Lots of giggling this morning about a potential deal between Warner Music Group and cyber-gossip Perez Hilton. And at first blush, this seems like a classic “clumsy old media looks for youth appeal, goes about it in the wrong way” story.
But what’s so awful about this deal, at least as decribed? WMG gives Perez $100,000 a year as an advance, and in exchange he signs artists for a WMG imprint, and keeps half of any profits. Perez has an odd but very real following on the Web, so there’s a bona fide marketing benefit right there. And if that $100k a year really is an advance, and not a salary, it’s a pittance by big label standards.
It’s easy enough to beat up the labels for the real bone-headed mistakes they make. But this deal doesn’t seem like one of them.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.