WMG’s Edgar Bronfman Jr. On “Risk Capital” And Artist Exploitation
"Fundamentally, we are the risk capital. We're prepared to take the capital risk on a new artist and we're building a company so that we can exploit on behalf of the artist all the revenue streams that are made possible by that initial investment." – CEO Edgar Bronfman Jr. on signing half of the Warner Music Group's artists to 360 deals in an extensive Finanical Times interview.
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He talks like they’re a venture capital company, but VC’s take a minority stake for their investments. If a label invests $1M into a band, that shouldn’t entitle them to own the intellectual property, plus take 80%+ of the revenues. Just a load of crap coming from the flunkie. The only Canadian I DON’T like.
Blaine, that’s not entirely accurate. Most lead early stage VCs most definitely take a majority stake in the new ventures they invest in.