Next Big Sound (a/o May 16th):
The rumblings on this started ahead of the July 4th holiday, as first reported by Digital Music News. And the initial chop involved least 5 'top A&R' and 'senior VP' executives at EMI Music Publishing, according to sources within the building. All of which closely followed the very high-profile exit of longtime Publishing president Big Jon Platt.
But there were more fireworks, including word of an extremely-handsome, multi-million exit negotiation by EMI Group chief executive Roger Faxon. Faxon's rumored exit package was $8 million, according to our sources, and Faxon was even chided about his golden parachute during recent Senate hearings (it's fun joking over lobster and caviar). At present, Faxon is understood to be assisting with the broader integration with Universal Music Group, in whatever capacity.
On that note, EMI press representative Dylan Jones contested that version of events related to Faxon in an email to Digital Music News. "Roger Faxon remains absolutely unchanged as CEO of EMI Group, though now based at EMI Music's offices obviously," Jones emailed. So, we'll see how that one pans out.
But all of that was just prelude to a far bigger bloodbath. Late Monday night and into Tuesday, we received word of a 'cold-blooded' and 'unexpected' layoff process at EMI Music Publishing from three separate sources, one of which was recently let go. "They laid off a ton of people today," one source flatly told Digital Music News late Monday night. "The president walked into a room full of people, and everyone honestly throught they were getting new Sony [Corp.] credit cards."
You fill out the rest.
At this point, we're trying to wrap our heads around the total headcount reduction, and more importantly, whether this is bleeding into EMI Music (non-publishing) as well. One source flatly told us 'they are getting rid of every EMI employee,' though that came from within the blurry, emotionally-charged warzone itself. Jones, the press representative, insisted that EMI Group would not be conducting any layoffs. "There are NO layoffs at EMI Group or EMI Music, nor are there any plans for them," Jones flatly stated.
Luckily, we're not the only publication getting information. Billboard has just reported 30-40 total layoffs across Los Angeles, Nashville, and New York, but limited to publishing. "That sounds low," one laid-off staffer told us, while pointing to a general "massacre" that involved lots of senior-level and recently-hired people. "The survivors [on this round] are the ones that were there in the middle, they were there the longest. A lot of senior VPs got hit in the first round, it seems like the second round was all people that got hired in the last year."
But, publishing? That's "a sideshow" according to one smug source, though not to the people getting axed. "They laid me off, cold-blooded style," one publishing staffer relayed, obviously dejected by the sudden turn of events.
At the highest levels, the exits of Platt and Faxon also appear tied to merger-related redundancies and their resulting ego skirmishes. And, let's be honest, there are only so many mega-egos that can fit into one corporate suite. At the top of the acquiring Sony Corp. publishing empire will be Marty Bandier, who is confidently wearing a sheriff badge in this town. And, according to a source on the inside, directly underneath Bandier will be Sony/ATV Music Publishing co-president Jody Gerson (overseeing the west coast) and New York-based co-president Danny Strick (overssing the east coast). "There isn't room for two presidents on the West Coast," the source flatly relayed, referring to Platt.
But Big Jon is apparently suiting up for a very big gig in August, though the source declined to spill the beans on the new employer. "Jon is starting his new gig in August, and apparently taking his assistant Buffy along with him."
Jones insisted that Platt left on his own, while confirming that a new gig was indeed in place.
dangude Tuesday, July 10, 2012
Paul, your stories today are very depressing. This story, the fallen entrepreneur and steve gordon et al story are all infused with hopeless despair.
Can you try to find a success story or a story that might suggest a path out of this depression?
Bald Headed John Tuesday, July 10, 2012
You forgot the recent Lowery story. Might as well move to Montana
applebaum Tuesday, July 10, 2012
So if it's a rainy day, you complain to the weatherman?
dangude Tuesday, July 10, 2012
I generally turn off the weatherman and won't tune in again if he tells me it's raining and I can look out the window to see that it's raining.
The point is it might be more news worthy to dig and find stories about solutions to the industry's obvious and long existing problems.
applebaum Tuesday, July 10, 2012
Okay, so then go read the Rosy Music News? I want to hear about lay-offs depressing or not
Flash flood Tuesday, July 10, 2012
Except it seems to be raining locusts.
dangude Tuesday, July 10, 2012
Just asking for one story that isn't about failures, whiners, business models that are based on thievery or ones that are legitimate but doomed to fail.
I know there will always be gawkers for roadkill but failure has been going on in the digital music business for years (decades?) is it really that interesting?
andre Tuesday, July 10, 2012
Frank Ocean's album was released today, it'll probably be well-received and mark the start of a long career filled w great music . . .
how's that?
