The rock band said Warner Music Group's "diminished resources" will leave it "unable to compete in today's global music marketplace". Linkin Park said it was responsible for 10% of the firm's music sales. It is due to record four more Warner albums.
The music firm said the "inflammatory" threat was a "negotiating tactic".
'Increasingly concerned'
The band, which blended rap and rock on hit albums such as Hybrid Theory and Meteora, said it would not continue with plans to record its next Warner Music Group (WMG) album, due in 2006.
"Linkin Park has become increasingly concerned that WMG's diminished resources will leave it unable to compete in today's global music marketplace, resulting in a failure to live up to WMG's fiduciary responsibility to market and promote Linkin Park," the band's management company said.
It added that Linkin Park had become concerned about WMG's ability to promote the band due to cost-cutting efforts at the music company.
Linkin Park's decision to postpone its next album and increase its reliance upon touring, merchandise and endorsements would be "disastrous" for WMG, its managers said.
However the company said the band's contribution to WMG profits had been overstated, saying Linkin Park albums accounted for around 3% of the company's US sales in the last five years.
"While Linkin Park's talent is without question, the band's management is using fictitious numbers and making baseless charges and inflammatory threats in what is clearly a negotiating tactic," a WMG spokesman said.
"Warner Bros Records has made significant investments in Linkin Park, and they have always been compensated generously for their outstanding worldwide success."
― Rambo, Tuesday, 3 May 2005 13:17 (eighteen years ago) link
― Rambo, Tuesday, 3 May 2005 13:18 (eighteen years ago) link
― Matthew C Perpetua (inca), Tuesday, 3 May 2005 13:20 (eighteen years ago) link
the boys bite.
they'll start swearing next.
― mark e (mark e), Tuesday, 3 May 2005 13:23 (eighteen years ago) link
Warner Music refused to put out any more Linkin Park material until they wrote a song that didn't deal with an adolescent's frustration with self or others, believing their "lyrical monomania" would leave them "unable to compete" in the global marketplace.
― miccio (miccio), Tuesday, 3 May 2005 13:37 (eighteen years ago) link
Looking down the road, though, personally I'd think they're thinking something like "Why not just set ourselves up to do a deal with Apple directly?" Or something similar, depending on how things start shaking out. I'd be doing that if I were at their level.
― Ned Raggett (Ned), Tuesday, 3 May 2005 13:40 (eighteen years ago) link
― charltonlido (gareth), Tuesday, 3 May 2005 13:41 (eighteen years ago) link
― miccio (miccio), Tuesday, 3 May 2005 13:41 (eighteen years ago) link
― Ned Raggett (Ned), Tuesday, 3 May 2005 13:42 (eighteen years ago) link
― charltonlido (gareth), Tuesday, 3 May 2005 13:44 (eighteen years ago) link
― miccio (miccio), Tuesday, 3 May 2005 13:45 (eighteen years ago) link
A group of private investors led by Edgar Bronfman Jr. bought Warner Music Group for $2.6 billion from Time Warner (nyse: TWX - news - people ) last year. Warner Music, which is set to go public, will pay a $141.5 million cash dividend to Bronfman, his co-owners and 10 top executives. The dividend will be paid ahead of the IPO.
So they aren't saying 3% of the company that puts out Batman movies
― miccio (miccio), Tuesday, 3 May 2005 13:47 (eighteen years ago) link
but damn they have milked their 2 album oeuvre to seriously max effect
- the remix album (which is pretty damn fine), live cd/dvd, jay-z mashup cashin.
which aint bad considering both albums proper hardly touch on the 40 minute level.
― mark e (mark e), Tuesday, 3 May 2005 13:48 (eighteen years ago) link
― miccio (miccio), Tuesday, 3 May 2005 13:51 (eighteen years ago) link
― Ned Raggett (Ned), Tuesday, 3 May 2005 13:53 (eighteen years ago) link
[x-post; not to prove a point - just throwing out more numbers]
― David R. (popshots75`), Tuesday, 3 May 2005 13:55 (eighteen years ago) link
― Huk-L, Tuesday, 3 May 2005 14:02 (eighteen years ago) link
― gspm (gspm), Tuesday, 3 May 2005 14:34 (eighteen years ago) link
Interestingly, only the Jay-Z team-up stuff is available on iTunes.
― Matthew C Perpetua (inca), Tuesday, 3 May 2005 16:07 (eighteen years ago) link
― Actor Sizemore fails drug test with fake penis (jingleberries), Tuesday, 3 May 2005 16:17 (eighteen years ago) link
― Alex in NYC (vassifer), Tuesday, 3 May 2005 16:48 (eighteen years ago) link
― Josh in Chicago (Josh in Chicago), Wednesday, 4 May 2005 15:36 (eighteen years ago) link
The request, members of the band say, galvanized their anger at the corporation, which has cut roughly $250 million in costs as part of a reorganization before its offering, mainly with layoffs and consolidation. The group says concerns that the public offering would reward investors while shortchanging the company and its artists led the band to ask to be released from its record contract last week.
