Linkin Park Wants Out of Warner Deal
We may have to wait for the next Linkin Park release as the band released a statement saying they wanted out of their Warner deal and were considering selling direct on the Internet.
Says a statement released by The Firm, Linkin Park’s management company..
“The new owners of the Warner Music Group will be reaping a windfall of $1.4 billion from their $2.6 billion purchase a mere 18 months ago if their planned IPO moves forward. Linkin Park, their biggest act, will get nothing,” the statement reads. “Of the planned $750 million raised by an IPO, only about $7 million will be put toward the company’s own operations, with no money going to WMG artists.”
While they still have four albums to deliver under the current contract, Warner is said to wish to extend the deal with an additional five albums at US$3 mil an album. While that might sound like a great deal, consider “Hybrid Theory” did 14 million units worldwide and was the best selling record of 2001. For the sake of round numbers let’s say US$10 per each copy of “Hybrid Theory” is a gross of US$140 million. They did 10 million units worldwide of the 2003 release “Meteora” and a couple million of the Jay-Z remixes of “Collision Course”. Combined US only sales of the three releases are in the 20 million unit range.
In response Warner Music Group issued a statement which in part says…
“We value our relationship with Linkin Park, and we are proud of our work together since signing the band as a developing artist in 1999. While Linkin Park’s talent is without question, the band’s management is using fictitious numbers and making baseless charges and inflammatory threats in what is clearly a negotiating tactic,” the statement read.
“Warner Bros. Records has made significant investments in Linkin Park, and they have always been compensated generously for their outstanding worldwide success.”
Fictious numbers? Baseless charges? Inflamatory threats? Seems like WMG thinks those sorts of business tactics are for the sole use of the labels. Kind of like dishing it out, but not being able to take it. Mr. Pot, allow me to introduce Mr. Kettle…
The current business models have hit an iceburg. Lifeboats are going into the water as we speak. There are plenty of managers in LA, Nashville and NYC that are waiting to see how this shakes out.