The question is... Tuesday, July 10, 2012
What's next? After labels, that is.
paul Tuesday, July 10, 2012
Dan,
The intent isn't to get you down, certainly. And, maybe there's an element of 'shooting the messenger' here. But perhaps we're tackling some issues that are rather grim yet very realistic, and in need of repair. Granted, major label accounting (or lack thereof), paltry or non-existent payouts to artists from services like Spotify, extremely unfriendly relationships between startups, labels and VCs; and major label layoffs aren't the most uplifting and happy themes, though they are pressing issues related to this industry. And they are issues that I think everyone - artists, labels, executives, investors, etc. - should have their eyes open to.
Of course, there's other great stuff going on, that's for sure, and listening to music is one of them. But I wonder if it's better to dive into the difficult problems, than paper them over with some blue-sky or unrealistic angles just to make ourselves feel more upbeat. I'd argue that this sort of tendency is more damaging in the end.
If I just wanted to make people feel happy, I really don't think I'd be writing very good articles.
Look forward to your response.
/paul
@mattadownes Tuesday, July 10, 2012
This is an article on its own Paul. Its a transitional time in the music industry, a good time to be involved in a business from my experience.
The sky is not falling, just the people who refuse to adapt. (maybe thats part II)?
dangude Wednesday, July 11, 2012
Paul,
First, I am not shooting the messenger, someone has to do the dirty work and I congratulate you on being able to find work in this business.
Second. I am not asking for a series of positive spin on the sad state of the music business today just the occasional story about something that works. For every Amanda Palmer - Kickstarter success story (although some would argue that she was already a success) there are dozens of stories about how artists and innovative business people are getting trampled by the major labels, their deals with ISPs, their select and privileged distribution partners, outdated and unworkable copyright law etc.
IMO the digital music business over the last 20 years has not been that much different than the music business over the previous 60 years. There are a few success stories (either legitimate or thru the use of quasi legal business tactics) and a plethora of individuals, startups and business models that fail. I realize that the stories in DMN just reflect this fact
Finally, I guess what I am really saying is that I have been involved in the music business for over 20 years in a variety of different positions and am currently developing an online music production/distribution business. After reading the stories in DMN I either feel depressed, discouraged or embarassed to be involved in this sordid industry. It makes me want to toss it all and get a job at the muffin factory.
So next time you are greeted at Walmart check to see if his name is dan
paul Wednesday, July 11, 2012
You're right, it's a very difficult business right now, though certainly there are success stories that I hope we highlight. And digital or pre-digital, the odds of success have always been incredibly bad.
But there's also a lot of rhetoric that I think tells the wrong story, creates a lot of false hope and leads to all sorts of exploitative behavior. A lot of the DIY hype would fit into this category, with the major downside that lots of artists were simply blind to the real issues facing them (while thinking concepts like 1,000 true fans and self-funded tours were easy).
So the question as a journalist is to decide if you want to paint the scenery naked, or put a gloss over it. Well, perhaps we paint with colors that are too stark, though I'd almost rather err in that direction.
/paul
@mattadownes Tuesday, July 10, 2012
but the new Killers track is amazing!
something?
Grammar Tuesday, July 10, 2012
You might want to check the grammar and spelling in this article. I'm sure you're rushing to stay on top of the news, but heads up...
@skifta Tuesday, July 10, 2012
The title is a little harsh, but this article does a good job of summing up with what's been up at EMI
zogg Wednesday, July 11, 2012
Bandier , bless his soul! This is corporate America today and now the world, been that way for over 30 years. I'm older and have been around this tune for a long time and I still never understand the numbers and pay outs that go along with these's deals. On the publishing deal they will be able to recoup their investment over time, but the UNI/EMI label deal the numbers just don't add up , to much money going out and not enough coming in. Saleries ,signings ,catalog?
Sony,Universal would be much better off with moving all staff to Queens and Brooklyn except the high level exectutives and do the same in California, cut high rents and all unneeded expensives. The new crop of exectutives want to be on the street in the clubs not behind a desk.
@purplepleather Wednesday, July 11, 2012
wow. Can't say this was unexpected but it's still awful
Me Wednesday, July 11, 2012
Just wondering how many times you can use the word "flatly" to describe speech in one article...
English Teacher Wednesday, July 11, 2012
Three times. And I approve.
paul Wednesday, July 11, 2012
LOL, I just found a fourth.
I really don't use 'flatly' that much in everyday speech, I guess I was just really in the mood to use it in this article.
/paul
B Wednesday, July 11, 2012
It is tragic at the personal level when people lose their jobs. But at the same time, it's tough to feel sorry for the labels after all the recent stories about how they are directly screwing the artists. It makes me want to torrent all my music and contribute to the artists directly, cutting out the middle man.
This really does feel a lot like an opportunity, we just need the paradigm to flip.
@arisingrealm Wednesday, July 11, 2012
Übernahme führt zu Kündigungen...
@mimslife Wednesday, July 11, 2012
BURN IT DOWN.
@princelouisxvi Wednesday, July 11, 2012
that's sad to read man
R.P. Thursday, July 12, 2012
wow. classy. my comment got deleted -_-
paul Thursday, July 12, 2012
Weird, definitely not intentional, but can you re-enter?
/paul
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