Record Companies Wary of Vanity Label Deals
With the music industry looking to cut costs amid lower profit margins, record companies see fewer incentives to investing in artist-run label projects. Twelve years ago, Madonna decided to apply the business instincts that made her a superstar toward finding and developing new acts for her own music label. Maverick Records flourished early on. It generated hits by the likes of Alanis Morissette and Prodigy, validating the decision by Warner Music to form a partnership with its biggest star. But Maverick’s good fortunes started to turn during the industrywide sales slump that began in 2000. The label-parent relationship soured, landing… Read more »
