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CNN Live At Daybreak

Virgin Records Paying Mariah Carey Not to Sing

Aired January 24, 2002 - 05:57   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Mariah Carey is getting paid millions not to sing for Virgin Records.

Our own Richard Quest tells us why.

(BEGIN VIDEOTAPE)

RICHARD QUEST, CNN CORRESPONDENT (voice-over): Mariah Carey says she's recovered from her very public breakdown late last year, but her career continues to suffer. After signing her to one of the world's richest multi-album contracts, EMI's decided it's cheaper to let her go, paying her half as much to walk away after just one.

Unfortunately, that one album was a disaster. "Glitter," the soundtrack to her film debut, sold just around two million copies, less than a tenth of what her hit record "Music Box" sold in 1993. And adding insult to injury, EMI spent $7 million alone promoting "Glitter."

EMI says they'll write-off all the costs associated with the contractual breakup at the end of the fiscal year.

GARETH GRUNDY, Q MAGAZINE: Effectively, they're just cutting their losses. They're looking at somebody who is effectively probably going to start losing them money over the next few years because she's a very expensive artist to run. So it's, well, you know we can take this hit now or you know maybe over five years it's going to cost a bit more than that.

QUEST: The company's new chief, Alain Levy, has been slashing costs, cutting salaries since he took over, and the bold decision to push Carey out is seen as a sign that multi-album contracts are on their way out too. Instead of signing an artist to record several albums, superstars will have to prove themselves one hit song at a time.

GRUNDY: From an artist's point of view, like they get to a certain level and they pick up these things as a -- as basically a financial reward for a very successful career. And then it seems like they just sort of, you know, rest on their laurels and make the record that they want to make that's not necessarily, you know, going to be a huge commercial success. And there isn't a lot record companies can do about it, but they certainly -- for that reason they'll be -- they'll be very nervous. QUEST: For Mariah Carey, there'll be opportunity to do just that, she's due to sing "The National Anthem" at the American Super Bowl next month.

Richard Quest, CNN, London.

(END VIDEOTAPE)

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