'American Idol' drops Sony, signs with Universal Music Group for distribution deal

With world attention still fixated on who the new judges will be on Fox's "American Idol," producers for the show sent shock waves through the music industry by signing a distribution deal with Universal Music Group, ending the show's long relationship with Sony Music.

Under the agreement, UMG's Interscope Geffen A&M Records will distribute, promote and market albums from "Idol" finalists and winners starting next year when the show's 10th season launches. Sony's deal expired after the ninth season ended in May. If UMG's deal is similar to the one Sony had, then the company will have right of first refusal for the final 12 contestants on "American Idol."

In a statement to Company Town, "American Idol" creator Simon Fuller explained the move by lavishing praise on UMG co-CEO Lucian Grainge and Interscope Geffen A&M Chairman Jimmy Iovine.

"With 'Idol' celebrating our 10th season I wanted to inject some new power and weight behind our brand," Fuller said. "We have been quietly delivering hits relentlessly for nine seasons and Lucian Grainge and Jimmy Iovine's ambition, commitment and determination to push the boundaries and go even further with 'Idol' was very compelling."

Although album sales from past "Idol" winners and finalists have come to dominate the pop charts in the last decade -- with fourth-season winner Carrie Underwood selling 11.5 million albums and Kelly Clarkson, who won the show's first season, moving 10.6 million units according to Billboard magazine -- the announcement arrives at a transitional time for the show.

This year, "Idol's" ratings declined with judge Simon Cowell's announcement that 2010 would mark his last season with the show before leaving to launch his own talent hunt series, "The X Factor." Seven dates on the "American Idols Live!" concert tour -- a reliable money earner in previous years -- were scrapped last month because of lackluster ticket sales. As well, album sales from Season 9 finalists Lee DeWyze and Crystal Bowersox have been sluggish compared with Season 8’s winner Kris Allen and runner-up Adam Lambert, compelling some industry observers to wonder if "Idol's" long run as a cultural juggernaut has reached its limit.

As for the show itself, Fox, FremantleMedia and 19 Entertainment continue to inch closer to sealing a deal with Jennifer Lopez and Aerosmith front man Steven Tyler to be judges on the show this fall. Already gone are lead judge Cowell and Ellen DeGeneres, who gave her notice last week. Kara DioGuardi is also expected to be off the show. Original judge Randy Jackson is likely to remain.

-- Chris Lee

Comments

[Bystander]

"...album sales from Season 9 finalists Lee DeWyze and Crystal Bowersox have been sluggish compared with Season 8’s winner Kris Allen and runner-up Adam Lambert..."

Lee DeWyze and Crystal Bowersox haven't released albums yet, so there's nothing to compare.

[Rachel]

Good news! They have to do a better job than Sony did distributing Season 8 albums. Kris', Adam's, and Allison's albums came out before Christmas but no special promotion in the stores and the albums were difficult to find. Stores that ran out early had difficulty re-stocking. All the stores were well-stocked with Susan Boyle's album, however, and she reaped the benefits. Jive/RCA/Sony still isn't giving them any breaks. Kris' CD remains one of the most expensive on the shelf.

[ralph]

If your talking about the number of albums the contests have actually sold for RCA then it would be over 20 million for Kelly Clarkson and around 13 million for Carrie Underwood. I wish the press would report the sales numbers correctly.
Kelly has sold 10.6 million copies in the United States, but she has sold around 22 million for RCA world wide. Carrie has sold 11.5 million in the United States, and 13 million world wide.

[AnirakSparklechild]

I personally find all of this unsurprising. Most people lost interest in "Idol" this passed season.

[jeebus]

That's the truth Ralph. The media tends to only count U.S. revenue when talking about the success of an artist.
Like you said Kelly has sold 22 million albums (that includes albums sold outside the U.S.) which means she has raked in $220,000,000, that's almost a quarter of a BILLION dollars for RCA. While Carrie has sold a total of 13 million albums (which includes sales outside the U.S.) which means she has also made RCA a ton of money as well, about $130,000,000.
That said, it seems unfair that the media incessantly states that Carrie is the most successful person from American Idol, when clearly that is false.

[rigel]

Season 8 saw an exceptional group of contestants, which resulted in success for the American Idol brand. However for season 9, the producers selected a weak, bland and uninteresting group of participants and the drop in ratings and dismal tour sales are a result. Now we hear Idol is undergoing a renewal, with new judges, record deals etc. Make sure not to ignore what drives the show - the contestants. Season 10 must include a strong group of performers with presence and "star power" or the erosion of viewers will continue.

[demie]

rigel, i disagree i don't think it was the contestants they had some good contestants like Siobhan Magnus and definatly Crystal Bowersox.... i think less people may have not watched it this year cause Adam Lambert lost last year and alot of people still watched this year cause it was still the #1 t.v. show ratings

[bob]

it's b.s. saying that because frickin' screamin' Adam lost that people stopped watching. People, he's not all that.
The show is getting old and that's the reason. There's no two ways about it.

[fran]

I stopped watching because Adam is nothing but Kara song whore and Kara is his pimp and i am not watching this year if he is on there . the judges don't need to do that much pimping of there own songs we are just putting money in Kara pocket. Adam got to mentor because he is pimping Kara music AMERICA YOU HAVE BEEN PLAYED.

[Pat]

I think American Idol will fare much better without Simon Cowell and Kara whats her name. These two are largely responsible for choosing who goes through on auditions, and some remarkable talent didnt get through

After seeing Casey James on the 2010 Idol Tour, I believe he and Aaron Kelly are stealing the Idol Live Tour, and both should've placed higher on the AI TV show. Casey James completely brings the audience to life, and I'm sure he's gaining more fans on every tour stop. Both Casey and Aaron are going country, but Casey has said he wants to bring blues rock, and pop along with.

The music on Kris and Adam's albums was over-produced. Both of these guys are super talented and should've had better albums.

[Zara]

Could this be related to the recent news that Allison Iraheta has parted ways with her label, Jive records? Since she's still under 19's management, could they have moved her to UMG?