French Montana Reveals Music Industry Truths

French Montana breaks down the realities of the music business, explaining why he went independent, why he’ll never sign another record deal, how record deals are structured, why many artists aren’t truly independent, and his plan to re-record his biggest hits to regain ownership. He also shares why even successful artists can’t always count on recouping from music sales.

In this video, French Montana provides an educational breakdown of how traditional major record label deals often operate to the disadvantage of artists.

Here is a breakdown of the key concepts he explains regarding record deals and industry structures:

The Reality of “Advances” and Recoupment

Advances are Loans: French Montana emphasizes that an advance is not free money; it is a loan from the label that must be paid back through record sales [00:04].
The “Recoupment” Trap: He explains that labels often set up deals—even those that appear favorable, such as a 50/50 split—in ways that make it extremely difficult for an artist to ever see a profit [01:06].
Unequal Splits: Even in a theoretical 50/50 deal, labels may take their share off the top, while the artist’s share is used to pay back the entire advance [01:06]. Additionally, hidden costs like distribution fees (which he estimates add another 16%) can effectively turn a 50/50 deal into a 30/70 split in favor of the label [01:22].
The “Never Recouped” Experience: He highlights his personal experience, noting that despite having multiple platinum records on his debut album, he still has not “recouped” the $1 million advance he received for it, meaning the label continues to collect on those earnings before he sees royalties [04:30].

The Benefits of True Independence

100/0 Ownership: French Montana advocates for a “100/0” business model—where the artist takes all the risk but also reaps all the rewards [02:04]. By funding his own marketing and operations, he maintains full ownership of his catalog [01:45].
Outsourcing vs. Label Structure: He notes that even when signed to a label, artists often end up spending their own money on projects to get things done correctly [02:29]. By operating independently, he can choose to hire specific experts (like those for streaming platforms) rather than relying on a rigid, inefficient label structure [02:12].
Generational Wealth: He argues that the shift to independence is driven by the desire to build long-term, lasting income that can be left to his children, rather than relying on checks from a label that may never be fully paid back [04:14].

A Warning on “Independent” Labels

He warns artists that some “independent” labels actually operate with major label structures [02:59]. These companies may offer advances and retain high percentage splits, creating a deal that is essentially a major label contract masked as an independent partnership [03:12]. He suggests that artists are often better off with a traditional major label than signing such restrictive deals with smaller entities [03:39].