CONTRACTS
Record Labels

Following the much discussed deal between Robbie Williams and EMI, The LA Times reports that EMI has signed a five-year deal with Korn where the label will have a stake in the band’s additional earnings beyond sales of recorded music. An estimated fifteen million dollar advance has been paid. Similar deals are being done with new acts including A&M/Interscope’s deal with the Pussycat Dolls. My Chemical Romance’s deal with Warners covers both recording rights and merchandise. Under Korn’s new deal, EMI will get more than 25% of the band’s publishing, merchandising and touring revenue as well as profit from the group’s albums The signing of a band as big as Korn is seen as possibly indicative of how recording contracts will change across the industry. Some see this as a way for labels to get a better/quicker return on their investment (as bands will be marketed more aggressively through all media channels). However, others are suggesting that Korn’s recording and touring fortunes are on the slide, making this a curious time to sign a deal such as this with the band. Music executives and artists say that if all-encompassing agreements become common, they could significantly shift the focus of the $11 billion recording industry and bring new heavyweights to the concert and merchandise businesses.

See: http://www.latimes.com/business/la-fi-korn12sep12,1,1468209.story?coll=la-headlines-business