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Don't wait 0:00:30.080 --> 0:00:33.519 any longer, speed up your hiring right now with Indeed, 0:00:33.960 --> 0:00:36.200 and listeners of this show will get a seventy five 0:00:36.280 --> 0:00:39.440 dollars sponsored job credit to get your jobs more visibility 0:00:39.600 --> 0:00:45.320 at indeed dot com slash pod Katz thirteen. Just go 0:00:45.360 --> 0:00:50.120 to Indeed dot com slash pod Katz thirteen right now 0:00:50.479 --> 0:00:53.040 and support our show by saying you heard about Indeed 0:00:53.080 --> 0:00:57.400 on this podcast. Terms and conditions apply. Hiring Indeed is 0:00:57.440 --> 0:00:58.040 all you need. 0:01:19.600 --> 0:01:24.280 Jay, Welcome to the Earn Your Leasure Podcasts. I want 0:01:24.280 --> 0:01:26.080 to give a quick background story of how this all 0:01:26.120 --> 0:01:28.559 got started. So first off, my name is Rashad Balau. 0:01:28.640 --> 0:01:33.520 For anybody that doesn't know me, but my partner Troy Millings. 0:01:32.760 --> 0:01:37.640 So anybody that's been following me for the last year 0:01:37.680 --> 0:01:39.920 and a half on Instagram. You know, I post content 0:01:39.959 --> 0:01:43.440 about different financial topics, but I kind of take a 0:01:43.480 --> 0:01:46.200 different approach to it. You know, I talk about you know, 0:01:46.360 --> 0:01:49.280 sports and entertainment, kind of the backstories that a lot 0:01:49.320 --> 0:01:51.240 of times people aren't familiar with them may not know, 0:01:52.000 --> 0:01:55.520 and also different you know, business models and different businesses 0:01:55.600 --> 0:01:59.360 and investments and stuff like that. So Instagram has a 0:01:59.400 --> 0:02:01.480 format where you only put up one minute video. So 0:02:01.520 --> 0:02:03.760 a lot of people was asking me, you know, when 0:02:03.760 --> 0:02:06.120 am I going to do a podcast or you know, 0:02:06.280 --> 0:02:10.840 they want an extended version of the conversation. So I 0:02:10.880 --> 0:02:13.120 thought that it would be a great idea to have 0:02:13.200 --> 0:02:15.760 this podcast. And then when I was thinking about the podcast, 0:02:15.840 --> 0:02:20.639 you know, I wanted to have a partner, and my partner, Troy, 0:02:21.160 --> 0:02:24.240 I thought would be a perfect pick because he's actually 0:02:24.280 --> 0:02:27.679 somebody that you may not be familiar with if you 0:02:27.720 --> 0:02:29.920 follow my Instagram, or you may be familiar with. But 0:02:30.680 --> 0:02:33.959 so I teach a financial literacy class to kids, and 0:02:34.040 --> 0:02:36.120 he's the one that actually got me involved with that. 0:02:36.160 --> 0:02:38.360 I actually teach his classes, his class that I teach, 0:02:38.919 --> 0:02:41.680 and also a lot of the stuff that I post 0:02:41.800 --> 0:02:46.800 on Instagram comes from conversations that me and him have 0:02:47.240 --> 0:02:50.480 and has been having for a very long time. We 0:02:50.520 --> 0:02:52.960 always have conversations about a lot of different stuff, So 0:02:53.480 --> 0:02:57.280 I wanted to, you know, share our conversations to the 0:02:57.320 --> 0:03:00.680 world and have it a on a on a scale, 0:03:00.760 --> 0:03:02.600 so it's not just me and him in his living 0:03:02.680 --> 0:03:05.760 room anymore. Yeah, it's put an internet to his So 0:03:05.919 --> 0:03:07.760 that's kind of backstory. So Troy, you want to give 0:03:07.800 --> 0:03:08.680 your perspective on it. 0:03:08.760 --> 0:03:11.800 Yeah, I mean pretty much what Rashad is saying is 0:03:12.040 --> 0:03:15.480 one hundred percent accurate. We've we've had conversations for so 0:03:15.480 --> 0:03:18.080 many years, I think over twenty years of conversations, and 0:03:18.800 --> 0:03:20.720 over the past few years, we've seen some of those 0:03:20.760 --> 0:03:22.360 conversations turn into realities. 