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January 17, 2008
Mick Jagger loses satisfaction with EMI
Dan Sabbagh: Media Editor
Sir Mick Jagger and The Rolling Stones are preparing to follow Sir Paul McCartney and Radiohead and abandon EMI, the crisis-stricken British record label.
The likely defection of the world’s most commercially savvy rock band is a further blow to the credibility of EMI’s new owner, the venture capitalist Guy Hands, who is striving to cut costs amid an artists’ revolt. Sir Mick met Mr Hands during the negotiations over a renewal of the band’s existing EMI contract, but the financier whose best man was William Hague, did not make enough on an impression to persuade him to commit to a new deal.
Mr Hands’s venture capital group Terra Firma bought EMI last year for £2.1 billion. Since then, Radiohead have quit after a row over money and creative control, with singer Thom Yorke saying that the band was forced to make “the sign of the cross and walked away”. Sir Paul McCartney left after describing the company as “really very boring”.
The manager of Robbie Williams, one of EMI’s top selling acts, said last week that the singer was refusing to hand over his next album and accused Mr Hands of behaving like “a plantation owner” who had stumbled into the record industry via “a vanity purchase”. Coldplay, one of the label’s few US chart-toppers. are also considering their position.
The Rolling Stones have a five-year deal worth an estimated £14 million that expires in May. The band are aggressively canvassing alternatives, but The Times has learnt that EMI’s rival, Universal Music, moved into pole position after winning the rights on Tuesday to distribute a one-off live album. In March, The Stones will release a CD to accompany the Martin Scorsese film Shine a Light, in which they are filmed playing two live gigs at New York’s Beacon Theatre, with cameo apperances from Christine Aguilera and Jack White. It will be released by Universal’s Polydor label.
Sir Mick, Keith Richards, Charlie Watts and Ronnie Wood are understood to be “considering their options” over EMI. However, many believe that they will sign up to Universal – unless EMI or another music group is willing to make an aggressive last ditch counter-offer. One industry source said: “You’d expect the Stones to sign up with Universal if everything goes to plan with Shine A Light.”
Sir Mick is widely regarded as being one of the most financially sharp operators in the business. He licensed Start Me Up for Microsoft’s Windows 95 campaign, earning the band an estimated £6 million, but the vast bulk of income is made from touring. The most recent, Bigger Bangtour generated a record $437 million in ticket sales.
Those close to the negotiations said that the band did not feel comfortable with EMI – which is preparing to sack up to 2,000 staff in a restructuring operation. The label is hoping that it can persuade the band into a last-minute change of heart. “We have no indication that The Rolling Stones have any intention to sign to any other record label,” a spokesman said.
The band’s anticipated defection is all the more painful because despite the age of the band members – they are all in their 60s – they remain money spinners, generating an estimated £3 million a year for EMI, making them one of its leading acts.
Unsually, the Stones also control the rights to their catalogue of albums from 1971’s Sticky Fingers, and their intention is to take the catalogue with them. The albums still sell well, with the most recent, A Bigger Bang selling over 2.4 million copies worldwide.
Should the Stones sign to Universal it would reunite their catalogue. Their 1960s albums were controlled by Decca, now part of Universal.
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entertainment.timesonline.co.uk]