October 8, 2007
The Record Label As VC
Ok, ok, we were going to take a swipe at EMI because, as the Daily Telegraph reports, Guy Hands who runs the record label sent out an email to his staff suggesting that it might be time to stop focusing on CD sales… yes in October 2007! Hey, but then we saw this quick point Hands made about the changing role of the record label:
Mr Hands is understood to have forecast that unless there is a major cultural change in the industry, other established bands will turn away from record labels, instead selling their music straight to fans. He has suggested instead of paying big advances to artists to keep most of the money from new releases, labels could instead subsidise the cost of creating an album in return for a share of its profits.
Which is an interesting idea, no? The record label as backer, not taker. But then again, in this ultra-connected world, who really needs to give away a percentage to a VC backer anymore?
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