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The clause in question requires a pay-TV company to extend the best price and terms for a set number of films for one Hollywood studio to all studios it has contracts with Investigators believe the "cumulative effect" of the clauses keeps the price of Hollywood films high, resulting in higher pay-TV subscription fees for customers in the European Union The charges could further strain trans-Atlantic ties just as the long-running EU investigation into alleged antitrust abuses by Microsoft Corp While not going so far as to accuse the studios of forming an illegal cartel, the European Commission's investigation turned up similar language setting minimum prices in pay-TV contracts across Europe BSkyB spokesman Robert Fraser declined to comment; a Disney spokesman could not be immediately reached for comment The Commission contacted Hollywood studios and carried out inspections at the offices of pay-TV companies in Europe in late 2002 EU Set to Charge Hollywood Studios Jan 12, 11:15 AM EST European Union regulators are close to filing charges against Hollywood studios over a contract clause with pay-television companies that allegedly keeps the price of films high in Europe, sources said Monday Hollywood studios argue such clauses are not illegal and can work both ways â€â€? preventing studios from reselling a package of films for a lower price to another platform, for example "The truth is in a particularly competitive business supplying to an increasingly monopolized distribution sector, you use every trick you can, as long as it's legal," David Halbert, president of Walt Disney International Television, said in an interview last summer While it has declined to identify any of the companies involved, British Sky Broadcasting Group PLC and Walt Disney Television have confirmed they were among those contacted It's known as a "most-favored nation" clause after the status granted by Washington to trading partners nears a decision BSkyB has deals with all the main Hollywood studios and shows around 2,000 movie titles a year on its pay-TV channels An official statement of objections is expected as early as this month, the sources told The Associated Press on condition of anonymity Commission spokeswoman Amelia Torres declined to comment on the status of the investigation, which began more than a year ago, other to say that the Commission's concerns were known and no conclusions have been made " But Gary Fine, a Los Angeles-based entertainment attorney, advised one client not to participate in the first "Idol" series after examining the contestant's contract As the "American Idol" phenomenon begins its third season Monday on Fox, Fuller's franchise is raising questions about exploitation and the price of fame "Without the show, we wouldn't be recording artists," he said Fuller's company, 19 Entertainment, oversees not just the recording deal for "American Idol" stars, but also controls merchandising, touring, sponsorship and movie deals The final contracts between Fuller and his current batch of "Idol" stars have not been disclosed, and Fuller refused to discuss specific details of the arrangements It just taught us a lot about the business Fine isn't sure that would make much difference " â€â€?â€â€?â€â€? On the Net: "American Idol" contract excerpts: http://blogcritics Price of 'Idol' Fame? Jan 15, 2:11 PM EST <EM>Associated Press</EM> Simon Fuller is no professional singer Yet when a manager takes such a huge piece of a novice performer's earnings, it's hard for some not to view that deal with skepticism " Is there a way for the performers to get better deals? Maybe In an interview with Rolling Stone, however, Studdard wondered if "American Idol" had taken advantage of the contestants, citing commercials they filmed for free as part of the broadcast " More independent-minded performers might balk at the way Fuller fashions a performer's image (such as Aiken's metamorphosis from geeky gawker to slim slickster) We were exploited but not exploited In an interview last summer, he described many of his "Idol" relationships as "partnerships" in which he receives from 25 to 50 percent of all earnings They could work their way up through small clubs, make contact with talent scouts and spend years trying to get the attention of managers who have far less clout than Fuller " When it came to the Spice Girls, Fuller sees himself as the one holding the short end of the stick, insisting that his work made them a success But in 2002, the first "Pop Idol" winner Will Young collected an estimated $750,000, according to the Sunday Times "On the other hand, if I have a client whose primary interest is fame and fortune, then Simon's organization is certainly worth considering " The deal Fine saw also required "Idol" winners to participate against their international counterparts in the "World Idol" show â€â€? for $1,400 He hires Michael Crawford to take the lead "My deals are the best in the world "If I had an artist whose music was quirky and might take time to develop, then Simon's organization is not the one I would recommend getting involved with," he said Ruben Studdard told The Associated Press last summer that he had no complaints with Fuller, and described him a helpful career-shaping force who watched out for his