0:03:22.840 --> 0:03:24.639 And it was like we. 0:03:24.560 --> 0:03:27.720 Thought the conversations that we were having were almost commonplace. 0:03:28.000 --> 0:03:31.360 And what we started to notice is that these conversations 0:03:31.400 --> 0:03:32.639 aren't happening, especially in. 0:03:32.600 --> 0:03:36.880 Our community and the communities throughout the country. 0:03:37.640 --> 0:03:40.440 And that was evident when we saw the content that 0:03:40.480 --> 0:03:42.000 you were putting up on your page, and it was 0:03:42.000 --> 0:03:44.640 the feedback was just so amazing, like, thank you so 0:03:44.720 --> 0:03:47.360 much for the education, and I never knew that, and 0:03:47.400 --> 0:03:50.600 we started looking at ourselves like, wait, they didn't know that. 0:03:50.680 --> 0:03:53.960 I thought people knew that, So there was definitely a 0:03:54.000 --> 0:03:58.119 need there. And Earn your Legion podcast is now live. 0:03:58.200 --> 0:03:59.640 Oh we got talk about the name to earn your 0:03:59.680 --> 0:04:01.960 leaders anybody that follows me. That's like my hashtag that 0:04:02.000 --> 0:04:04.120 I've been using for a while, earning your Lesia. And 0:04:04.360 --> 0:04:06.520 Troy actually came up with that hashtag that he thought 0:04:06.560 --> 0:04:08.800 that that was a good hash I was trying to 0:04:08.800 --> 0:04:10.400 think of something to come up with, and he thought 0:04:10.440 --> 0:04:12.240 that that was perfect as far as earning your Lesia. 0:04:12.360 --> 0:04:14.960 Yeah, man, that that Let's give him the whole story, right, 0:04:15.000 --> 0:04:17.680 Like so like the conversation that we said, like that 0:04:17.760 --> 0:04:21.360 just happened. From that conversation, it was like you had 0:04:21.440 --> 0:04:26.120 just started that. Listen, I have an avenue now through Instagram. 0:04:26.279 --> 0:04:28.919 Let's take them even further back. Let's take it because 0:04:29.600 --> 0:04:29.919 part of. 0:04:29.880 --> 0:04:32.040 The reason I was like, that's a great idea is 0:04:32.080 --> 0:04:34.800 because people miss the hard work that goes prior to 0:04:34.839 --> 0:04:37.880 this this moment right here. So we've been in that 0:04:37.920 --> 0:04:40.600 classroom in the summers from our program and we'll talk 0:04:40.600 --> 0:04:43.760 about the program later on, but for eight years now, 0:04:43.800 --> 0:04:46.000 maybe nine years, right, we've been in that classroom and 0:04:46.040 --> 0:04:49.520 The original thought was, Hey, I know that finance is 0:04:49.560 --> 0:04:50.360 something that. 0:04:51.800 --> 0:04:52.599 Is not being taught in. 0:04:52.600 --> 0:04:56.679 School, and I knew that you are a financial advisor 0:04:56.720 --> 0:04:59.960 obviously as my best friend, we knew that that too. 0:05:00.200 --> 0:05:02.760 We should link those two things, right, Like, you teach finance, 0:05:03.279 --> 0:05:06.000 I'm an educator. Let's link it to and at first. 0:05:06.160 --> 0:05:07.760 And I think you put that into folks, and I 0:05:07.760 --> 0:05:09.440 thought that was really honest with you. It was like, 0:05:09.920 --> 0:05:11.760 it's not the easiest thing to do. I think people 0:05:12.160 --> 0:05:15.760 under depression. Like if I teach, if I teach kids 0:05:15.800 --> 0:05:18.320 and I can teach anybody, or if I've never taught 0:05:18.360 --> 0:05:20.800 kids before, I can get in the classroom. 