Summary Case 3

e 3Summary

Compass Records is a music record company or record label that founded in 1995. Compass records are founded by Alison Brown and his husband, Garry West with support of the investors that believe in them. Brown was a bankers that love music so much and finally she decide to join this industry. Brown and Garry dint let their investor down and bring Compass records a great success in these few years. Even through Compass records is just a tiny in the music record industry but it have grown steadily for these ten years. And now, they have more than 50 artists under the company and more than 20 albums release each year. Unlike others big company, Compass records dint got huge budget for their artist. SO they need to plan well for every single decision they made. And now, Brown and Garry found a new artist that is really talented, Adair Roscommon. They really like her and believe in her talent to be a great artist. Roscommon had her first self-release album that has sales of 2500 copies just by her van in 2003. Not only that, she had won the “The best new artist of 2004” of influential Boston folk radio station WUMB. Brown and Garry would like to have her to join their company as their new artist. But the only problem is they are undecided about either to produce or own her next master or simply to license the finished recording. There are pro and con regarding to own the master recording or licensing. Brown and Garry got difference opinion in this case.

Question 4

Are there qualitative issues that we should address, but which are not reflected in the DCF analysis?