milkbaby wrote:
It's not a very good financial move for EMI. If you consider that Korn sold 1.5 million copies of their last album and sales are dropping plus their last 2 tours went from grossing $16 million to $3 million, things look like they are going downhill.
If you figure the record company will make about $4 per CD, and sales drop to 1 million, it will take at least 4 albums for EMI to break even on CD sales. Also, even though Korn is grossing $3 million on their tour, that is not the net profit -- you have to subtract out all the costs such as manufacturing of t-shirts, crew salaries, housing, catering, insurance, etc. Their next tour may even lose money.
Korn is old news. The EMI A&R guy that signed them is gonna get fired and then Korn will have to break up from being too far in the hole to pay off the huge advance paycheck.
I'll go with this theory.
Naa, I don't think so, EMI can make the same caculation. They are not stupid.