0:05:20.440 --> 0:05:22.360 And do it. And you were very honest about that. 0:05:22.440 --> 0:05:24.679 It was like, you know, this is difficult, like this 0:05:24.720 --> 0:05:26.919 is not for me, but to your credit, man, you 0:05:26.920 --> 0:05:30.680 stuck with it, and now you can see that the 0:05:30.800 --> 0:05:33.480 education that you're giving to these kids is something that 0:05:33.560 --> 0:05:35.640 they're going to take with them for a long time. 0:05:35.720 --> 0:05:38.120 And now the world gets to see it on Instagram 0:05:38.279 --> 0:05:39.720 like some of the word we've been doing. But it's 0:05:39.760 --> 0:05:44.880 been eight years and that's how your leisure comes comes about. 0:05:44.640 --> 0:05:46.800 For sure, for sure. So that's where we're at right now. 0:05:46.800 --> 0:05:49.159 To Earn Your Leisure podcasts, And like I said, before 0:05:49.160 --> 0:05:51.920 we go into it, the Earn Your Leasure podcast will 0:05:51.960 --> 0:05:56.000 be giving you behind the scenes look at financial deals 0:05:56.040 --> 0:06:00.200 and the entertainment, sports business, different fields, and you know, 0:06:00.200 --> 0:06:02.240 we're going to try to make it exciting. A lot 0:06:02.240 --> 0:06:04.560 of times people have an idea of business that is 0:06:04.560 --> 0:06:07.440 boring or over the head. It's not either one. So 0:06:07.600 --> 0:06:09.720 that's kind of, you know, the reason why we wanted 0:06:09.720 --> 0:06:11.920 to start this, you know, to kind of bring it 0:06:12.160 --> 0:06:15.480 to light and make it fun and make it understandable 0:06:15.480 --> 0:06:19.240 and make it relatable. So yeah, so let's jump right 0:06:19.320 --> 0:06:22.480 into it, jump right into it. So you know, I 0:06:22.520 --> 0:06:27.160 took notes. I took notes. I'm prepared. So we're gonna 0:06:27.200 --> 0:06:30.360 start with the music industry because both of us are 0:06:30.480 --> 0:06:31.320 huge fans. 0:06:31.600 --> 0:06:33.839 I think the music raises us, I would say, right, Like, 0:06:34.279 --> 0:06:36.520 I think we used to get into debates about did 0:06:36.520 --> 0:06:38.160 we learn more from the music did we learn more 0:06:38.160 --> 0:06:41.000 from school? And I mean i'd say it's equal, right, 0:06:41.000 --> 0:06:43.520 Like some of the lessons that we learned from listening 0:06:43.560 --> 0:06:47.120 to Nas and Jay and Big to a certain extent, 0:06:48.120 --> 0:06:52.080 we still apply those lessons today. So one of the 0:06:52.080 --> 0:06:55.000 things that I heard from one of my favorite albums. 0:06:55.520 --> 0:06:58.040 Jay Z's last four or four album was you do 0:06:58.160 --> 0:07:01.839 still signing deals still? After all they done stole for real, 0:07:01.920 --> 0:07:04.640 after what they did to all Laurence Hill, And I realized, like, 0:07:04.680 --> 0:07:07.080 certain generations don't even know who Lauren Hill is, right, Like, 0:07:07.160 --> 0:07:10.200 so Miseducation of Lauryn Hill comes out in nineteen eight 0:07:10.400 --> 0:07:13.120 ninety eight. We got kids now who are nineteen who 0:07:13.160 --> 0:07:15.680 aren't even born, right, so they just know Lauryn Hill 0:07:15.720 --> 0:07:18.800 as the woman who kind of dresses funny in their opinion. 0:07:19.720 --> 0:07:21.880 But there was some major things that happened with her. 0:07:21.920 --> 0:07:24.400 And on your page, I saw that, you know, some 0:07:24.400 --> 0:07:28.280 people were wondering, like, hey, what's a What's what's up 0:07:28.280 --> 0:07:28.920 with these record deals? 0:07:28.960 --> 0:07:30.600 What's a three sixty deal? What does that even mean? 0:07:31.600 --> 0:07:33.720 So we're gonna give a fresh poch on what that 0:07:33.840 --> 0:07:34.880 is and how that looks. 