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.

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