Dueling plot lines continue at Sony & Universal Music; Interscope headed to a crossroads?
Big changes ahead?
The action at Sony Music under new leader Doug Morris has been closely followed and well-publicized, after less than two months under his belt at the top spot, with the recent somewhat brackish news consisting of new appointments and promotions as well as layoffs at the label group. Last week saw reporting that two more senior Jive executives who were thought to be heading to the new Epic label group under L.A. Reid, are instead leaving the building. Now it seems time for the dueling plot lines at Universal Music Group under Lucian Grainge to take the spotlight for a moment, with the CEO giving his first “major” interview to the New York Post (whose music biz coverage has continued to ramp up), appearing over the weekend. Grainge’s comments focused almost entirely on his A&R philosophy and conflict-based management style, saying “I’ve always liked to work in a state of creative conflict. It doesn’t mean you fall out with people in your company or an artist; it’s about discussing a song or direction.” Also emphasizing a “completely global approach,” which coincides with the naming yesterday of Andrew Kronfeld to a newly created position of President, Global Marketing. More new appointments include Karen Kwak to Executve Vice President, Head of A&R at the newly forming Island Def Jam Music Group, a promotion from previous senior A&R positions at the label, while Roc Nation producer No I.D. has been handed EVP A&R stripes at Def Jam Records. However, other comments from Grainge might be a different kind of omen, with word of layoffs in the A&R department at Interscope Records coming at the close of last week. Some insiders are indicating that label chief Jimmy Iovine, whose name could be considered synonymous with the Interscope brand, is losing interest in running the label and becoming more and more interested in outside ventures. Observers are curious what Grainge’s move would be if his resident hit-maker were to depart of his own accord, and who might be in line for his seat? Stay tuned…
07.27.11Bits & Pieces: BMG Bids, Warner to Unload Weight & New Motown/Island Def Jam Takes Shape
Transitions to IDJ Group
The New York Post reported this week that KKR and Bertelsmann-backed BMG Rights Management, as expected, submitted their bid for EMI last Friday, while the other favorite Warner Music is believed to be submitting this week ahead of a July 28 deadline. The Post also reported that new Warner owner, Access Industries, is preparing for cutbacks in the WMG workforce up to 5%, primarily outside of the U.S. – reductions that are believed to be directly related to a possible EMI acquisition. Others are noting the dramatic uphill climb the new Warner Music owners face in an industry that reported growth of just 1.6% this year, the first time in 7 years, with album sales still in decline. Is a successful EMI merger the only way for Len Blavatnik to avoid ending up as the next Guy Hands?… Meanwhile, as first reported by The Wrap, Universal Music is preparing to install Universal Music Publishing Group executive Ethiopia Habtemariam as head of Motown, as the label transitions into the Island Def Jam Group. At least one veteran IDJ A&R executive is said to be heading back to Universal in the new Motown/IDJ group after previously departing under CEO L.A. Reid, who is now chairman of Epic Records.
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Industry Round Up: More UMG and Sony Changes Emerge, Bands in the Mix & more…
L.A. Reid to take reins at Epic
With much of the industry attention recently on the new ownership of Warner Music Group and the upcoming auction of EMI by Citigroup, the other two major label groups are back in focus in coming weeks with what will be a series of changes coming to fruition under the new leadership at Universal Music Group and Sony Music. The move for L.A. Reid to Sony that was highly rumored after his departure from Island Def Jam, is becoming all but official with multiple reports that he will run a restructured Epic label group that will now include Jive. The move will also see Reid once again working under Doug Morris, who comes in as new Sony boss on July 1st. Observers are wondering who else will take up new roles under Morris, including who will oversee RCA, after former label boss Barry Weiss took Reid’s place atop the IDJ and Motown/Republic labels earlier this year. Did someone say musical chairs? Expect more new executive announcements at both Sony and UMG over the coming weeks including returning A&R veterans, along with additional new labels being launched under each umbrella… Already signed to the new Epic Records is YouTube “sensation” Karmin, who have racked up millions of views for their cover song videos… Elsewhere, another girl-guy duo garnering industry attention is San Diego act Little Hurricane, whose live shows and recent support from 91X have both labels and managers in pursuit… Others names on lips and in the mix include Childish Gambino, Band of Skulls, Pains of Being Pure at Heart, Electric Guest and Capitol Cities… Meanwhile, Ben Lee and Butch Walker join the Dangerbird Records roster and Barsuk Records has signed New York City’s Yellow Ostrich.