0:07:35.160 --> 0:07:37.800 Yeah. So yeah, so when Jay, when Jay said that, 0:07:38.920 --> 0:07:42.000 y'all still signing deals for real? So one of the 0:07:42.000 --> 0:07:43.560 things he was losing too was the three sixty deal, 0:07:43.640 --> 0:07:45.400 right right, So, like you said at a lot of 0:07:45.440 --> 0:07:47.320 people have been asking me to make a video about 0:07:47.320 --> 0:07:48.760 the three sixty deal, but I just didn't want to 0:07:48.800 --> 0:07:51.120 make a you know a one minute clip about it. 0:07:51.160 --> 0:07:52.920 I wanted to kind of go into depth about what 0:07:53.000 --> 0:07:56.320 the three sixty deal really is because obviously a lot 0:07:56.320 --> 0:07:59.360 of people have aspirations of being in the music business 0:08:00.040 --> 0:08:04.240 that they want to be producers, artists, singers, whatever. So 0:08:04.440 --> 0:08:07.240 it's important for them to have the business knowledge, not 0:08:07.440 --> 0:08:09.960 just you know, how to wrap, how to write a song, 0:08:10.160 --> 0:08:11.640 or how to shoot a video. You know, there's a 0:08:11.680 --> 0:08:13.600 lot of stuff that goes in behind the scenes that 0:08:13.600 --> 0:08:16.280 a lot of time people aren't familiar with. So three 0:08:16.360 --> 0:08:18.720 sixty deal, three sixty deal, you want you want to 0:08:18.720 --> 0:08:20.160 start this off or you want me to start it. 0:08:20.080 --> 0:08:22.640 Off, so we can. I'll start it. 0:08:22.680 --> 0:08:26.000 So three sixty deal is something that came about in 0:08:26.040 --> 0:08:30.600 the early two thousands. Record companies started to realize that 0:08:30.640 --> 0:08:35.000 they were losing revenue because of illegal downloads. Right, so 0:08:35.040 --> 0:08:37.480 people weren't buying albums because we could just get it 0:08:37.520 --> 0:08:40.000 off of I guess napster at that point in LimeWire. 0:08:41.080 --> 0:08:43.600 So record companies were like, hey, we're losing money. We 0:08:43.679 --> 0:08:45.760 have to figure out a way to earn this money. 0:08:45.800 --> 0:08:50.600 Sean Parker, we got to acknowledge for a legend, we can't, 0:08:50.640 --> 0:08:53.080 we can't. We can't just take that lately. Sean Parker 0:08:53.160 --> 0:08:55.160 changed the game. Absolutely, change the world. 0:08:55.200 --> 0:08:55.720 Absolutely. 0:08:56.320 --> 0:08:59.559 Anybody not familiar with Sean Parker, he's the guy behind Napster. 0:09:00.480 --> 0:09:03.880 Twice you changed the world with Facebook also, absolutely, But Napster, 0:09:05.280 --> 0:09:08.439 they were they the first ones to start ripping music. 0:09:08.679 --> 0:09:10.320 I believe, so, man, I believe so. 0:09:10.440 --> 0:09:14.880 Like in the late nineties, late nineties, I believe Napster 0:09:15.000 --> 0:09:18.559 comes about. And when we found out about that, it was. 0:09:18.679 --> 0:09:21.560 So before Napster, everybody was buying CDs. Go to you 0:09:21.559 --> 0:09:23.439 go to Sam Goodie, you go to your local record 0:09:23.480 --> 0:09:24.680 store and you buy a CD. 0:09:24.840 --> 0:09:26.600 Let's go down a list of those stores that you're 0:09:26.600 --> 0:09:31.400 talking about that don't exist, Sam Goodies, cocon Nuts. 0:09:31.200 --> 0:09:34.720 For your entertainment, I forgot. 0:09:34.080 --> 0:09:39.160 For your entertainment, a bunch of these these these warehouses 0:09:39.440 --> 0:09:43.320 that would sell music that don't exist anymore. 0:09:44.040 --> 0:09:50.640 Okay, So all right, so Napster comes along. What exactly 0:09:50.720 --> 0:09:51.360 the naps to do? 0:09:51.440 --> 0:09:52.520 Again? So? 0:09:52.960 --> 0:09:55.960 Uh, Napster he figured out a way to get music 0:09:56.600 --> 0:09:59.880 illegally and stream it through the internet. 0:10:00.320 --> 0:10:03.160 So you could you could you could just get it 0:10:03.160 --> 0:10:04.640 from NAP's website. 