Music sales rebound would benefit Bronfman
Commentary: Will Bronfman Have The Last Laugh? (Business Week). "BUT THE BIGGEST cost savings of all may come if Bronfman is willing to preside over "some creative destruction of the business," as one investment banker puts it. The place he must start, say some executives, is with bloated artist deals, such as those exemplified by Sony Music Entertainment Inc.'s $100 million long-term deal with Michael Jackson or the $80 million EMI Group PLC paid Mariah Carey for a four-record contract. Warner Music may soon have to contend with a costly deal of its own: its longstanding partnership with Madonna and her Maverick Records. Throughout the industry, execs are considering moving to contracts that are tied more closely to performance rather than "deals based on what you hope [the artists] will sell," says Danny Goldberg, founder of independent label Artemis Records."