In plain English

A joint venture deal replaces the traditional royalty structure with shared ownership. Both parties contribute (the artist provides recordings, the label provides funding and distribution), costs are deducted first, and net profits are split, often 50/50. The artist retains a meaningful ownership stake.

Why it matters

JV deals are more transparent than royalty deals because you share in actual profits rather than receiving a royalty percentage on a negotiated base. The risk: if the definition of 'costs' is broad, profits may never materialise.

Where it can land

The same clause is drafted three ways. These are the positions we see, worst first, so you can tell at a glance which one is in front of you.

Read next

• RecoupmentThe label recoups its advance from your royalty share, not from its own margin, before you see any money.
• Audit RightsYour right to inspect the label's financial records to verify royalty calculations are correct.
• Accounting PeriodsHow often the label calculates and pays royalties, and how long they have after each period to actually pay.
• Master Recording RightsWho owns the actual recorded version of your music, one of the most valuable assets in music.