Yankee Hotel Foxtrot - Dismissal From Reprise Records

Dismissal From Reprise Records

In 2001, AOL merged with Time Warner to form AOL Time Warner. Time Warner's market share of the music industry had dropped by almost five percent from the mid-1990s, and the new executives ordered the termination of 600 jobs. One of those jobs was Reprise Records president Howie Klein, who had been a big supporter of Wilco on the label. Klein's dismissal caused head A&R representative David Kahne to be in charge of deciding whether to release Yankee Hotel Foxtrot.

Josh Grier, Wilco's lawyer, was able to negotiate a buy-out of the band from Reprise. The band would keep the rights to the album if they paid Reprise $50,000. Before Wilco could accept the deal, Reprise called the band and changed their offer to give the band the rights to Yankee Hotel Foxtrot for free. Despite Reprise's efforts to accommodate Wilco's departure, the process marred public relations after an article in the Chicago Tribune described what had happened.

Wilco had planned on releasing Yankee Hotel Foxtrot on September 11, 2001, but Tweedy did not want a change in record labels to significantly delay the release of the album. Within weeks of being released from the label and Jay Bennett leaving the band, MP3s of all tracks from the album began to appear on file sharing networks. In a decision aimed at discouraging the pirating of lower quality MP3s and having some control over how the album was distributed, on September 18, 2001, Wilco began streaming the entirety of the album on their official website. The wilcoworld.net website registered over 50,000 hits that day, eight times as much as typical daily traffic. Traffic to the website quadrupled the normal traffic over the next few months. The following tour was a success financially, and members of Wilco observed that fans sang along with unreleased songs on the album.