Report: KORN Deal Represents $25 Million Investment By EMI

September 14, 2005

Hits Daily Double, the companion web site of music industry tip sheet HITS, has issued the following report:

The partnership between KORN and EMI Music is most accurately described as a $25 million investment by EMI in a new company that is "in the KORN business," according to one familiar with the negotiations. Thus, rather than shelling out an advance to the band, as would happen in the traditional artist-label relationship, EMI will function as a profit participant in the band's business for two LPs and their accompanying cycles. The arrangement is characterized by insiders as a series of separate deals from the various revenue streams that live within the context of the new KORN partnership.

The challenge facing the two parties, says one in the know, was to find a way to align the interests of the label with those of the artist, so that the decisions made would ultimately benefit both parties. The concept behind this arrangement, the same source clarifies, was to make the pie bigger for everyone, so that the artists and their partners both make money.

The chief negotiators of the deal were band attorney Gary Stiffelman, who is co-counsel to KORN, along with John Branca (both are with Ziffren, Brittenham, Branca & Fischer) and EMI business affairs exec Ian Hanson. Significantly, it was initiated by EMI rulers Levy and Munns after they’d listened to the completed KORN album, the quality and potential of which compelled them to enter into this intricate, mathematically complex partnership with the band.

Read the rest of the article at www.hitsdailydouble.com.

Find more on
  • facebook
  • twitter
  • reddit
  • email

Comments Disclaimer And Information

BLABBERMOUTH.NET uses the Facebook Comments plugin to let people comment on content on the site using their Facebook account. The comments reside on Facebook servers and are not stored on BLABBERMOUTH.NET. To comment on a BLABBERMOUTH.NET story or review, you must be logged in to an active personal account on Facebook. Once you're logged in, you will be able to comment. User comments or postings do not reflect the viewpoint of BLABBERMOUTH.NET and BLABBERMOUTH.NET does not endorse, or guarantee the accuracy of, any user comment. To report spam or any abusive, obscene, defamatory, racist, homophobic or threatening comments, or anything that may violate any applicable laws, use the "Report to Facebook" and "Mark as spam" links that appear next to the comments themselves. To do so, click the downward arrow on the top-right corner of the Facebook comment (the arrow is invisible until you roll over it) and select the appropriate action. You can also send an e-mail to blabbermouthinbox(@)gmail.com with pertinent details. BLABBERMOUTH.NET reserves the right to "hide" comments that may be considered offensive, illegal or inappropriate and to "ban" users that violate the site's Terms Of Service. Hidden comments will still appear to the user and to the user's Facebook friends. If a new comment is published from a "banned" user or contains a blacklisted word, this comment will automatically have limited visibility (the "banned" user's comments will only be visible to the user and the user's Facebook friends).