TEXT OF STORY
MARK AUSTIN THOMAS: Typically a record company attracts new artists with big payments upfront which they hope to make up later on with CD sales. But CDs aren’t selling well. Ashley Milne-Tyte tells us about a company that’s trying something new.
ASHLEY MILNE-TYTE: EMI has teamed with talent management company The Firm to form a new record label.
But when artists sign, they won’t get a huge advance. Instead, the artists and the label share profits from album sales, concerts and merchandise.
Eric Boehlert is a contributing editor to Rolling Stone. He says it’s the first time a major label like EMI has departed from the old model and rivals will be keeping a keen eye on the results.
ERIC BOEHLERT: “No matter what the formula is it always comes down to what’s on the record. The entire industry is based on hits, so the signing label and the cooperative, that’s all great. If you don’t produce the hits none of it matters.”
Still he says, EMI and its partner are well-respected industry veterans, and many artists will be happy to work with them.
I’m Ashley Milne-Tyte for Marketplace.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.