Steve Stoute Says Music Industry is 'Done' if Drake Goes Independent
Drake's current deal with Cash Money Records is set to expire soon, and Stoute believes record companies will do anything they can to keep him signed.
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Drake is arguably the most profitable and prolific artist that hip-hop has seen of the current music generation. Drizzy has already changed the landscape of music sonically through his art. But if Drake decides to take the business into his own hands, he could effectively change how the music industry operates, according to to entrepreneur and former record executive, Steve Stoute.
While talking to Russ during the virtual SelectCon conference, Stoute expressed that Drake could shut down the music business if he decided to go completely independent.
"If Drake goes independent, the music business is over," Stoute told Russ per Variety. "If Drake goes independent, the music business is done."
Drake's contract situation isn't just hazy, but it has also been a point of contention. Although he's currently signed to Cash Money via Universal Music Group-owned Republic Records, his deal is set to expire soon. This places Drizzy in the position to either craft a historic contract or x-out the middle-man and give the cut straight to his fans. Because of how important Drake is to the music industry, Stoute believes that record companies will do whatever they can to keep Drizzy signed. As a result, Drake could walk away with a deal that's sweeter than being indie.
"I said this before, Drake is about to come out in the next six months, Drake is about to get the biggest bag in the history of the music business by far," Stoute said when talking about Drizzy's upcoming negotiations and his hypothetical indie career. "Both A and B, they don’t want that to happen. Because the day that happens, they might as well close the business down."
Still, Russ thinks that Drake should leave the record labels and "fuck the whole shit up."
"Drake uploads ‘God’s Plan’ on a digital distributor so whatever money it is: less than $10 dollars, right? Fine, pay for the beat—$10K, $20K, $30K, $40k, whatever the fuck it is—and to get mixed: four racks. So you’re all, $50K tops," Russ explained. "That song, you owning it forever and getting paid weekly on it, you’re making a million dollars a week off that song. It’s different. If Drake goes independent, this whole industry gets turned upside down. That’s why I’m independent, putting out music independently. I'm gonna fuck this whole industry up."