William Morris to Sign On to New Venture--Records

The William Morris Agency has announced plans to set up its own record label after receiving permission from the union that represents musicians.

The Hollywood talent agency has yet to work out a name, staffing or corporate strategy, but said those issues would be worked out over the next three months and the label would be operated as a separate entity.

“It seemed like a natural thing that didn’t present any conflict issues,” said the agency’s chief operating officer, Walter Zifkin.

Talent agencies cannot own a TV network or a movie studio because of the potential conflict of interest arising from handling both ends of the deal. It would be virtually impossible for a major agency to enter the film business without employing an actor, director, producer or screenwriter on its own roster.

But in the music business, artists are represented in their record deals by managers and attorneys, while talent agencies only arrange their touring schedules. Musicians also generally sign long-term agreements with music companies and don’t change companies from project to project like actors.

Nevertheless, William Morris sought approval from the union that represents musicians, the American Federation of Television and Radio Artists. The group decided at a meeting Saturday that the new label was “not adverse” to AFTRA members, Zifkin said.

William Morris has signed no acts yet and is expected to seek outside executives to run the label. Other issues under discussion include whether to buy an existing label or to start one from scratch.

While the music industry has suffered from flat growth in recent years, margins are still better than they are in movies.