0:10:04.280 --> 0:10:06.480 Right so well, for free, for free, So that that 0:10:06.559 --> 0:10:08.240 was the first time we started getting music from. 0:10:08.160 --> 0:10:12.160 So that that actually was the first stream right right 0:10:12.200 --> 0:10:14.520 as we know it today, right because he was taking 0:10:14.520 --> 0:10:18.800 the music and putting it on his website, and then 0:10:18.840 --> 0:10:20.360 from the website you can take it. 0:10:20.520 --> 0:10:24.440 So it was a listen a data file of just files, right, 0:10:24.559 --> 0:10:26.679 And that was the first time it was like direct 0:10:26.679 --> 0:10:29.760 to consumer. Right, So now I didn't have to go 0:10:29.760 --> 0:10:32.880 to the store to buy the cassette tape, which doesn't exist. 0:10:33.160 --> 0:10:34.880 I didn't have to go to start to get the CD. 0:10:35.280 --> 0:10:37.800 I'm getting it directly in my home. Not only am 0:10:37.800 --> 0:10:39.640 my getting directly in my home, but now I can 0:10:39.679 --> 0:10:42.840 get a multitude of artists. Right, I can make my 0:10:43.040 --> 0:10:46.440 own mix of songs, right, Like I remember showing people 0:10:46.520 --> 0:10:48.360 how to do it, and it was like, oh my gosh, 0:10:48.440 --> 0:10:51.280 like this is amazing, Like I can make my own mixtape. 0:10:51.360 --> 0:10:54.160 I don't have to waste money anymore. So like, yeah, 0:10:54.160 --> 0:10:57.440 that was the first direct to consumer music outlet. 0:10:58.640 --> 0:11:03.160 And then okay, so then once the record companies pretty 0:11:03.240 --> 0:11:05.320 much shut that down, they hit him with like what 0:11:05.800 --> 0:11:09.480 the federal government. Federal government shut down. I'm sure the 0:11:09.480 --> 0:11:10.440 record companies played a part. 0:11:10.600 --> 0:11:11.240 Absolutely. 0:11:11.760 --> 0:11:13.400 They d him on two hundred million dollars suits. 0:11:13.559 --> 0:11:16.239 It was crazy copies, all types of copyright infringement lawsuits. 0:11:16.720 --> 0:11:19.200 But after I mean, that doesn't stop it, right, like 0:11:19.280 --> 0:11:21.520 that idea, you can't, No, you can't, you can't. You 0:11:21.559 --> 0:11:23.559 can't stop energy. 0:11:23.880 --> 0:11:26.840 There it is, you can't stop energy because once it's 0:11:26.880 --> 0:11:31.160 out there, you can try to contain it. But it's 0:11:31.240 --> 0:11:32.160 like that the doors. 0:11:32.000 --> 0:11:33.559 Open at that point you can't close your eyes to 0:11:33.720 --> 0:11:34.240 So once. 0:11:34.080 --> 0:11:37.920 They shut down Napster, but the record companies did a 0:11:37.960 --> 0:11:40.440 smart thing. Okay, so from Napster we have to go 0:11:40.520 --> 0:11:41.559 to Steve Jobs. 0:11:41.760 --> 0:11:43.920 No, let's go. Well, there's a few other outlets. 0:11:43.920 --> 0:11:49.160 So once Napster starts, then other file sharing services come about. 0:11:49.200 --> 0:11:51.760 So then you get a LimeWire, right, and then a 0:11:51.920 --> 0:11:52.400 bunch of. 0:11:52.600 --> 0:11:55.760 That was still illegal, still illegal, so like he that's 0:11:55.800 --> 0:11:56.360 the idea. 0:11:56.480 --> 0:11:58.640 Then we get a bunch of other file sharing companies 0:11:58.679 --> 0:12:02.240 that come out, and now they're not just sharing music, right, 0:12:02.280 --> 0:12:05.880 so like movies. Now they're sharing movies, they're sharing TV shows, 0:12:05.920 --> 0:12:08.480 all types of forms of outlet of media. Right, they're 0:12:08.480 --> 0:12:11.360 sharing books like you can download a book. So now 0:12:11.360 --> 0:12:15.559 it's like this entire industry has to figure out, how 0:12:15.600 --> 0:12:17.640 are we going to stop this? Thing from bleeding, like 0:12:17.679 --> 0:12:20.400 this is bleeding. The music industry is bleeding. We're losing 0:12:20.400 --> 0:12:22.440 money at an all time rate. How are we gonna 0:12:22.440 --> 0:12:22.839 stop it? 0:12:24.240 --> 0:12:27.880 So okay, now we're into Steve Jobs in the picture. Okay, 0:12:28.240 --> 0:12:33.240 So Steve Jobs has the brilliant idea. Well it's actually 0:12:33.280 --> 0:12:34.839 not his idea, but he made it come to. 0:12:34.840 --> 0:12:38.679 Life, accepted the idea of the iPod, right. 