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Bits & Pieces: More Executive Musical Chairs, EMI Shopping Begins, Warner Music Interest Expands & more…
Big four in limbo; all looking for x-factors
While a lot of the industry was immersed in debauchery on Austin’s 6th street last week, the following news broke; Island Def Jam head, Antonio LA Reid, announced his departure from Universal Music Group to take a judge spot on Simon Cowell’s X-Factor, it’s widely believed that Reid will end up back at Sony Music under former UMG boss Doug Morris (Cowell’s X-Factor also has a deal with Sony)… The following day it was announced by UMG chief Lucian Grainge that newly acquired East Coast exec Barry Weiss would be taking over the reins left by Reid, as new CEO of IDJ and Universal Motown Republic Group… After recently being sold to BMG Rights Management, it was reported that Chrysalis Music founder Chris Wright is in the process of buying back the company’s distribution company Lasgo Chrysalis, a division that has seen a rise in business due in part to the resurgence of vinyl… The NY Post claimed sources who have indicated that Citigroup has begun quietly shopping EMI, and many of the interested parties are also currently bidding on the whole or parts of Warner Music Group… The short-list of suitors for WMG stays much the same, though who is bidding on what pieces seems to be shifting; KKR-backed BMG who originally submitted a low-ball offer for Warner/Chappell is said to now be considering a bid for all of WMG, while reports today claim that there are three specific WMG assets that the joint-venture is interested in. Meanwhile one new bidder has emerged in private-equity and investment firm Tamares, who is also interested in the entire company… Elsewhere, a new report has predicted that within five years, there will be over 161 million subscribers to digital music services… MOG is trying to put together a new investment fund in the range of $25 to $30 million… And Clear Channel is said to be taking a serious look at recently bankrupted music service Playlist.com…
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Wednesday Bits & Pieces: Tip of the UMG Change-Over, Yahoo Music Head Departs, MTV Funding Videos & More
Changes afoot @ UMG
The departure of longtime Universal Music Group vice chairman and CFO Nick Henny was announced this week, the first high-level executive to exit under new UMG ruler Lucian Grainge. Seen as only the tip of what will be a massive restructuring at the largest of the four major music groups, chatter continues about the fate of executives and the labels themselves including Island Def Jam, Mercury and both Motown and Republic labels. Stay tuned… After a relationship lasting almost four decades, Queen has officially parted ways with EMI, signing with UMG in a deal that will see the release of remastered albums next year… In more exits, Yahoo Music chief Jeff Bronikowski is reportedly leaving to join AOL Music - AOL has also been named among those recently interested in acquiring Yahoo, other names on the list include BMG Rights Management backer KKR… Though no longer “Music Television” in name, MTV has announced the launch of a new series of videos called Supervideos, that will see the company funding the videos themselves – a move spawned by the return of music video popularity online, and possibly the rise of a new rival in Vevo. The first video project is for the LCD Soundsystem song “Pow Pow”… Elsewhere, Warner Music is launching an archival project dubbed Sight of Sound, which will focus on the integral role that visuals played in the pre-Internet age, and to document the rich history of the label… And after two years of running as an ad-funded streaming service, the UK company We7 is refocusing as an online radio service similar to Last.fm and Pandora.
