Bad Boy Dropped??

[J]

Check it out!! I read in the January issue of VIBE that Arista dropped Bad Boy but kept Faith, Carl Thomas, and 112. Anyone have any further info or insight on this?

One. :cool:

[R DUNN]

Yep. Heard the same thing. Talked to one of my partners last night who works with 112. Don't know the future of Bad Boy and actually 112 didn't renegioate their deal with Arista in the midst of the fiasco and don't have a deal right now with anyone he said. Think they're fielding the best offer. I'll put in more info when I find out.

[J]

Thanks for the feedback R! Something must have went bananas between Bad Boy and Arista for them to get dropped. Doesn't make sense especially with Bad Boy on the come up this last year. I also heard P. Diddy was seeking new management, namely Brittany Spears and N'Sync's manager.

One. :cool:

[R DUNN]

Yeah. But as you may realize everything ain't always peaches & cream with artists and labels. Just because people are on tv flossin and selling lots of records doesn't mean they're making a lot of money or turning a profit.

If your label generated $80M a year in record sales but it took $70M in overhead, production, videos, marketing, B.S. spending, etc. then you ain't really making no money. And I have heard that Bad Boy (as well as many other labels) is known to spend lots of money to make things happen.

And also realize labels like Bad Boy are usually 50/50 joint ventures. This means a major label like Arista will give them a budget (like a bank) to work on projects that year. They take the money they put in off the top, then the profits are split 50/50. Now using the above example, if Arista spent $70M to only make $5M (half of $10M profit) then damn right...this is not a very profitable joint venture for them. Time to go! These are just extreme example figures, but you see what I'm sayin....

[ 02-01-2002: Message edited by: R DUNN ]

[J]

True!!