Big Music Stars Have A New Label

You won't be seeing artists like Coldplay, Pink Floyd and Radiohead on the Parlophone label anymore as its acquisition by Warner Music Group has now been finalized. Parlophone was one of the world's oldest record labels, having been founded in 1896, but had been part of EMI since 1926. It was also the British home of The Beatles during their 1960's heyday.

Just to show you what an interesting ride it can be for an artist, EMI was purchased was purchased by Universal Music Group in 2012, but in order for the sale to go through, UMG was forced to divest Parlophone to appease European regulators. In February of 2013, Parlophone was then purchased by Warner Music Group, which then had to gain approval of both European and American regulators, hence the delay before they could release titles by Parlophone artists.

Now that the ride through the major label roller coaster is over, Warner Bros Records will distribute new releases from artists like Kylie Minogue, Lily Allen, and Eliza Doolittle, and catalog titles by Pink Floyd, Jethro Tull, Blur, Gorillaz, Radiohead, Kraftwerk, Supergrass and Sinead O'Connor. Atlantic Records (a subsidiary of WMG) will distribute new releases from Coldplay, Tinie Tempah and David Guetta (although through his own imprint called Big Beat).

This story just goes to show that once an artist is signed to a label, he or she has little control over their fate down the line. If artists like Coldplay and Pink Floyd don't have the control over their own destinies, than what hope does an artist of lessor stature have? That said, the above artists do appear to be landing in a good place, as WMG is noted for having some great digital chops, and that's where the business is going.

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Warner's Pays Up

One of the primary operating principles of major labels has always been to get away with as much as possible when it comes to underpaying artist royalties. The idea is something like, "Let's not pay this, and if he ever finds out, he'll have to sue us first. Then maybe we can settle for less that we owe." That's the way it's always worked, and that's why record labels in general have received the reputations they now live with.

Another example of this came to light recently when singer Michael McDonald settled with Warner Bros for deliberately underpaying him on itunes downloads for his Doobie Brothers big hits. He's not the only one though. Artists like Kenny Rogers, Peter Frampton, The Cars and Queen's producer Roy Thomas Baker have all received recent settlements as well.

This particular line of suits came about as a result of the Eminem suit a few years ago, where his production company successfully argued that a download constituted a license and not a sale. As a result, the royalty should be 50% of the sale instead of the normal 12 to 20%.

Even though this might seem like a win, it's never really a total victory with record labels, since you never know for sure what the exact sales of your records are. Sure they send you a statement, but chances are the numbers favor the label and not the artist.

Even in todays online world of vastly improved measurement, it doesn't necessarily mean you're seeing the real numbers. No wonder so many artists would rather go the DIY route.

But let's face it, record labels aren't in the business to make money for their artists. The major labels only care about their shareholders, and well they should, since that's their real business. The real fact of the matter is that they care more about the artist's audience than the artist themselves. Every artist should understand this going into a record deal, and expect that they may have to do what Michael McDonald and all the others did if they have some success. It's just the way the business is.

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Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.

Follow me on Forbes for some insights on the new music business.

You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.