TILL DEATH DO US PART: PERPETUITY VS SHORT-TERM LABEL DEALS
The music industry is full of horror stories, but few are as infamous as the tale of the perpetuity deal — that delightful little clause that ensures a label owns an artist’s masters until the heat death of the universe.
For decades, artists have fought tooth and nail to reclaim ownership of their music, while labels, ever the pragmatic capitalists, have dug in their heels, arguing that long-term ownership is simply a fair return on investment. So, which side is right? As with most things in the music business, the answer is complicated.
WHAT IS A PERPETUIITY DEAL? (AND WHY DOES IT MAKE ARTISTS WANT TO SCREAM?)
A perpetuity deal is a record contract in which the label retains ownership of an artist’s master recordings forever. Not for 10 years. Not for 30. Forever. That means if an artist signs this kind of deal at 22, their label still controls their music when they’re 92 and trying to remember where they left their dentures.
The idea is simple: the label takes the financial risk, investing in recording, marketing, and distribution. In return, they keep the masters indefinitely, continuing to profit off the music long after the artist has stopped making music — or breathing.
From the artist’s perspective, this is the ultimate nightmare scenario. Artists like Prince, Taylor Swift, and Raye have all gone to war over their masters, realizing (sometimes too late) that handing over ownership meant giving up control of their own legacy. And yet, perpetuity deals persist, particularly with major labels that have the muscle to turn artists into global stars.
THE CASE FOR SHORT-TERM DEALS: FREEDOM, CONTROL, AND (EVENTUALLY) PROFIT
On the other side of the spectrum, we have short-term label deals — contracts that expire after a set number of years, at which point the artist gets their masters back. These deals have become more attractive in the streaming era, where owning one’s catalog can mean steady revenue for decades. Just ask Kate Bush — who owned her masters and cashed in big-time when “Running Up That Hill” had a resurgence thanks to Stranger Things. Or Metallica, who regained their masters and now reap the full rewards of their music’s longevity.
Short-term deals make sense for artists who want to retain control of their music, especially those with an existing fanbase and leverage. They’re also becoming more common, as streaming platforms or, God forbid, social media like TikTok, have allowed independent artists to reach global audiences without the traditional label machinery.
SO, WHICH ONE IS BETTER?
As much as we’d love a simple answer, the truth is it depends.
If an artist is just starting out and needs a label’s financial backing, marketing, and industry connections, a longer deal with major (not necessarily the label one) support can be a necessary evil. After all, labels aren’t charities — they want a return on their investment. If they’re spending millions launching a career, they’re going to want something substantial in return.
For established artists, shorter-term deals (or even going fully independent) are almost always the smarter move. Why let a label own your music forever when you already have an audience and distribution options?
The size of the artist matters, too. A small indie act might be better off self-releasing and retaining control, while a superstar-in-the-making might actually benefit from a bigger label’s deep pockets and global reach — if they can negotiate a fair deal. I only wish artists seeked external advice before defining which tier they belong to — no decent record label would share a small act’s vision of themselves being a superstar-in-the-making.
INDUSTRY TRENDS: ARE LABELS LOOSENING THEIR GRIP?
The good news? The tide is shifting. Perpetuity deals are not as common as they once were, thanks to increased artist awareness and growing legal scrutiny. In some countries, legislation is being proposed to prevent such contracts from existing at all.
Meanwhile, many artists are ditching labels entirely, choosing to distribute music independently or partner with label services companies that offer funding without demanding ownership. Platforms like TuneCore and DistroKid allow artists to upload music to Spotify, Apple Music, and beyond — without handing over their souls in the process.
That said, big labels aren’t going anywhere. They still dominate the charts, control major playlisting, and have the resources to make an artist a household name. If you’re an artist who wants the biggest possible push, chances are you’ll still have to dance with the devil — but at least now, you can negotiate how long you’ll be dancing for.
FINAL THOUGHTS: CHOOSE WISELY, READ THE FINE PRINT
Whether you’re an artist or a manager (hi, fellow managers — we suffer together), the key takeaway is this: know what you’re signing. Perpetuity deals might work in certain situations, but they’re usually a bad idea for artists who make steps alone or who prioritize long-term ownership control over possible actual boost. On the flip side, short-term deals give more freedom but might mean less investment and involvement.
At the end of the day, the best deal is the one that aligns with an artist’s career goals. And no matter what — hire a good music lawyer, don’t just ask your wife for advice. Because if history has taught us anything, it’s that record labels are really, really good at looking out for themselves, and artists are often really bad and careless at this.