NZ Idol has been dropped by recording company Sony BMG as auditions begin for the show's third season.
The multi-national label gave recording contracts to NZ Idols Ben Lummis in 2004 and Rosita Vai last year, but lacklustre sales have seen the company give up on the New Zealand version of the series.
Yesterday NZ Idol producers South Pacific Pictures confirmed Sony BMG would not be involved, and said it was in discussions for another deal.
The Herald understands numerous record companies were approached after Sony BMG's decision, but most were reluctant to take it on.
South Pacific Pictures, and the Idol format owners 19TV and format controller FremantleMedia, guaranteed there would be a record deal.
"We are not at liberty to release the details at this stage but positive discussions are taking place and we will make an announcement as soon as the deal is finalised," a spokesperson said.
Sony BMG gets the first option on the recording deal in Idol shows world-wide, but does not have to take it up.
An Idol insider said Sony BMG in New Zealand had treated Idol as "a banking exercise" and had ignored artist development.
"When you've had $5.5 million to make the show and make that person a household name, how come a multi-national company doesn't back that up with some sort of marketing campaign?
"It's only in New Zealand - look at the sales for Shannon Noll, and Guy Sebastian in Australia where the company's put the work in and they're superstars in that market."
Sony BMG's New Zealand representatives did not return phone calls.
In 2004, Ben Lummis' first single, They Can't Take that Away, was the highest selling New Zealand single CD. However, his subsequent single and CD did not perform as well, and Lummis and Sony BMG parted company in May last year.
Paul Ellis, who managed Idol contestants, including Vai, Lummis and Michael Murphy, hit out against the whole process soon after in a Sunday newspaper.
He said the time constraints meant Lummis' album was "crap" and "the worst-sounding album of my entire career".
"You don't make a record in 15 days and have it in the shops." He said he would not have signed Lummis up on his own merits if it had not been for Idol.
"Ben had good intentions from the people who care. TVNZ cares. I care. BMG doesn't care."
Rosita Vai's single All I Ask made it to No 1, and her album Golden was praised by critics, but did not make it to the top 40.
Both Vai and Lummis are now playing at public events and in church halls, and Michael Murphy is back to the more traditional musicians' journey of touring pubs and clubs with his band.
This year's prize pool has been boosted to include $50,000 cash and an SUV as well as the recording deal.
According to the Idol website, the prizes are to entice more people to want to be the next Ben Lummis or Rosita Vai:
"Although the two haven't made huge careers out of their Idol fame, it is hoped the $50,000 prize this year will attract more promising talent."
Auditions will be held in Auckland this weekend, following the first round in Christchurch last weekend.
Record giant scratches NZ Idol
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