0:12:40.000 --> 0:12:45.200 And then from the iPod came iTunes. 0:12:45.920 --> 0:12:46.960 Yeah right, yep. 0:12:47.480 --> 0:12:51.040 So with iTunes it's like the first legal streaming service 0:12:51.240 --> 0:12:52.200 because now we're paying for it. 0:12:52.280 --> 0:12:52.439 Right. 0:12:52.520 --> 0:12:54.680 So now he got with all the record companies, the 0:12:54.720 --> 0:12:58.560 heads of all the record companies, and said, look, streaming, 0:12:58.600 --> 0:13:03.000 and you can't stop streaming, right, but you can make 0:13:03.040 --> 0:13:04.520 money off of it. You can be part of it. 0:13:05.280 --> 0:13:08.000 Let's come together. I have the platform, you have the music, 0:13:08.040 --> 0:13:12.520 we can merge. Now we have iTunes exactly on your iPod. 0:13:13.600 --> 0:13:16.840 So now it's legal streaming as we know it today. 0:13:17.559 --> 0:13:22.040 And then that's grown to Spotify and title and everything else. 0:13:23.720 --> 0:13:28.360 So with that comes the creation of the three sixty deal. Right, 0:13:28.440 --> 0:13:36.200 because before record companies, well talk about the record. 0:13:35.320 --> 0:13:39.880 Record companies were pretty much basing their revenue off the 0:13:39.920 --> 0:13:43.040 sales of albums, right, and off the sale of singles. 0:13:43.120 --> 0:13:43.280 Right. 0:13:43.320 --> 0:13:46.360 But after those singles, no longer I don't have to 0:13:46.360 --> 0:13:47.440 pay for them, I get them for free. 0:13:47.760 --> 0:13:50.160 How do we generate money? Right? 0:13:50.280 --> 0:13:53.439 And they knew that their artists were still generating revenue 0:13:53.480 --> 0:13:55.560 on top of the album sales. Right, So then they 0:13:55.600 --> 0:14:00.120 go and tour, whether they make in store visits, as 0:14:00.200 --> 0:14:03.240 they sell merchandise, they're still generating revenue. 0:14:03.280 --> 0:14:06.760 So artists are very resilient people. So once the artists 0:14:06.800 --> 0:14:12.319 figured out they wasn't making money selling albums anymore, they 0:14:12.360 --> 0:14:15.640 found other revenues to make money, touring, which has been 0:14:17.320 --> 0:14:20.520 a revenue stream for years, so they make money off touring. 0:14:20.800 --> 0:14:26.520 Then they started merch selling merchandise. Then they started installing pearances, walkthroughs, 0:14:26.720 --> 0:14:32.080 all kinds of stuff, right, And so the music became 0:14:32.440 --> 0:14:35.680 just the platform they get your name out there, so 0:14:35.720 --> 0:14:37.760 you can make money off of all the other different 0:14:37.760 --> 0:14:42.760 aspects of it. So when the record companies figured that out, 0:14:42.880 --> 0:14:45.040 they say, Okay, the artists are still making money, but 0:14:45.080 --> 0:14:49.640 we're not making money anymore because album sales. Nobody's buying albums, 0:14:49.640 --> 0:14:50.120 so there's. 0:14:49.920 --> 0:14:53.400 No point in now signing a five to seven seven 0:14:53.400 --> 0:14:55.640 album year deal. There's no point of it anymore, right, 0:14:55.880 --> 0:14:58.120 we might not even get to three albums at this rate. 0:14:58.520 --> 0:15:00.360 Right. So the traditional was after. 0:15:00.240 --> 0:15:04.080 Seven years and after you've met that obligation, now you're 0:15:04.120 --> 0:15:06.960 free to sign at another label or your free design 0:15:07.200 --> 0:15:09.600 your own through your own outlet. 