Private equity group Terra Firma might have thought they had a sure thing on their hands when they bought EMI Music (which includes Virgin and Capitol) in 2007. And while parts of EMI, the world’s fourth-largest label, are doing ok now, the future looks a little shaky. The Wall Street Journal reports that Terra Firma is considering asking investors for $160 million to stay afloat. London’s Financial Times states that the recorded music business won’t be able to pay the loans it owes Citigroup.
And while Terra Firma needs that money to keep EMI in business, the Times states that EMI’s operating performance has improved. They made a lot of cost cutting moves in the last year or so. Their music publishing business is doing well; a reissue of the Beatles’ catalog and the success of current bands, such as Alice In Chains, hasn’t hurt either. And four of the top ten albums this week are EMI bands, including something called Lady Antebellum that sold almost 500,000 copies this week. The music industry is definitely changing, and the days of super rich corporate executives lighting Cuban cigars with $100 bills is long over. But there’s got to be a compromise between that and losing great labels like Capitol and Virgin.
Last year, German metal label SPV declared insolvency, which is the German version of declaring bankruptcy. Sadly, as part of that, they shut down their American offices, leaving bands like Whitesnake, Monster Magnet, and Motorhead without a deal in the U.S. Thankfully, E1 Entertainment has just announced that they’ve signed a deal to acquire North American rights for SPV’s roster.
“The metal genre has become an important aspect of our business and continues to be a growing initiative spearheaded by Scott Givens, VP of Metal of E1 Music,” KOCH CEO Michael Koch commented.
“After a period of restructuring, SPV is back in the U.S. market with a strong catalogue of back titles and new releases,” SPV’s Andreas Rennmann added. “With E1 we’re happy to have a partner that offers a professional setup and has the same passion for music.”
So I guess this makes Scott Givens the VP and the Chancellor of Metal? This is a great pickup for any label. The back catalog alone is great, but new music from bands like Motorhead and Type O Negative should definitely get E1 a nice return on their investment. A spokesperson told Metal Insider there’s no word yet on when SPV releases will start coming out on E1.
UPDATE: Zakk’s wife and co-manager, Barbaranne Wylde, has confirmed the signing to E1.
UPDATE 2: E1 has confirmed the signing. See the full press release after the jump.
It’s being rumored that legendary guitarist-slash-unintentional humorist Zakk Wylde has signed Black Label Society to E1 Records. While nothing has been confirmed as of yet, Wylde has previously announced that a new album is on track for a June release.
This would be an extension of E1’s recent metal spending spree, as the label has signed or released records from high-profile metal acts In Flames, Hatebreed, Otep, Throwdown, Overkill, Satyricon and High On Fire in the last 18 months or so. Signing these acts are likely safe bets for E1, as they have a strong built-in fanbase and don’t need the development work required for new acts. When talking about hardcore fan bases, no one can argue that BLS’ following is one of the most loyal.
We will keep you updated about the signing as more is confirmed.
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Just one month after Razor & Tie made a splash in the metal scene with the signing of Norma Jean, the label has announced the launch of a new imprint label for The Artery Foundation, management company to The Devil Wears Prada and Whitechapel.
Little is known about Artery Recordings at this time, but its first release will be on February 16 from Chelsea Grin, with releases planned for Bury Tomorrow and A Bullet For A Pretty Boy.
UPDATE: Hit the jump for the press release.
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New York-based label Razor & Tie, whose sole metal connection for years has been All That Remains (well, if you want to count E-Town Concrete and those Monsters of Rock compilations), has announced the addition of Norma Jean to its roster for a Summer 2010 release.
What does this mean? Will Razor & Tie be chasing more metal bands? Has Norma Jean forsaken Jesus by leaving its longtime Christian home at Solid State Records? Only time will tell, but we’re sure all that Kidz Bop money made a nice impression on the Norma Jeaners.
Hit the jump for the full press release.
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In a somewhat surprising move (we already knew something was up), Rob Zombie has announced his departure from Interscope/Geffen and has signed a deal with Roadrunner’s commercial-leaning Loud & Proud Imprint. His Hellbilly Deluxe 2 will see a 2010 release.
What happened here? Our best guess is that Interscope realized Zombie’s best days are behind him and they’d need to do more than lean on an existing fanbase to move the record. While we speculated Zombie might try to go the self-release route, he’s likely extremely busy with his film career and already has tons of money in the bank, so if high profit margins aren’t a concern, why do all the work when Roadrunner/Loud & Proud has the savvy to make this album a success?
Meanwhile, Loud & Proud has been a powerhouse lately, signing far more high-profile acts than its parent label, including Lynyrd Skynyrd, Sammy Hagar, Ratt, Collective Soul and Tommy Lee’s Methods of Mayhem. Not that any of that is metal (or relevant) enough to make sense on Roadrunner, but when you want to talk about money-makers, Loud & Proud is setting itself up nicely. And while Rob Zombie isn’t a hit-machine anymore, he’ll still move enough units to make a smaller label happy.
Private equity group Terra Firma might have thought they had a sure thing on their hands when they bought EMI Music (which includes Virgin and Capitol) in 2007. And while parts of EMI, the world’s fourth-largest label, are doing ok now, the future looks a little shaky. The Wall Street Journal reports that Terra Firma is considering asking investors for $160 million to stay afloat. London’s Financial Times states that the recorded music business won’t be able to pay the loans it owes Citigroup.
Posted by Bram Teitelman on Thu, Feb 4, 2010 at 11:02 am
Gloom And Doom, Label Moves