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Behind the Music: Jeff Robinson on the 360 Deal

Contrary to belief, Jeff Robinson is not some new jack in the biz. Back in the day, Robinson got his feet wet on the front lines of MCA’s  legendary Uptown Records helping to usher in an era of New Jack Swing artists, including Guy. Fast-forward years later, and the CEO and president of My Brother’s Keeper (MBK) Entertainment is responsible for the illustrious career of one of music’s elite and award-winning vocal powerhouses, Alicia Keys, an artist who has since expanded her brand to include acting, directing and other ventures.

As part of our continuing coverage of the business of music for Black Music Month, BlackEnterprise.com tapped into JR’s mind about the perils of the artist 360 deals, what every aspiring artists needs to know before signing on the dotted line and the future of the music biz.

As the mastermind behind Alicia Keys, you’re very much a behind-the-scenes label executive. Why?

(Laughs) Yes, I’m old school in that I’m all about pushing the artist. I am her manager, and she’s also signed to my label MBK [My Brother’s Keeper] Entertainment, which people often forget.

You’ve been adding to MBK’s roster of incredible talent. Who’s new?

I love the group of artists I’ve gathered under me right now. This is the happiest I’ve been in three years in this business. Elle Varner, a new solo artist who plays guitar, new album is shaping up to be a classic. I wouldn’t be surprised if there isn’t Grammy-talk surrounding this project from the gate.  Also excited about signing Gabi Wilson to my MBK/J Records label and without a doubt, she’s the most all-around talented young artist I’ve ever had the pleasure of working with and it’s going to be a joy to watch her develop into the princess of this business. She plays five instruments, writes, produces, sings and acts. Fame is a talented rapper and singer and natural born star who will release a mixtape called “Hybid Season,” while Allen Stone is a genius writer who, when you close your eyes, makes you think Stevie Wonder is in the room, and Anthony Hall has that Jack Johnson/ John Mayer kind of vibe.

Lately, there’s been enough discussion about record company’s issuing 360 deals to new artist. What does that entail?

Nowadays, record companies are pirated by technology, allowing people to get music for free, so they are losing money. The 360 deal offers a label the ancillary rights to an artist’s other revenue sources. The feeling is that if the label is contributing to making an artist an established brand, then they should participate and [benefit] from that artist’s income sources–such as merchandising, film, television, concerts and touring. They want to make money [off those things] also.

As an artist manager and label owner/executive, what is your stance on the 360 deal?

Recently, I signed a couple of my new artist to 360 deals, but I am a huge opponent. Here’s why: If the label is going to act as a true partner and help promote a tour or secure film and television opportunities for an artist, then by all means they’re entitled to a percentage. If not, you’re simply taking advantage of the artist. If I can sell my merchandising, why should I give you 2% of publishing for free? You’re not even the one securing a publishing deal. I don’t understand it.

Hypothetically, how much might a new artist walk away with if he has such a deal?

Let’s say you have an artist who is signed to a label. The label may ask for 25% of that artist’s ancillary rights, meaning whatever he or she does outside of singing on a record. So

if that artist goes on tour, he or she has to give 20% to 25% to a lawyer and 5% to 10% to their business manager. Add that up and that can be more than 50% to 55% that the artist owes from their earnings before they see any income. This is what’s wrong with the 360 deal. It’s so unfair and handicaps the artists [financially], but adds more money into the label’s purse.

As a label owner are you saying record companies are the Big Bad Wolf?

I am in no way saying that record labels are the devil or evil because the industry has been good to me, so that would be ridiculous for me to say. However, I saw what was going to transpire and heard the rumblings early on about which direction the labels would be taking to ensure profits. I even tried to form a coalition between me and about three or four of the most powerful managers in the industry to say we should stand together to protect our artists. Unfortunately, no one saw the vision and everyone wanted to continue to do their own thing. I guess they thought the gravy train would last forever.

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Would established artists like Alicia Keys or Beyonce be subjected to such a deal?

If you’re an Alicia Keys, Beyonce or a Jay-Z, you already have the leverage as an established artist to refuse such a deal. As an artist increases his or her worth and value, they can enter negotiations that will prove more beneficial to them.

Considering the economy, is this the prime time for an indie artist to thrive?

Yes and no. I like to use the example of a big army moving through swamps with a huge tank versus a smaller guerrilla-style militia with no big

machinery. They are able to move quicker and their approach is less cumbersome. The truth is, to reach a worldwide platform you need that label machine that has arms everywhere. The great thing about an indie artist is that he or she can do albums without being wasteful. That artist can get distribution on iTunes and sell 150,000 records and recoup 100% profit. You don’t have to sell a gold or platinum album to make money.

So will there be a changing of the guard in this music industry?

You’re gonna see the rise of the independents. Right now, there are three big labels selling off pieces of Warner Bros, Universal and SonyBMG. Everything is condensing because people are starting to figure out there are other ways to scout talent that already have a built in following. An artist with a million hits on YouTube will be noticed by labels.

How does an artist stay relevant in this fickle industry?

The key for an artist to stay relevant is staying in touch with the people! Not living in a bubble in a grand mansion on a hill and forgetting how you got there. For example, it’s hard for rappers to rap about the hood when he’s lived in rich neighborhoods for the past five years.  It’s also equally important to stay abreast of all the [daily] technology changes. [Nearly] 60% of the Web can be accessed through smart phones now including music. In fact, you may be holding the new record company in your hands right now. (Laughs). Also every artist needs a great marketing person and someone who has connection with radio, which is the chief asset of any artist nowadays.

How has the biz evolved since the era when labels had Black Music departments?

One thing is that we don’t have a lot of great R&B music today. Who is our Teddy Pendegrass? Curtis Mayfield? We’d be hard pressed to find that next timeless artist. I’m a staunch believer in artist development. It took seven years before Alicia Keys was introduced; she was no overnight success, we worked hard and her success is a testament to that artist development. I want to do classic albums because your fans will grow old with you. We need to stop looking for the flashy and find and nurture those artists who make true music and will be able to tour into their 60s like an Elton John.

Indeed. What’s in store for MBK’s future?

I started a gospel label with my brother Conrad Robinson called Glory 2 Glory (G2G) and our first release is this incredible group from the Bronx called Livre.  I believe in giving back to God and spreading the message of Jesus Christ. I just sold a film I co-produced to Focus Feature Films called Pariah. I’m planning on shooting more films,  maybe even one this summer. I have a great passion to conquer the “Hollyweird” world as I have done in music.

When all is said and done, what do you hope folks will say about Jeff Robinson?

I want to be remembered as the man who helped to create giant brands for all of those who worked with him and sit back and smile as they blossom from scared kids to giants in this business. So yeah, I’m going to buy that house on a island, sit in my chair by the ocean and grin like that cat in Alice in Wonderland when I think about it all. Then I can say, “Yeah, it’s been a pretty great life after all. It wasn’t an opening act or a guest star, but simply the whole f—– show!”

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