More Details On Record Deal
(16-3-2010) As you have probably heard by now, administrators of Michael Jackson's estate and Sony Music Entertainment, have announced what is being called the biggest recording deal in history: a $200 million guaranteed contract for 10 projects over seven years. The record-breaking contract through 2017 could be worth up to $250 million if certain conditions are met.
"During his life, Michael's contracts set the standard for the industry," said John Branca, the co-administrator of Jackson's estate, in a statement prepared for release Tuesday. "By all objective criteria, this agreement with Sony Music demonstrates the lasting power of Michael's music by exceeding all previous industry benchmarks."
Branca went on to say, "We and Sony feel that the future for Michael Jackson is unlimited."
Rob Stringer, chairman of Sony Music's Columbia Epic Label Group, said in prepared remarks, "We're dedicated to protecting this icon's legacy and we're thrilled that we can continue to bring his music to the world for the foreseeable future."
Future projects may include a DVD compilation of videos and a re-release of "Off the Wall" (originally issued in 1979) next year that will contain a treasure trove of new, exclusive material.
"The stuff we have in the vaults around that record is fascinating and remarkable," Stringer said. "We're going to build a whole platform with a documentary. The outtakes are fantastic! We have a lot of great stuff from around every time period [in Jackson's career]. We're plowing through everything now to understand what we've got."
Jackson estate co-executor John McClain - a 40-year confidant of Jackson's who produced part of his 2001 album "Invincible" - is spearheading the selection of previously unreleased material for an album that could hit shelves later this year; possibly in November.
"John McClain tells me they've got over 60 unreleased recordings that they're choosing from," Branca said. "The first album will have around 10 [tracks]. There's some very recent stuff and vintage stuff that deserves to be shared with Michael's fans."
Stringer went on to describe the deal as a landmark for the recording industry saying, "The audio rights span across different projects. There may be theater. There may be films and movies. There may be computer games -- or multimedia platforms that I don't know about today that will happen in 2015."
Although Sony enters into the new agreement at a time of plummeting album sales and widespread music industry contraction, sales of so-called "legacy acts" and Jackson's in particular, suggest the potential upside of the agreement. In the nine months since Jackson's death, more than 31 million of his albums have been sold worldwide with two-thirds occurring overseas.
Those sales and recent licensing deals have brought in close to $250 million to the estate, easing a substantial portion of the nearly half-billion dollars of debt Jackson owed to financial institutions at the time of his death.
The Elvis Presley estate takes in between $50 million and $60 million annually through music sales and licensing deals. The Beatles continue to thrive in the marketplace four decades after their breakup and despite the deaths of two members, John Lennon and George Harrison. In fact, more than 60 million Beatles albums have been sold in the US since Nielsen SoundScan began tracking retail sales in 1991.
"If you look at Elvis and the Beatles, and how their brands are thriving, they only hint at what the future holds for Michael," Branca said.
Source: MJFC / latimes.com / AP
Wed Mar 17, 2010 3:05 pm