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Forbes Report: Janet’s new album makes a lot of financial sense

In a report on Forbes.com, Hugh McIntyre talks about Janet’s upcoming album and the reason her new business model makes sense in a music industry landscape that has dramatically changed since the release of her most successful albums.

Why Janet Jackson’s Musical Comeback Makes A Lot Of Financial Sense

By Hugh McIntyre

Just a few weeks ago, Janet Jackson, one of the most celebrated artists of all time, announced her return after a seven year hiatus from recording music. Now 49, the singer faces a different landscape than she’s used to, and her comeback could have been an uphill battle…but in typical Jackson form, she’s doing things her own way, and it actually might end up being a great business decision.

She’s In Charge
For the first time in her career, it looks like Janet is going to be in charge of the entire album recording and release process. Instead of working with a major label as she has always done throughout her many years as a globally-adored star (after disappointing sales of her last album, Discipline, she and Island Records parted ways), Janet has started her own label, Rhythm Nation. The company gets its name from her fourth album, which remains one of her best sellers (thanks to the four number one hits that were released off of it). She has partnered with BMG to distribute the album, meaning she doesn’t have to worry about actually getting the record out there to consumers…she just has to make it.

By owning the label that will be releasing her upcoming eleventh studio album, Janet is not only paying for all the costs associated with recording and promoting an album herself, she’ll be reaping almost all of the benefits. While album sales aren’t what they used to be, she’s going to take home a much higher percentage of each sale than she likely ever has, as there are fewer people taking pieces of the pie. If she doesn’t overspend on production, making a profit could be easy.

It’s A Great Excuse To Tour
Somebody as massively popular as Janet Jackson doesn’t really need to produce new material in order to venture out on a worldwide trek, but it does give her a great excuse to do so. Touring is where most of an artist’s money comes from these days, and a star like Janet can command hundreds of thousands per night. There are only so many “Greatest Hits” shows a singer can do before it feels like selling out, so even if she only performs a few new cuts, touring under the guise of promoting a new record is a tried and true route to a financially successful year.

She’s Got Nothing To Prove
At the end of the day, little to nothing is riding on the success of the album itself. If she manages things correctly, nobody will judge her should the record flop commercially. Janet is already one of the most successful pop icons of all time in every sense, and her legacy is not riding on how well a later record performs. If she focuses on creating a well-crafted album that has integrity and meaning, instead of reaching for top ten hits and blockbuster sellers, her fans will appreciate it, and she won’t be lambasted in the media as some other older pop stars are. It’s tough to be on top of the charts and all over radio after so many decades, but really great music knows no age, and can come from anywhere.

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Janet starts own record label: Rhythm Nation Records

Janet Jackson has today taken to Twitter to announce details of her new album and the establishment of her own record label, Janet Jackson’s Rhythm Nation Records.

The as yet untitled album will be released in the Fall and the label will become the home of new and existing artists too.

Janet’s first album since 2008’s Discipline will be released via BMG in an unique deal to enable artists to retain control over their work. The artist services deal means that Janet will retain ownership of her recordings and full oversight of all costs and revenues.

BMG CEO Hartwig Masuch said, “Janet is not just a supreme artist, she is a unique cultural force whose work resonates around the world. It is an honor that she has chosen BMG to release her long-awaited new album. We look forward to collaborating with her across every platform.”

Janet commented, “Thank you to the talented team at BMG, my new artistic home. The opportunity to be creative in music and every form of entertainment has great potential here.”

Jon Cohen, EVP of Recorded Music at BMG Chrysalis US said, “Janet is a cultural icon and pop star like no other. The release of her long-awaited new album will undoubtedly be one of the musical highlights of 2015. It is an honor to work with her.”

Fans have been anticipating new music ever since Janet published a video in which she confirmed she’d be releasing a new album this year as well as heading out on a world tour.

It was reported by RadioFacts that Janet’s latest material will be published by BMG.

The last time Janet released a single was Nothing in March 2010 which was recorded to coincide with the release of the film “Why Did I Get Married Too?

BMG TO RELEASE JANET JACKSON’S FIRST NEW ALBUM IN SEVEN YEARS THIS FALL 2015 THRU HER OWN RHYTHM NATION RECORDS

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NEW YORK/BERLIN, 3 JUNE 2015 – BMG is proud to announce that it will release the first album in seven years from Janet Jackson, icon, music artist, B.E.T honored, award-winning songwriter, producer, singer, Oscar and Golden Globe nominee and winner of the NAACP Best Supporting Actor award, publisher, dancer, businessperson, philanthropist and one of biggest-selling artists in popular music history.

