Auburn Annie
10-27-2003, 03:13 PM
I saw Clint Black this morning talking about his new label. Here's an article from the Nashville Business Journal that explains more:
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Nashville Business Journal - August 18, 2003 http://nashville.bizjournals.com/nashville/stories/2003/08/18/story2.html
Clint Black, Sony vet hope new label gives more Equity to artists
Joe Morris
Nashville Business Journal
With an eye toward more artistic control and equitable profit sharing, Equity Records hopes to reconfigure the recording industry business model.
Formed by former Sony exec Mike Kraski, recording artist Clint Black, manager Jim Morey and financier Charles Sussman, the label's main mission is to give artists a creative outlet as well as ownership of the finished product.
Rather than be tied to a contract with multiple terms to be satisfied before seeing revenues, artists will see deals structured on an individual basis.
After leaving Sony earlier this year, Kraski says he was casting about for new opportunities when he was contacted by Sussman. What he thought would be a touching-base lunch turned into a job offer.
"He asked me what I wanted to do, and I said I'd been groomed to run a label and would really like the shot to do it," Kraski says. "He asked me what I would do differently and I got on my soapbox. The business model now is dysfunctional, and the relationship between artist and label needs to change."
Once Kraski wound down, he says Sussman told him he and some others were looking at investing in a label, and they thought he'd be the one to run it.
"I'm glad I took the lunch," he says.
Equity's maiden release will be a single by Black, with a CD slated to follow in February 2004. In the meantime, Kraski and his partners will be approaching, and likely be approached by, other artists who may come into the fold. The key, Kraski says, will be the diverse deal structure.
"Revenue sharing is going to vary," he says. "All deals are going to change because all artists' careers are fundamentally different. It's a relationship with the label that transcends CD sales. It can't be cookie-cutter. We want to extend those relationships in a fair and equitable way."
For instance, although nothing has been set in stone, song download fees will be split 50-50 with the talent, he says, "which is a lot different than what's currently being offered."
Accounting procedures often have created strain between artists and their labels, says Sussman, who has testified on behalf of artists in California state senate hearings on the issue.
"By changing how we do that, I think it will bring us closer together with our artists, and it will benefit both," he says.
Artists as diverse as the Dixie Chicks and Courtney Love have gone public with their dissatisfaction concerning royalty payouts and other contractual issues with their labels.
As for the label's basic setup, each principal has an ownership stake, as will the artists signed to it and its employees, Sussman says.
Equity's principals haven't had time to gauge reaction around town. But they think it will be positive - for the most part.
"I think there will be some parties who will wait and see how it pans out," says Kraski. "We do have to show everyone that it works at the end of the day. But almost everyone I've talked to is saying 'It's about time.' If I had a consensus quote, that would be it."
jmorris@bizjournals.com, 615-248-2222 ext. 112
© 2003 American City Business Journals Inc.
*******************************************
Nashville Business Journal - August 18, 2003 http://nashville.bizjournals.com/nashville/stories/2003/08/18/story2.html
Clint Black, Sony vet hope new label gives more Equity to artists
Joe Morris
Nashville Business Journal
With an eye toward more artistic control and equitable profit sharing, Equity Records hopes to reconfigure the recording industry business model.
Formed by former Sony exec Mike Kraski, recording artist Clint Black, manager Jim Morey and financier Charles Sussman, the label's main mission is to give artists a creative outlet as well as ownership of the finished product.
Rather than be tied to a contract with multiple terms to be satisfied before seeing revenues, artists will see deals structured on an individual basis.
After leaving Sony earlier this year, Kraski says he was casting about for new opportunities when he was contacted by Sussman. What he thought would be a touching-base lunch turned into a job offer.
"He asked me what I wanted to do, and I said I'd been groomed to run a label and would really like the shot to do it," Kraski says. "He asked me what I would do differently and I got on my soapbox. The business model now is dysfunctional, and the relationship between artist and label needs to change."
Once Kraski wound down, he says Sussman told him he and some others were looking at investing in a label, and they thought he'd be the one to run it.
"I'm glad I took the lunch," he says.
Equity's maiden release will be a single by Black, with a CD slated to follow in February 2004. In the meantime, Kraski and his partners will be approaching, and likely be approached by, other artists who may come into the fold. The key, Kraski says, will be the diverse deal structure.
"Revenue sharing is going to vary," he says. "All deals are going to change because all artists' careers are fundamentally different. It's a relationship with the label that transcends CD sales. It can't be cookie-cutter. We want to extend those relationships in a fair and equitable way."
For instance, although nothing has been set in stone, song download fees will be split 50-50 with the talent, he says, "which is a lot different than what's currently being offered."
Accounting procedures often have created strain between artists and their labels, says Sussman, who has testified on behalf of artists in California state senate hearings on the issue.
"By changing how we do that, I think it will bring us closer together with our artists, and it will benefit both," he says.
Artists as diverse as the Dixie Chicks and Courtney Love have gone public with their dissatisfaction concerning royalty payouts and other contractual issues with their labels.
As for the label's basic setup, each principal has an ownership stake, as will the artists signed to it and its employees, Sussman says.
Equity's principals haven't had time to gauge reaction around town. But they think it will be positive - for the most part.
"I think there will be some parties who will wait and see how it pans out," says Kraski. "We do have to show everyone that it works at the end of the day. But almost everyone I've talked to is saying 'It's about time.' If I had a consensus quote, that would be it."
jmorris@bizjournals.com, 615-248-2222 ext. 112
© 2003 American City Business Journals Inc.