But the fact that Virgin would dump an A-list star -- who, despite recent setbacks, ranks behind only the Beatles and Elvis in record sales -- underscores the perilous state of the music industry. Last year, labels suffered their biggest sales downturn in 18 years. As a result, music bosses are looking to cut costly, underperforming acts from their rosters. Atlantic recently parted ways with Tori Amos, Rod Stewart, and Collective Soul, while Warner Bros. quietly ended its relationship with Van Halen. Since taking the helm at EMI in October, chair/CEO Alain Levy has signaled a new sensibility favoring the bottom line over loyalty. In addition to ousting Carey, Levy also opted not to renew the contract of David Bowie, who hasn't had a platinum album since 1991.
''A lot of labels are going to think twice before they commit that kind of money on firm deals now,'' says Engel. Some speculate that the current climate could put Carey's colleague in high-flying divadom, Whitney Houston, in a precarious place. Last August, Arista signed Houston to a $100 million contract that some analysts say inflates her worth -- especially after her record of last-minute performance cancellations and her 2000 drug arrest (charges were later dismissed). Arista declined to comment.
So what is to become of Mariah? The singer, who launched her career in 1989 with a jaw-dropping rendition of ''America the Beautiful'' at the NBA finals, returns to the spotlight Feb. 3 to sing the national anthem at the Super Bowl, looking to reclaim her sweetheart status after a year of, um, strange behavior. (Remember that loopy appearance on ''TRL'' last July and her brief hospitalization for ''exhaustion''?)
But if lightning is to strike twice, many think Carey's first step is to find herself another Svengali. Her professional troubles first surfaced after leaving Sony -- and the tutelage of Sony honcho and ex-husband Tommy Mottola (whom she divorced in 1998 after five years of marriage). ''She insisted when she was shopping around this huge deal that she wanted artistic control in final decisions, which was probably her downfall,'' says one industry insider. ''She didn't trust one of these big guru guys, whether it's Tommy Mottola, or Clive Davis, or L.A. Reid, or whoever to guide her with this record. She could come back with a great ballad if she'll let somebody else have control.''
While ''Glitter'' hewed tightly to Carey's trademark mix of pop and hip-hop, a more plugged-in producer will have to persuade the singer to accentuate her greatest strength -- her seven-octave voice -- and ignore competition from younger artists like Britney Spears. ''Mariah is one of the best singers in the world,'' says producer Shep Crawford, who has worked with Luther Vandross, Boyz II Men, and Lil' Mo. ''At the end of the day, I want Mariah to get behind a mic and sing her butt off. When that happens, she will reclaim her diva status.'' At this point, perhaps Carey should ride out the storm before jumping into the arms of another label. Says Hayes, ''If I was advising on the dealmaking, I'd say, 'Let's sit back, take a year off, work on some new material, and clear your head.'''
Carey herself may be on the same page. Nine days before EMI announced its settlement, the star was talking up the non-musical aspects of her career at the Sundance Film Festival -- where she earned surprisingly decent reviews for her latest cinematic outing, ''Wisegirls,'' costarring Mira Sorvino. ''It meant so much to me to not be doing something for the money, to not be doing something predictable,'' she told Entertainment Weekly of the shoot. ''I wanted to quit my day job.''
For now, Mariah, it looks like your days are free.
(Additional reporting by Tricia Johnson)
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