well-being "With the Spice Girls, I was the partner, I was the sixth member of the group," he said " (That film, like 1997's "Spice World," was written by Fuller's brother Kim `American Idol' is what we like to call a crash course on the entertainment industry php Both RCA and J are Bertelsmann Music Group companies run by Clive Davis, an industry legend who engineered the creation of Whitney Houston, the Grammy-winning comeback of Santana and the breakthrough of Alicia Keys, among others ) <TABLE style="BORDER-RIGHT: #fff 1px solid; BORDER-TOP: #aaa591 1px solid; BORDER-LEFT: #aaa591 1px solid; BORDER-BOTTOM: #fff 1px solid; BACKGROUND-COLOR: #ebe4ce" cellSpacing=0 cellPadding=0 width=400> <TBODY> <TR style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"> <TD style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; PADDING-LEFT: 15px; BORDER-LEFT: medium none; PADDING-TOP: 10px; BORDER-BOTTOM: medium none"><B>Sponsored Sites</B></TD></TR> <TR> <TD><IFRAME src="http://html He has made peace, however, with Emma "Baby Spice" Bunton and Victoria "Posh Spice" Beckham, who have rejoined with his management firm for their solo careers It's unclear how much the "American Idol" stars have taken home for their work "It unfortunately takes two for exploitation," said Jayne Wallace, spokeswoman for the American Federation of Television and Radio Artists The contract he saw was non-negotiable and "gave so much power and control to Simon and his organizations that there would be little a lawyer could do to prevent certain things from happening "And in the U Fuller first started the "Idol" concept in Britain, where it was known as "Pop Idol," and then transformed the franchise into a worldwide phenomenon ) And stardom is not guaranteed: Guarini's album sold poorly, and he was subsequently dropped by RCA Fuller also tells them what to perform and where, like Clarkson's and "Idol" runner-up Justin Guarini's movie flop, "From Justin to Kelly Fine does not condemn Fuller's deals, but said he would not recommend them for everyone As creator of the "American Idol" franchise, Fuller manages every aspect of the careers of Clay Aiken, Ruben Studdard, Kelly Clarkson and all other instant "Idol" celebrities "I'd be lying if I didn't say there was an element of satisfaction about it," Fuller says now Yet there he is â€â€? collecting a fortune at the top of the pop charts He said performers are free to hire their own lawyers to oversee the deals org/archives/2002/09/05/204941 " The "partnerships" he forges with talent now, he said, prevent him from being dumped Fuller says that as the primary imaginative force behind these artists, and the one with the connections to transform Clarkson from struggling Texas waitress to pop diva, he deserves a larger percentage of their earnings " Fuller was fired in late 1997 amid a power struggle with the singers com/d/search/p/msn/html/ent/?ctxtId=40&Partner=msn_home_ent_ctxt&maxCount=2&type=news&bgcolor=ebe4ce" frameBorder=No width="100%" scrolling=no height=220></IFRAME></TD></TR></TBODY></TABLE> But Fuller earns far more than the typical 15 to 20 percent that most managers keep from their clients' gross earnings '" Fuller, a 43-year-old British music mogul, is the longtime manager of Annie Lennox and former manager of the Spice Girls, whose world-conquering "girl power" image he takes credit for creating Fuller promises top "American Idol" contestants a management contract with 19 Entertainment and a prearranged recording contract: with RCA Records in the case of Clarkson and Aiken, and J Records for Studdard I create 'Phantom of the Opera' and then say to Michael Crawford, 'Let's be 50-50 partners, or 60-40 â€â€? whatever the deal is Another section of the "American Idol" contract Fine disclosed described the aggressive image manipulation the performers must agree to, stating that the show "may reveal and/or relate information about me of a personal, private, intimate, surprising, defamatory, disparaging, embarrassing or unfavorable nature, that may be factual and/or fictional He does not dance and he doesn't play an instrument "More than that, I was the leading light in the group, but it was never reflected contractually because I was just the manager " She would not comment specifically on Fuller's practices, but said generally "most artists would sign a bad deal to get the break Six months later, the group fell apart "This is one-stop shopping "If you think of Andrew Lloyd Webber, if he creates 'Phantom of the Opera' he owns it S (Story continues below The Sunday Times of London estimated that Fuller earned about $44 million in 2002 and $60 million in 2003 "Most artists working on the old-fashioned model, how do you keep track of your publisher, your record company, your merchandise, your sponsorship agent, your touring agent? There could be 10 different people dealing with different areas of your life," Fuller said The Spice Girls broke in 1996 after being recruited by an audition ad that read, "No singing or dancing experience necessary "But we did a lot of commercials, dawg overture music business, people are so desperate to get in they're willing to sign everything away Crawford doesn't get a cut of `Phantom of the Opera,' and no one questions that," Fuller said |
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