The Rolling Stones Split from Their Record Label

According to Billboard Magazine, after nearly three decades with EMI, rock and roll's geriatric bad boys, The Rolling Stones, have decided to jump ship to a new label.

Although the exact terms of the new deal with EMI's rival Universal Music have not been disclosed, the digital and physical distribution of one of the most sought after catalogs in rock and roll will now fall under the direction of UMG's Polydor label.

Following the release of The Rolling Stones soundtrack for the Martin Scorsese rockumentary 'Shine A Light' by Universal earlier in the year, there had been speculation in the recording industry that a move by The Rolling Stones might have been in the works. The Stones released a statement on their move to Universal noting that their new label was: "Forward thinking, creative and hands-on."

It's one more hit to the body for EMI. The defection of the Glimmer Twins comes on the heels of the departure of both Radiohead and Paul McCartney from the label. EMI has had quite a struggle on its hands to hold on to some of their more high-profile artists since a takeover by the private equity firm Terra Firma last year. This along with other shakeups at the label, including the firing of close to one third of its workforce following the purchase of EMI by Tera Firma, has led to speculation in the industry that many recording artists are getting cold feet about doing business with the label. Still, EMI tried to make a positive spin on their falling out with The Stones, a spokesman for the label said: "EMI Music Group wishes the Rolling Stones well in their new venture and looks forward to a continuing relationship with the band through our long-term publishing agreement."

The move of the Rolling Stones from EMI to Universal Music Group in the long run might not result in a huge cut to the bottom line profits of EMI. The departure of The Rolling Stones from EMI will probably cause more damage to the labels image as a home for supergroups like The Stones, Radiohead and Paul McCartney, than it will to EMI's profits. Although The Stones made more money than any other musical act last year, music biz pundits are quick to note that the bulk of The Rolling Stones cash flow is generated from the bands live shows, not from record sales.

Johnathan Cohen, "The Rolling Stones Leave EMI For Universal" Billboard Magazine
Ben Fenton, "No Satisfaction for EMI as the Rolling Stones Abandon EMI" Financial Times