Squeezing Money From the Music

NYT:

Lately, the major labels have in effect tried to move into the talent management business by demanding that new artists seeking record contracts give their label a cut of concert earnings or T-shirt and merchandise revenue — areas that had once been outside the labels’ bailiwick.

“They’re all starting to ask for the same things,” said Theo Sedlmayr, an entertainment lawyer based in New York who represents acts like 50 Cent.

There has also been a scramble to squeeze revenue from other unconventional sources, including amateur videos posted to YouTube that incorporate copyrighted songs. Universal Music threatened to withhold its huge music catalog from Microsoft’s new digital music service unless it received a royalty of more than $1 on each sale of the technology giant’s Zune portable music player.

Here.