The worldwide partnership with Janet Jackson’s Rhythm Nation will see the release in Fall 2015 of her first as-yet-untitled album and a commitment to pursue the full range of options within the broader Bertelsmann group of which BMG is part. With Rhythm Nation Janet Jackson becomes arguably the first female African-American recording artist to form her own record label. At Rhythm Nation Janet plans to offer a home to both new and established recording artists.

The partnership with BMG makes Janet Jackson the biggest worldwide superstar yet to quit the traditional record label system for a so-called artist services deal, designed to put artists in the driving seat. Unlike a traditional record deal, under an artist services deal the artist retains ownership of their recordings and full oversight of all costs and revenues.

With sales of over 160 million records worldwide, Janet Jackson stands as one of the best-selling artists of all time as well as one of the most awarded with a string of hits that have left an indelible impression on pop culture. Her lengthy string of hits has powerfully influenced popular music, leaving an indelible impression on pop culture and opening doors through which other top artists have followed, many acknowledging her impact on their musical perceptions.

Ms. Jackson’s May 16 announcement of an upcoming new album and a world tour via #ConversationsInACafe sent fans into a social media frenzy.

BMG CEO Hartwig Masuch said, “Janet is not just a supreme artist, she is a unique cultural force whose work resonates around the world. It is an honor that she has chosen BMG to release her long-awaited new album. We look forward to collaborating with her across every platform.”

Janet commented, “Thank you to the talented team at BMG, my new artistic home. The opportunity to be creative in music and every form of entertainment has great potential here.”

Jon Cohen, EVP of Recorded Music at BMG Chrysalis US said, “Janet is a cultural icon and pop star like no other. The release of her long-awaited new album will undoubtedly be one of the musical highlights of 2015. It is an honor to work with her.”

Janet began her career at the age of seven when she first performed with her family at the MGM in Las Vegas. The worldwide breakthrough came with her third album Controlin 1986, her legendary collaboration with Jimmy Jam and Terry Lewis which created the musical fusion of pop, R&B, soul, dance, jazz, rock and rap which defines her unique sound. Control won four American Music Awards out of twelve nominations and was nominated for an Album of the Year at the Grammys.

Next came Rhythm Nation 1814, a socially-conscious album critiquing injustice, illiteracy, crime, drugs, and racial intolerance, which last year celebrated its 25thanniversary. It remains the only album yet to have launched number one hits on the Billboard Hot 100 in three separate calendar years

1993’s janet sent her career into the stratosphere and brought the worldwide smash ‘That’s The Way Love Goes’. From 1995’s Design Of A Decade retrospective through studio albums The Velvet Rope, All For You and Discipline, Janet has continued to thrill and inspire her fans worldwide.

Janet Jackson is one of very few music artists to have also achieved a successful acting career. Initially known as a young TV star, her first three films opened at number one at the box office with her next two big screen projects opening in the top three. Janet’s music has also made an impact in the film world when the artist received an Academy Award Nomination in the Best Music, Original Song category.

Zach Katz, Chief Creative Officer, BMG Chrysalis US, said: “Janet’s list of achievements and accomplishments is truly staggering. She is a global artist whose career has touched on virtually every area of popular culture. Her new album will undoubtedly have a significant impact. We look forward to collaborating with her and Rhythm Nation to nurture a new generation of artists.”

Venus Brown, for BMG Chrysalis US added: “As die-hard fans of her work and of the musical jewels that Janet Jackson has bestowed upon the world, we are beyond thrilled that she has chosen BMG to be her new partner. Her music and her video and concert styling, particularly Rhythm Nation 1814, changed the course of pop music.”

The agreement with Janet Jackson’s Rhythm Nation Records is the latest high-profile milestone for the new BMG, just six-and-a-half years since its launch. Key to the BMG approach is a commitment to transparency and fairness to artists, typified by its Artist Services deals. Over the past year BMG has released albums by the likes of alt-J, The Smashing Pumpkins, Anastacia, Backstreet Boys, Nena, Bryan Ferry, You Me At Six and The Charlatans.

Janet Jackson is represented by William Morris Endeavor, Sterling Winters Company, attorneys Tom Hoberman and Don Steele, and JDJ Entertainment.