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" Over the years, the music industry has seen many artist-run projects, but few have achieved lasting success Record Cos Some artists also opt for straight distribution deals, where they pay all the recording and marketing costs, but keep most of the profits "They rely on the distributing label for some of their services, and of course the distributing label has its own records to sell, and there lies the rub," Castle said Maverick Records flourished early on But by 2001, Maverick was struggling Go start your label, and let us know when you're ready to start your first act,'" said Universal Records president Monte Lipman Grand Royal, a joint venture between the =/artist/?artist=126949 class="art">Beastie Boys and Capitol Records, tasted success shortly after launching in 1993, but dissolved in 2001 because of debt and lackluster sales While some artists have proven their ability to find new acts, record companies today are more likely to seek a deal with a producer or an independent label with a proven record, Lipman said Other artists, such as =/artist/?artist=100214 class="art">Eminem and =/artist/?artist=100361 class="art">Limp Bizkit frontman =/artist/?artist=128066 class="art">Fred Durst, have managed to thrive despite the industry's sales slump "Most artists, once they're successful, are given some sort of a production or vanity label deal," said Justin Goldberg, who was director of talent acquisition at Sony Music in the 1990s In its lawsuit, Warner Music accused Madonna and her partners of racking up $66 million in losses since 1999 "Eminem would be a perfect example of something going right," Goldberg said The episode reflects the sometimes tenuous and often financially risky nature of artist-run music labels More common are production deals, in which the artist is in charge of recruiting talent "People are pretty leery of getting into joint ventures," said Chris Castle, who worked for several years as a vice president of business affairs for A&M Records and later, Sony Music "There may be less incentive for the record company as well as the staff to promote the vanity label Management engineered a shakeup that resulted in the ouster of six top executives, including the label's president The record company takes a smaller cut and is in charge of placing the music in stores =/artist/?artist=104894 class="art">Mariah Carey's Crave label, which she launched with Sony Music Independent Labels in 1997, closed its doors in less than a year "I think it's gotten kind of tarnished in the process Twelve years ago, =/artist/?artist=100390 class="art">Madonna decided to apply the business instincts that made her a superstar toward finding and developing new acts for her own music label Between 1992 and 1999, Maverick managed to put together a string of successful acts, placing Madonna and her two business partners, Guy Oseary and Ronnie Dashev, in a strong position to renegotiate their initial seven-year deal with Warner Corporate belt-tightening also squeezes resources, leading to friction between the parent company and the artist In an industry where more than 90 percent of artists fail, the chances are slim an artist-label venture will turn a profit The company typically fronts all the money to keep the label in business while the artist handles the job of signing and developing new acts Durst signed rockers =/artist/?artist=234056 class="art">Puddle of Mudd and =/artist/?artist=107287 class="art">Staind to his Flawless label Profits, if any, are usually split evenly "It's mostly akin to giving them another advance, and it's just part and parcel to the whole process of keeping artists happy "The thing about Maverick is that Maverick actually was a real record company," Castle said Often, they are overwhelmed by the business aspects of the music industry or are forced to disengage from their label to cope with the demands of their careers "They become disillusioned with what it takes to break a new artist and how long it takes to recoup that money," said Jay Cooper, West Coast entertainment chair for the Greenberg Traurig law firm Some are seen as merely vanity-driven ventures or tools for record companies to curry favor with their big-name acts Under the terms of the settlement, Maverick will live on under Oseary but without its superstar founder or Dashev, who also was bought out "Back in the day, when the industry was a lot healthier, it was, 'OK, here's $2-$3 million Artists also are sometimes to blame Over the years, several artists have dabbled with their own label deals, some enduring longer than others " Wary of Vanity Deals Jun 27, 7:48 PM EST <EM>The Associated Press</EM> LOS ANGELES -- With the music industry looking to cut costs amid lower profit margins, record companies see fewer incentives to investing in artist-run label projects The record company pays for recording, marketing and distribution, then pockets all profits and gives the artist a cut of royalties Eminem's label, Shady Records, a joint venture with Universal Music Group's Interscope, scored a huge hit with New York rapper =/artist/?artist=108293 class="art">50 Cent The label-parent relationship