US management firm, erm, The Firm, has announced it is launching its own record label, though it will do so in association with EMI who will handle North American distribution and global licensing for their artists. The aim, they say, is to build a new business model for releasing records that will be more 'artist-friendly', mainly by paying them a share of the profits rather than a traditional royalty (which is more artist friendly, assuming there are profits to share).
The Firm CEO Jeff Kwatinetz told reporters: "This is an opportunity for The Firm to create a new music business model that shifts power back to the artists and the focus back to the music itself. While many in the music industry are pessimistic about the future, we think the possibilities are limitless if we can find fresh ways to support and nurture great art and the talent that creates it."
On the EMI partnership, he continued: "The innovative work we have done with David Munns, Alain Levy and their team at EMI on Korn, Ice Cube, 30 Seconds To Mars and others has been lighting the way. They are forward thinkers whose artist-oriented approach is empowering the creative community. Instead of whining about the difficulties plaguing today's music business, they are planning for the future".
For their part in the project, EMI Vice Chairman David Munns said: "EMI is delighted to distribute The Firm's music company in the US and bring its artists to a global audience. The Firm's label roster will be another strong American repertoire source for EMI worldwide. Jeff shares my view that our changing industry sometimes calls for breaking the mold and pursuing new business models. As a result, we're already having success with the groundbreaking deal we did with The Firm on Korn and we look forward to this being another solid venture."
The Firm's latest venture follows several previously reported artist specific arrangements which enabled the company's artists to enter into innovative contracts in order to release and distribute their music, most notably a three way deal between themselves, EMI and Live Nation in relation to the band Korn.