The invitation to play at the stock exchange "just exemplifies how out of touch the ownership of the Warner Music Group is with our band," said Brad Delson, the group's guitarist and primary spokesman, in his first interview since the Grammy-winning band issued its demand in a written statement that criticized the company. "It doesn't make any sense to us why we would play a show at the New York Stock Exchange. I don't know what was going through their minds."
Linkin Park, which Edgar Bronfman Jr., the chairman of Warner Music, has described as "the biggest rock band in the world," says it is researching how it might legally sever its contract with Warner, which calls for the band to deliver four more albums. The band has released two full-length albums and three additional recordings through Warner, selling an estimated 17.9 million copies in the United States alone, according to Nielsen SoundScan. But the musicians say cutbacks at Warner have hurt the company's ability to market future Linkin Park recordings.
― john'n'chicago, Monday, 9 May 2005 13:44 (eighteen years ago) link
I like how that is seen as an informed judgment.
― Ned Raggett (Ned), Monday, 9 May 2005 13:46 (eighteen years ago) link
Ladies and gentlemen of the court, exhibit one in "...how out of touch the ownership of the Warner Music Group is with our band."
― john'n'chicago, Monday, 9 May 2005 13:48 (eighteen years ago) link
I'm not a "major labels suck" kinda guy, but I'm definitely a "major labels better be WAKING THE FUCK UP, PARTY'S OVER, OOPS OUTTA TIME" kinda guy, completely.
― donut debonair (donut), Monday, 9 May 2005 17:46 (eighteen years ago) link
― Ben Dot (1977), Monday, 9 May 2005 22:22 (eighteen years ago) link
Stupider has happened.
― donut debonair (donut), Monday, 9 May 2005 23:37 (eighteen years ago) link
― Siegbran (eofor), Tuesday, 10 May 2005 11:43 (eighteen years ago) link
― $V£N! (blueski), Tuesday, 10 May 2005 12:15 (eighteen years ago) link
They are pretty much in control right now; they're on top. Everyone is looking to them.
― Railroad one, railroad two, Tuesday, 10 May 2005 12:23 (eighteen years ago) link
― Huk-L, Tuesday, 10 May 2005 13:44 (eighteen years ago) link
The offering raised $554m for Warner, whose artists include Madonna. But it fell short of its $750m target.
Investors, led by former Warner Music boss Edgar Bronfman, bought the firm in 2004 from Time Warner for $2.6bn.
This time, shares were priced at $17, well below the $22-24 IPO range which Warner Music initially wanted.
The world's fourth-largest music company made its debut on the New York Stock Exchange on Wednesday but its shares quickly dipped below the $17 offer price.
Tough market
Warner Music plans to use the cash raised from its IPO to reduce its debt, which currently stands at $2.5bn.
GLOBAL MUSIC SHARERed Hot Chili PeppersSony BMG - 25.1%Universal - 23.5%EMI - 13.4%Warner - 12.7%Independents - 25.3%Source: IFPI figures for 2003
The IPO was timed to coincide with some upbeat news for the music industry, with data from researchers Nielsen Soundscan showing a small rise in US album sales during 2004.
The world's major music companies have been struggling to cope with the effects of CD piracy, increased competition and illegal internet downloads.
However, Warner's IPO has been criticised by some analysts for the high valuation underwriters gave to it.
Lower range
Warner Music's share offer comes at a sluggish time for the US IPO market, with many deals pricing at the lower end of expectations.
Last week, shares in investment bank Lazard fell 4% in its market debut after initially pricing at the bottom end of its estimated range.
Other artists in the Warner stable include The Darkness, Green Day, the Red Hot Chili Peppers and Linkin Park.
Recorded music accounts for 83% of the company's revenue, and music publishing for 17%.
Earlier this month, Linkin Park demanded to end the band's contract with Warner, saying the firm's "diminished resources" would leave it "unable to compete in today's global music marketplace".
http://news.bbc.co.uk/1/hi/business/4535983.stm
― Rambo, Thursday, 12 May 2005 03:30 (eighteen years ago) link
― chris andrews (fraew), Thursday, 12 May 2005 03:43 (eighteen years ago) link
https://www.youtube.com/watch?v=S8GY2cNTuEc
― m0stlyClean, Monday, 3 May 2021 23:56 (two years ago) link