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Friday Round Up: Sony Music Top Spot, Face Off Over EMI, CMJ & More…
Bandier Enters the Sony Music Fray (L) Hands Set for Face Off (R)
A story in the New York Post this morning threw Sony/ATV CEO Marty Bandier into the mix of names swirling in the bid for the top spot at Sony Music, indicating his neutral position in the ongoing “civil war” within the company as a plus. Citing unnamed executives, the piece also speculated that current RCA chief Barry Weiss might land at Universal Music Group if he isn’t named as successor to current Sony Music CEO Rolf Schmidt-Holtz - a scenario being floated by more than a few folks in-the-know… Meanwhile the buzz around the courtroom showdown between Terra Firma and Citigroup over EMI continues as the WSJ reports today that talks between the two sides failed this week, though there is still time for a settlement to be reached over the weekend. Informal talks could continue even after the trial’s start on Monday if an 11th-hour pact isn’t reached – Guy Hands is expected to take the stand first… No stranger to firing rumors, gossip that Island Def Jam ruler L.A. Reid is as good as out continued this week. While a move to television in the form of an American Idol or X-Factor judge position was previously floated, insiders share that a quiet departure with a label-imprint in hand seems a more likely scenario… In other updates, Steve Aoki has entered into a world-wide co-publishing deal with Warner/Chappell Music, the A-Team’s own B.A. Baracus (aka Marc Wilson) signed the producer/writer/DJ who has upcoming projects in the works with Rivers Cuomo, Chiddy Bang, Travis Barker, Will.I.Am and Sky Ferreira… The CMJ Music Marathon 2010 kicks off next week in New York City, including a keynote address from Jason Flom – other panelists slated to speak include David Boxenbaum (A&M Octone), John Boyle (Hello Music), Lindsey Cook (RCA), Eric German (MS&K), Jon Pikus (Lava/Kirkwood Ranch) and many others… The label action continues to wind up around Seattle’s The Head and The Heart after whipping A&R folks into a frenzy with their L.A. shows last week. Zeitgeist’s Jordan Kurland has picked up the band for management… IAMMEDIC continues to generate label interest, taking multiple meetings after their EP-release show last week. A collaboration with Far East Movement is set to take place on the heels of their remix of the band’s “Like A G6″ – the top song on BigChampagne’s Ultimate Chart this week… Catch Las Vegas act And She Whispered at the House of Blues Hollywood this Saturday (Oct. 16), as they open for All That Remains on their current North America tour. The band has received airplay on LV’s Extreme Radio and has been drawing big crowds in their hometown… IN THE MIX: Amanda Ghost, Fearless Records, Chappo, OFWGKTA and Box.net
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Thursday Bits & Pieces: L.A. Reid, BMG Eyes Top Publishers, More CMJ Acts & More…
Tongues are wagging about the fate of L.A. Reid’s future as Chairman of Island Def Jam, with lots of information and misinformation swirling, and a cast of players including Lucian Grainge, Simon Cowell and The Dream, most believe Reid himself is the x-factor here… BMG Rights Management continues their publishing offensive in the U.S. with the acquisition of Evergreen Copyrights, after the announcement of which this week, CEO Hartwig Masuch made known his plan to rival the four major music publishers for dominance, adding in reference to the unsure fate of EMI, his company wouldn’t necessarily need EMI’s entire publishing business, but would be happy with Western European assets… CMJ has announced the 2nd batch of acts confirmed for this year’s Music Marathon in New York City, including currently chased indie groups like BRAHMS, Oberhofer and Cults, the latter of which looks to have been taken off the market as quickly as they appeared… Back on the left coast, catch Fool’s Gold at the Troubadour tonight, as the local band returns for a hometown show after a string of European dates. And it looks like fellow IAMSOUND Records act MEN, who were featured on the cover of last week’s LA Weekly, will see their release in the UK via Columbia, who also appears to have grabbed the London-based NME About to Break group, The Vaccines…
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The Brits Are Taking Over
With today’s announcement from Vivendi on the appointment of Lucian Grainge as Chief Executive Officer of Universal Music Group, expect the rumor mill to pump up the volume on what changes we can expect to happen within the UMG labels in the coming months. But before we delve into conjecture on the UMG side, it’s significant to point out the number of British executives running US major labels. Outside of Warner Music Group, the remaining three major label groups are run by Brits. The UK presence is quite prominent at the Rob Stringer-run Sony Music, particularly with the addition of Amanda Ghost at Epic, the recent addition of Ashley Newton at the Steve Barnett-helmed Columbia Records. And the Terra Firma-owned EMI Music Group maintains its US operations under Nick Gatfield, who served under Grainge during his stint as President of Island Records UK prior to his EMI post. Aside from Ghost, the aforementioned execs have solid working experience in US music companies. Barnett has been in the Sony US system for years, Newton’s previous post at RCA and his tenure co-running Virgin Records US makes him a very well-respected US exec, while Gatfield ran Polydor Records in the states during the ‘90s.
Back to UMG, Grainge will assume his new post on Jan. 1, 2011, succeeding current UMG CEO Doug Morris. Rumors of Grainge assuming Morris’ position have been swirling for months. Grainge is scheduled to relocate to NY in July as part of the transition. Industry insiders share that Universal Republic head Monte Lipman and brother Avery will have an expanded role at the music group, as well as Mercury Records head David Massey. It leaves to question the future roles of Island Def Jam ruler LA Reid and Universal Motown head Sylvia Rhone, who was a longtime Doug Morris protégé. And it’s fair to expect no major changes to happen at Jimmy Iovine’s Interscope label. Stay tuned…
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