort that hasn’t reached mainstream adoption despite several available options. One challenge is that music lacks the objective, easy-to-measure, head-to-head competition that’s foundational for fantasy games.

Sure, music has weekly sales charts, but they made more sense when sales were actual album sales. The moving goalpost of “album equivalent units” doesn’t translate well to fantasy. Imagine losing a fantasy matchup because some of Travis Scott’s bundles from his ten-year-old mixtape were disqualified. People would flip out.

Similarly, award shows are quite competitive but far too subjective to build a mainstream, gamified product on top of.

There are other ways to grow the pie that don’t involve difficult dynamics. The lowest hanging fruit may be from sharing what already exists but is rarely disclosed in public. This is a pitch for more transparency on artist deal terms.

Knowledge is power (and money)

Historically, executives keep artist deal terms close to the chest, like Coca-Cola protecting its classic formula. Most employees at the labels don’t even know the details. Only those who saw the signed contract will know for sure.

When record deal terms do come out, they’re leaked in vague phrasing, like Drake’s “LeBron-sized” deal or Taylor Swift’s “skinny distribution charge.” Or, a tell-all lawsuit from an act that claims they were underpaid by their former label.

But unlike Coke’s formula, the music business has more to gain and less to lose from sharing its deal term numbers. Transparency would increase understanding of the business among leaders both inside and outside the industry. Internal talent can better do their jobs, and more top-caliber external talent would be attracted to the business. In turn, this would bring in more money, which would increase the value for all stakeholders.

We’ve seen it happen in sports. The money in most leagues has grown exponentially in recent decades. One reason is the public discourse on economics, especially in the age of social media, advanced analytics, and increased public interest in culture-oriented businesses.

Every NBA and NFL player contract can be found online in a few seconds. The most tapped-in fans have a clear understanding of the revenue share splits between leagues and players, the latest collective bargaining agreement terms, how the NBA’s ‘second apron’ works, and the winners and losers of the latest broadcast rights negotiations.

Music has a lot of that same “prosumer” potential that sports does. The deal structures are fascinating for recorded music, publishing, and live music. Any time info gets leaked, fans clamor for it.

How much money did this album cost to make? How long until the label and artist break even? Is the artist on track to recoup their advance? What’s the return on investment from all the marketing and promotion?

If you’re in positions like mine, you hear the details because its part of the job. But this isn’t about me. This is about others who would benefit from some of those off-record terms shifting to on-record reports.

The real leverage is the execution

When the case for transparency has come up before, I hear two common pushbacks. The first is that music deal terms are complex and confusing—hence the abundance of lawyers in leadership roles to review contracts. Sure, there’s a learning curve like in any industry, but let’s not act like this is rocket science.

The second pushback is that music companies would lose leverage with artists and competitors if their deal terms were public, but I disagree. The exact opposite has happened with music rights and catalog sales. The publicized deal terms have attracted more interest and money.

The music investment firm Hipgnosis Songs Fund received polarizing responses from many in the industry for its nonstop press releases about the catalogs it acquired. But a less discussed benefit of the Hipgnosis megaphone is the attention it raised for music royalties as an attractive asset class. The billions of dollars that private equity firms and banks have since invested in music is a direct result of the buzz created by these deal announcements.

The same could be true with deals for future releases and shows. For instance, Kendrick Lamar is on an all-time run right now. After the Super Bowl, he will likely become the first solo rapper ever to do a worldwide stadium tour. I’ve also heard rumors that he recently re-did his deal with his longtime partners at Interscope Records which includes a nine-figure advance. The terms of these deals would attract interest in the same way that the massive catalog sales and pro athlete max contracts have done.

I get that some artists don’t want their financials out there. There are understandable safety concerns. But this isn’t about artists flaunting money on Instagram and posting their location. We’ve seen how that can lead to violent incidents. This is more about the news and announcements, which don’t need to come from the artists themselves.

The case for transparency is also a reminder about how leverage really works. Labels don’t gain competitive edges by withholding deal terms. That may have been effective in the 20th century when gatekeepers had more power, but not today. Leverage now comes from execution. It’s about maintaining strong relationships, and trust, and over-promising on what’s delivered.

Transparency’s goal is to create more leverage, not less. Especially since everyone’s goal is to grow the pie in a way that serves artists, fans, and the music community.

Chartmetric Stat of the Week - Oasis

Ever since Oasis announced their 2025 reunion tour, the band’s streaming numbers have spiked. On August 24, a few before the news broke, their Spotify Monthly Listeners were 21.5 million. One month later, it jumped 52% to 32.7 million by September 24. It has since leveled off, but I bet it may spike again next year as the tour grows.