0:15:10.760 --> 0:15:11.880 That was the traditional way. 0:15:12.680 --> 0:15:15.160 And then they said, wait, if they're not selling albums, 0:15:15.160 --> 0:15:16.240 how are we going to make money? 0:15:16.800 --> 0:15:20.080 So and how they're going to make money, they decided 0:15:20.120 --> 0:15:22.960 to enter the three sixty deal. So the three sixty 0:15:23.000 --> 0:15:26.120 deal is when that's why it's called three sixty because 0:15:26.840 --> 0:15:29.720 they get a piece of everything, right, So, they get 0:15:29.720 --> 0:15:32.560 a piece of your streaming, they get a piece of 0:15:32.600 --> 0:15:35.120 your merch, they get a piece of your touring, they 0:15:35.120 --> 0:15:40.320 get a piece of sometimes even walkthroughs, club performances, anything, 0:15:41.480 --> 0:15:46.640 TV appearances, anything that you do that makes you money 0:15:47.360 --> 0:15:49.080 will make them money. They want it. They want a 0:15:49.120 --> 0:15:51.400 piece of everything exactly. It's like it's like, what's that 0:15:51.560 --> 0:15:54.520 Kings of New York? He said, if if is sold, 0:15:54.560 --> 0:15:55.760 so I want, I want. 0:15:55.720 --> 0:15:58.200 I want It's still I want in deal. Right. So, 0:15:58.600 --> 0:16:01.000 originally they used to give you advance. 0:16:01.920 --> 0:16:03.920 If you sign a record contract, you get an advance 0:16:04.400 --> 0:16:07.160 and that goes towards you know, the making of your album, 0:16:07.280 --> 0:16:10.040 perhaps maybe some of your videos. So they still do 0:16:10.120 --> 0:16:11.880 that in the three sixty deal, but now it's like, 0:16:11.920 --> 0:16:13.800 all right, we got to recruit that. So they might 0:16:13.840 --> 0:16:17.440 give you a bigger upfront advance, but they're still trying 0:16:17.440 --> 0:16:20.160 to recruit it through those avenues of income that you 0:16:20.240 --> 0:16:20.840 just spoke about. 0:16:21.080 --> 0:16:23.160 It is the I one end deal I want in. 0:16:23.280 --> 0:16:24.480 You're making a dollar I want in. 0:16:26.120 --> 0:16:32.440 Yeah. Well, so now now people are taking a more 0:16:32.480 --> 0:16:35.560 independent route right, right, because they realize that with streaming, 0:16:36.320 --> 0:16:39.720 you don't necessarily need the record label. How you used 0:16:39.720 --> 0:16:41.480 to lead, how you used to need the record Because 0:16:41.960 --> 0:16:45.480 I've heard from record executives and people in the music 0:16:45.520 --> 0:16:48.400 industry that the reason the three sixty deal makes sense 0:16:48.960 --> 0:16:52.920 is that they are investing money in the artists, right. 0:16:53.120 --> 0:16:54.920 They're calling it growth development. 0:16:54.600 --> 0:16:57.280 Right, and they're they're putting an artist on a platform 0:16:57.880 --> 0:17:00.560 for them to get that merched soul, then for them 0:17:00.560 --> 0:17:03.360 to get those TV appearances, and for them to get 0:17:03.360 --> 0:17:06.200 that touring. They wouldn't have that without the push from 0:17:06.240 --> 0:17:09.040 the record label. So it's only right that the record 0:17:09.080 --> 0:17:10.399 label recoups that. 0:17:10.960 --> 0:17:12.840 Yeah, I mean, but that used it, that may have 0:17:12.920 --> 0:17:13.280 been true. 0:17:13.320 --> 0:17:17.120 But in this era of like our YouTube generation of kids, right, 0:17:17.160 --> 0:17:19.159 Like I call him the YouTube generation because like our 0:17:19.240 --> 0:17:22.800 kids don't watch TV, right, Like they started Disney Channel 0:17:22.840 --> 0:17:24.080 and by the time that's done, it's. 0:17:23.960 --> 0:17:25.840 Like, all right, well now we're watching YouTube. 0:17:26.320 --> 0:17:29.480 So people are making themselves hot, right, they don't necessarily 0:17:29.520 --> 0:17:30.440 need a record label. 