p2p news / p2pnet:- The machinations of the Big Four record label cartel - EMI (Britain), UMG (France, WMG (US) and Sony BMG (Japan, Germany) - grow ever more complex as they strive to further swell their already grotesquely engorged coffers.

Now EMI may have come up with a way to “fundamentally change how record companies profit from the superstars they help create,” says the Los Angeles Times.

Actually, “help” should be deleted.

Anyway, EMI was expected to announce a deal with former Sony band Korn, whose founding guitar player Brian ‘Head’ Welch recently quit to answer the call of Jesus.

“The deal, which would give EMI a stake in almost every dollar the band earns worldwide over at least the next five years, would represent the first time a high-profile American band has wholly partnered with a record company, although similar experiments have been initiated with foreign and first-time performers,” says the story.

“Sources close to the band said that under the terms of the deal, EMI would pay the four-member band an estimated $15 million upfront - more than twice what the band might expect from a traditional recording contract. In return, EMI would get more than 25% of the band’s publishing, merchandising and touring revenue as well as profit from the group’s albums.”

EMI’s chief executive of EMI Recorded Music North America is quoted as saying, “our margins are under threat and our marketing costs are getting more expensive. We should share in the other revenue streams that are created.”

But others are skeptical, says the LA Times, adding:

“The Korn contract ‘might be one of those deals that revolutionizes the music industry,’ said Rick Sales, a manager at Sanctuary Artist Management. ‘Or, EMI might wake up one day and wonder why they just handed Korn 10 years’ worth of profits’.”

Something you think we should know? tips[at]p2pnet.net

See:-
Los Angeles Times - EMI Takes a Stake in Band, September 12, 2005
guitar player - Welch leaves Korn for Jesus, February 14, 2004

This entry was posted on Tuesday, September 13th, 2005 at 12:03 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

HOME

Viewed 1980 times