CBS Corp. (CBS-A) has put plans into motion to resurrect their CBS Records franchise with a focus on the Internet as their distribution model.
The company has stated that they will start off small and rebuild the division. They will sign a small group of songwriters whose music will then be incorporated into shows on the CBS broadcast network, CW, and their various digital platforms.
"Music is a very essential part of the television production business," said Nancy Tellem, president of the CBS Paramount Network Television Entertainment Group. "We felt this was the perfect time to restart our CBS Records label."
CBS believes that it can take advantage of the very weakened music industry and be able to sign artists that are looking for help and promotion. Another part of their strategy is to reduce costs of licensing songs for the TV shows it offers.
Tellem added that it costs millions a year to license the music for their broadcasts.
CBS will market the artists through their various properties and others as well. They will sell downloaded music through iTunes, as well as their own music website, CBS Records. They will offer sell CDs through retail outlets as well, along with air time through their CBS Radio stations.
P.J. Olsson, a recent Grammy Award nominee, recently signed with CBS and said, "I jumped at the chance. I like the fact that they are not starting the largest record label around, but a cool label that could market artists in a different way."
The company didn't have trouble getting their old name back as Sony Corp. (SNE) stopped using the CBS Records name years ago.
I like the slow approach they're taking, and looking for unique artists to promote, not just trying to gather together as large a stable as they can.
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