0:17:30.840 --> 0:17:33.520 And I know, like Soldier Boy, right, like. 0:17:33.480 --> 0:17:36.640 People he's been all over the over the media outlets 0:17:36.720 --> 0:17:39.720 lately and it's like they laugh at him, but it's like, no, 0:17:39.840 --> 0:17:41.480 this is what this kid did is legendary, right, Like 0:17:41.520 --> 0:17:46.240 he's the first guy to introduce artists through YouTube, right 0:17:46.359 --> 0:17:47.840 back to his first video at Cranked. 0:17:47.840 --> 0:17:49.400 That right, Soldier Boy is interesting. 0:17:49.520 --> 0:17:51.240 Yeah, I mean he's legendary. Right. 0:17:51.359 --> 0:17:55.760 You can't you can't dismiss him, No, and we shouldn't. 0:17:55.800 --> 0:17:59.200 You can't dismiss him because, like you said, he actually 0:17:59.640 --> 0:18:04.800 pied near this whole YouTube sensation. Yeah, get yourself high 0:18:05.320 --> 0:18:06.000 with a dance. 0:18:06.840 --> 0:18:10.080 He's the he's the first viral artist of Yes, he's 0:18:10.080 --> 0:18:11.120 the first viral artist that. 0:18:11.040 --> 0:18:14.560 We've seen people with who've had movements, right, Like we've 0:18:14.600 --> 0:18:17.199 seen the fifty cent and the g and the we 0:18:17.240 --> 0:18:18.639 grew up in that dipset movement. 0:18:18.640 --> 0:18:20.000 Those were movements, but this. 0:18:20.040 --> 0:18:23.480 Kid is the first viral artist where it's like this 0:18:23.560 --> 0:18:26.640 is on the internet and now it's taken off right. 0:18:26.640 --> 0:18:30.120 So like at the time, when crank That comes out, right, 0:18:30.600 --> 0:18:34.760 he produced himself, produced himself, made with two like, he 0:18:34.760 --> 0:18:38.200 didn't use any live instruments, right, he bought I think 0:18:38.240 --> 0:18:41.640 it's fruity loops, I believe free loops software. 0:18:41.520 --> 0:18:43.440 And created crank That. Right. 0:18:43.600 --> 0:18:47.280 This thing goes on to self to three million streams 0:18:48.119 --> 0:18:49.920 in two thousand and seven. Right at the time, that's 0:18:49.960 --> 0:18:52.880 an all time record. This kid generates seven million dollars 0:18:53.359 --> 0:18:57.640 at sixteen, right, so he becomes the first viral artist. Hey, 0:18:57.920 --> 0:18:59.600 I don't really need that label. Label has to come 0:18:59.640 --> 0:19:02.080 to me. So he signed with Kylie Park, who was 0:19:02.119 --> 0:19:04.760 an Atlanta executive at the time. But in the video, 0:19:04.800 --> 0:19:07.320 the first scene is kids and this is like kind 0:19:07.359 --> 0:19:09.920 of indicative of where we are now. He has two 0:19:10.040 --> 0:19:14.120 kids doing the dance and he's sitting behind his desk 0:19:14.160 --> 0:19:16.119 like what are y'all doing? And they're like that's that 0:19:16.200 --> 0:19:18.679 grant dad, And. 0:19:18.040 --> 0:19:19.119 He's like who is that? 0:19:19.400 --> 0:19:20.720 And they're like, Daddy a soldier. Boys. 0:19:20.760 --> 0:19:23.800 Like now the kids because they're on the Internet and 0:19:23.800 --> 0:19:27.240 now on TV are telling the adults like what's hot. 0:19:27.400 --> 0:19:29.000 I was like wow when I saw that the other day, 0:19:29.000 --> 0:19:33.680 I'm like wow, that's like for like foreshadowing what's happening. 0:19:33.760 --> 0:19:37.160 These kids are telling us what's hot because they sold 0:19:37.200 --> 0:19:37.679 on YouTube. 0:19:37.720 --> 0:19:40.320 So like he's the first viral us. Yes, we might 0:19:40.359 --> 0:19:41.159 not light the way. 0:19:41.000 --> 0:19:43.560 He conveys his message, but he speaks a lot of 0:19:43.600 --> 0:19:44.600 truth in what he's saying. 0:19:44.720 --> 0:19:48.840 Right this, we can't deny this kid, right, Like he's 0:19:48.920 --> 0:19:49.359