BEVERLY HILLS, Calif., July 5 /PRNewswire/ -- The Firm, Hollywood's
 most innovative management company, announced today it is launching a new
 artist-friendly music company, with records to be distributed by EMI Music
 in the U.S. and licensed for territories around the globe.
     The new music company will take the unprecedented step of splitting all
 profits with the artists signed to the venture rather than the traditional
 royalty structure. Multi-platinum recording artist and actress Mandy Moore
 and rock group Army of Anyone, featuring former members of Filter and Stone
 Temple Pilots, are the first to sign to the company.
     Jeff Kwatinetz, CEO of The Firm and architect of the new music venture,
 said, "This is an opportunity for The Firm to create a new music business
 model that shifts power back to the artists and the focus back to the music
 itself. While many in the music industry are pessimistic about the future,
 we think the possibilities are limitless if we can find fresh ways to
 support and nurture great art and the talent that creates it."
     "The innovative work we have done with David Munns, Alain Levy and
 their team at EMI on Korn, Ice Cube, 30 Seconds to Mars and others has been
 lighting the way. They are forward thinkers whose artist-oriented approach
 is empowering the creative community. Instead of whining about the
 difficulties plaguing today's music business, they are planning for the
 future," Kwatinetz added.
     The financial model created for the company is the latest in a series
 of deals by The Firm that are reengineering entertainment industry
 economics to strengthen common interests between artists and the companies
 they work with.
     As a consequence of these deals, The Firm has been evolving into a
 unique new kind of Hollywood company with the capacity not only to manage
 the careers of film and music artists, but to produce, market and promote
 their craft.
     A number of those groundbreaking deals have been supported by EMI
 Music, the world's third largest recorded music company.
     "EMI is delighted to distribute The Firm's music company in the U.S.
 and bring its artists to a global audience. The Firm's label roster will be
 another strong American repertoire source for EMI worldwide," said David
 Munns, Vice Chairman EMI Music worldwide. "Jeff shares my view that our
 changing industry sometimes calls for breaking the mold and pursuing new
 business models. As a result, we're already having success with the
 groundbreaking deal we did with The Firm on Korn and we look forward to
 this being another solid venture."
     Last year, The Firm engineered an innovative deal that put EMI and Live
 Nation in partnership with the band Korn so that all parties benefit from
 the rock group's overall success. Korn's first record under the agreement,
 "See You on the Other Side," is fast approaching 2 million units sold
 worldwide, and the band's touring numbers are exceeding expectations.
     In another recent deal with EMI, Firm client Ice Cube self-financed a
 new album and The Firm handled such record company functions as A&R,
 marketing, promotion and publicity for the newly created Lench Mob Records,
 while EMI handled distribution. The album, "Laugh Now, Cry Later," debuted
 top 5 in the U.S. three weeks ago.
     Mandy Moore said: "The current state of the industry challenges us to
 conceive innovative approaches in music. It is, therefore, especially
 exciting to be part of a venture in which artistic freedom is encouraged. I
 am thrilled by the opportunity to join forces with The Firm, as well as
 with those I've trusted throughout the years."
     Army of Anyone said: "We are so excited to be a part of the building of
 a new business model. We have been looking for a way to regain some
 artistic control, and we feel by partnering with The Firm, we are truly
 betting on ourselves and our team. For the first time in our career, we are
 in control of our own destiny."
     The Firm's music clients have excelled recently and currently are
 responsible for 9 of the top 100 and 11 of the top 200 records on the
 Billboard chart. Meanwhile, The Firm is aggressively signing new artists
 including "American Idol" winner Taylor Hicks, and is successfully breaking
 new acts including Flyleaf and 30 Seconds to Mars, who are signed to EMI's
 Virgin Records.
     The new music company, which has not yet been named, will be housed
 within the Firm's Beverly Hills management offices.
 
 

SOURCE The Firm