As record labels continue to struggle in the face of file sharing, free music and digital music sales, Warner chief exec Edgar Bronfman explained that all Warner-signed artists will now be required to join in so-called "360 deals." Under traditional labels, bands are primarily involved with record labels for recording and sales of their albums, but touring, licensing and merch revenues are completely separated from that relationship. Conversely, under the "360 deal," the label will receive a cut of all those different areas.
It is not completely without justification labels argue, as they are responsible for marketing and promotion of the bands and advertising can boost touring as well as CD sales revenue. Still, the move is particularly controversial since it ties the label and band together so tightly and bands with established touring careers (like Warner-signee Against Me!) may be giving up revenue that the label has not really earned, some argue.