...Time Warner is working on creating new standards for its music lyrics, and those familiar with the discussions suggested that Interscope ... may ultimately be uncomfortable with the new criteria.
...Some inside Time Warner expressed concern that Interscope has become an embarrassment for the company.... But Interscope, based in Los Angeles, is one of the most successful start-up labels of the decade.
Interscope generated $110 million in revenue last year, 25% from rap. Time Warner, which owns a 50% equity stake in Interscope, earned about $25-30 million from Interscope. Jimmy Iovine, head of Interscope, expects revenue to reach $150 million this year.
...Although Interscope is best-known for its association with rap artists, it also has a large stable of mainstream rock and pop performers, including balladeer Tom Jones ... [and] the rock group Nine Inch Nails, whose sexually explicit lyrics have also been criticized....
"Our original concept was to put out the most exciting black and rock music we could find," said Mr. Iovine.... "No one at Time Warner has even hinted that our relationship is in question," he said.
-- transcribed by nancy paulikas