The comments came during the Reinventing the Record Deal panel led by CMU’s Chris Cooke.
During his opening address, Chris described how the traditional record deal was originally structured around one revenue stream – the sound recording.
However, ‘as sound recording revenues started to decline, record companies said they couldn’t afford the risk on one income stream, meaning that other areas are growing,’ he explained.
Chris said: ‘Most labels are looking for multi-revenue stream deals when signing new talent.’
While the majority of the panel agreed that there are other revenue opportunities surrounding artists with both live gigs and merchandise, they also agreed that these opportunities were the result of great music and would be unable to stand alone.
Jim Chancellor from Fiction Records and Caroline, said: ‘When you sign an artist, you’re getting in early doors. It’s more about developing an artist a whole across different revenue streams. But you need to remember merch doesn’t exist if there is no music.’
Neil Simpson and Arwen Curson from ATC and Infectious Music’s Korda Marshall were also on the panel.