soured, landing record company and artist in a nasty legal dispute that was settled June 14, with Warner buying out Madonna It generated hits by the likes of =/artist/?artist=100015 class="art">Alanis Morissette and =/artist/?artist=105407 class="art">Prodigy, validating the decision by Warner Music to form a partnership with its biggest star " Maverick alleged in its lawsuit that its parent failed to fund the label's operating expenses and deliberately cheated it out of its share of profits "Those days are absolutely over " Joint venture deals, like the one Madonna struck with Warner in 1992, are generally the riskiest label deal for a record company But Maverick's good fortunes started to turn during the industrywide sales slump that began in 2000 S "I would've at least asked for a phone number 25 Internet worm attack McWilliams said he had duped Verton because he wanted to teach reporters "to be more skeptical of people who claim they're involved in cyberterrorism The Web site of Computerworld magazine published on Wednesday an article penned by journalist Dan Verton that he based on an e-mail interview with a person he identified as "Abu Mujahid," a member of Pakistan-based Harkat-ul-Mujahadeen " Experts have been unable to trace the origin of the so-called Slammer worm and say they have no evidence terrorism was involved A four-year staff writer for Computerworld and a former Marine intelligence analyst, Verton thought he had a scoop and wrote a splashy story that said Harkat had acknowledged releasing "the Slammer worm as part of a 'cyber jihad' aimed at creating fear and uncertainty on the Internet " "I feel like I've been had, and that's never an easy thing to swallow," Verton wrote hackers had attacked the site Verton wrote that "Mujahid" claimed the group, believed linked to Osama bin Laden's al-Qaida network, had unleashed the destructive Jan "Every reporter can learn from things like this com/securitytopics/security/cybercrime/story/0,1080 said Traditional journalism ethics dictate that reporters don't misrepresent their identities McWilliams said it's he who is incredulous com and Wired News "I wanted to see whether he'd go the extra mile to see who he's dealing with," McWilliams said " But Mujahid was really Brian McWilliams, 43, a free-lance journalist in Durham, N " For the magazine's part, Johnson said the experience was "a real good object lesson" in the risks of e-mail interviews " Not only did McWilliams cloak his true identity, but, McWilliams said, he left a mirrored version of the Web site on a server in Pakistan, and even sought to boost its authenticity by defacing it in an effort to make it appear that pro-U "I couldn't believe a journalist could do this to another journalist," Johnson said Computerworld is a trade magazine based in Framingham, Mass On Thursday, Computerworld published a new story by Verton titled "Journalist perpetrates online terror hoax " â€â€?â€â€?â€â€? On the Net: " About three hours after Verton's story appeared on Wednesday evening, Computerworld removed it from the Web site and replaced it with a disclaimer saying it was taken down "due to questions about its authenticity," Editor-in-Chief Maryfran Johnson said He said he had trouble believing Verton and Computerworld would publish such a story without checking the Web site's registry or his e-mail header information H Web Magazine Retracts Virus Attack Story Feb 7, 10:22 AM EST In a bizarre case of one journalist deceiving another, an Internet news site published â€â€? then embarrassingly retracted â€â€? a story that claimed a radical Islamic group was behind a virus-like attack that clogged the Internet After the story ran on Wednesday, Johnson said she received a call from a friend who reported that McWilliams was bragging on an e-mail list about having tricked Computerworld , and published by International Data Group o rg â€â€? one transliteration of the group's name â€â€? for use as a "honeypot" to attract correspondence from Muslim radicals, planning to use messages received as story fodder "So, I'm left here scratching fleas as the price you sometimes pay for sleeping with dogs McWilliams' online journalism methods created the climate for deception , whose employers include Salon McWilliams said he regrets letting the scheme progress to the point of publication He didn't ask for any sort of corroboration The story had also been advertised to 200,000 recipients of Computerworld's daily e-mail, Johnson said Had they done so, they would have learned that Abu Mujahid was in the United States, not Pakistan He said he registered the Internet domain name harkatulmujahideen "We've gotten so comfortable with the medium that we forget that," she http:// www " Verton, who frequently reports on hacking and computer security, said he fell victim to "an elaborate scheme to dupe security companies and journalists Verton said the hoax was convincing enough that his calls to the FBI's National Infrastructure Protection Center turned up no clues to its inauthenticity McWilliams defended the technique, saying it was "in the grand tradition of undercover reporting computerworld |
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