|Mariah Carey To Be Dropped by Virgin Records|
|Home Theater News Music - General News|
|Written by AVRev.com|
|Thursday, 24 January 2002|
Pop superstar Mariah Carey is being dumped. Not by a new boyfriend or Tommy Motolla (president of Sony Music) again, but by her record label, Virgin Records.
After signing the largest recording contract ever ($80 million for four albums) the disappointing performance of the soundtrack to her film Glitter started industry insiders speculating about Carey being dropped from the EMI owned record label.
Virgin is reportedly paying Carey $28 million to end her recording contract early.
EMI had a poor financial performance in 2001 and this move is part of an overall cost cutting move. In September of 2001, the company estimated that its profit would fall approximately 20 percent. There were plans in the works for EMI to merge with Warner Music Group and later with BMG, but both deals fell flat due to anti-competition worries by the The European Union.
If Carey is in fact dropped, she will no doubt be pursued by another major label. If she is signed to a new contract it surely it won’t be for anywhere near the amount she received in the Virgin Records deal. Her personal problems have been a major focus in the press and one must wonder if Carey will even want to continue her music career or will opt to step out of the limelight.
Source: CNN.com, Rollingstone.com