Lyor Cohen, Chairman and CEO, U.S. Recorded Music at WMG, said, "The Independent Label Group is designed to provide entrepreneurs the resources to organically grow their business. Recognizing that each indie label has unique needs, ILG will work hand in hand with independent artists and executives, providing an individualized support system, so each label can achieve their creative or business goals. Todd is an entrepreneur, through and through, and it's hard to believe that in less than two years he and his small team have translated that entrepreneurial spirit into a variety of label partnerships that have led to amazing artist successes with Mike Jones, Paul Wall, Webbie and Bun B among others. I couldn't imagine a more appropriate executive to oversee this group of labels."

John Esposito, President and CEO of WEA Corp., said, "As we intensify our commitment to the independent music community, we wanted to develop a structure whereby the resources available to independent labels and artists could be housed under one umbrella. Todd and his stellar team, Fred and Jason, exemplify the independent spirit and share a respect and admiration for the artists and labels that make up that community."

Todd Moscowitz, President, Independent Label Group, said, "What we have built at Asylum over the last 18 months is a testament to the labels and the artists that we have partnered with. We are so proud of what we have all achieved together, and I am looking forward to working with Fred, Jason and their teams because they have the same respect that we do for independent music and the entrepreneurs who create it. It's an exciting time for all of us."

So for up-and-coming bands signing with WMG labels, what do you all expect for their futures?

Okay, for the band that just signed to a WMG label (nope, it wasn't me, but someone I know), is there any chance that their label will be so committed to a turnaround that they will promote the hell out of the band and make them famous?

Or is it more likely that their CD won't even see the light of day?

Dead Men Walking...

A walk through the vaults of WMG's greatest hits so to speak.
The news blurbs:

Statement From Warner Music Group Corp. Regarding EMI plc

Statement From Warner Music Group Corp. Regarding EMI plc
NEW YORK, NY, Jun 11, 2007 -- Warner Music Group Corp. (NYSE: WMG) confirms that it continues actively to consider an offer for EMI Group plc. Such an offer would be pre-conditional on appropriate anti-trust clearances being obtained (or the pre-conditions waived) but not subject to any other pre-condition. A further announcement will be made in due course.

Well boys....what happened?


Warner/Chappell Music Signs Worldwide Publishing Agreement With R&B Singer/Songwriter Lloyd
NEW YORK, NY, May 17, 2007

And this amounted to?


Warner/Chappell Music Signs Worldwide Publishing Agreement With LeToya

This is Earth shattering!!!


Warner Music Group Names JetBlue's Peter Scherr, Vice President of Interactive Marketing

Executive Responsible for Development of jetblue.com to Support WMG's Interactive Marketing Efforts

Who the fuck is he and what has he done lately?

Warner Music Group Hires Music and Television Veterans Ignjatovic and Prager to Lead Newly Created Original Programming Division
New "Den of Thieves" Unit Teams Veteran MTV Series Creator and Executive Producer of 2007 MTV Video Music Awards With Seasoned Music Executive

Ah the legendary Den of Thieves!! Go get 'em fellas.


Hybrid Technologies Selects Warner Music Group To Bring Environmentally-Friendly Electric Lithium Vehicles To The Music Community
Multi-Platinum Recording Artist, James Blunt, to Encourage Fans to Go Green by Driving Electric Mini Cooper

Someone should encourage James Blunt to sell some fucking records.

Acclaim Games Launches DANCE! Online Game Featuring Music and Artists From Warner Music Group

BIG !!!!!!!


Warner Music Group's Independent Label Group (ILG) Signs Minneapolis-Based Rhymesayers Entertainment

OTC to date please?


Further Statement Regarding Potential Warner Music Group Corp. Proposal to Acquire EMI Group plc
NEW YORK, NY, Feb 21, 2007

And we danced!!!


Warner Music Announces Strategic Initiatives in Middle East and North Africa

Those are huge markets. Roll out those cassettes that you no longer manufacture Eddie.


Warner Music Group and Brightcove Unveil New Video Initiative
Deal Further Expands WMG's Video Content Monetization Opportunities

Profits so far? Any seven figure checks?

Asylum Records Announces Partnership With Aphilliates Music Group

Again oh say OTC!

Give Callers the Star Treatment With Cingular's Exclusive Answer Tones™ Recorded by Warner Music Group Artists
Innovative "Say My Name" Program Allows Customers to Include Their Own Name in Answer Tones

Isn't that a Beyonce' song? Isn't she signed to Sony?
Hmmm. How about "Hello, my name is Lyor."


Alternative Distribution Alliance Names Mitchell Wolk, Executive Vice President

Andy goes fishing.

The Biz Online Reality Competition Kicks Off Revealing The Top 25 Contestants Ready To Make It Big In The Music Business

Contestant number one: Edgar Bronfman Jr.

Atlantic Records Group Chairman and CEO Jason Flom Steps Down
Craig Kallman Named Chairman and CEO

And there goes your entire ability to have rock records, I mean it's not like they're selling.
Welcome Craig-O! Bringing in the hits.

Sean "P.Diddy" Combs and Bad Boy Entertainment Form Joint Venture with Warner Music Group

OTC? ABC, 1,2,3 ..c'mon kiddies join in!

Richard Blackstone To Be Named Chairman And CEO Of Warner/Chappell Music, Inc.


This lasted a lifetime... in dog years.
His replacement...Casper the Ghost. Well might as well have been.

Linkin Park to Donate $100,000 to American Red Cross for Eastern Africa, Southeast Asia Natural Disaster Relief
Out of the millions taken from WMG!

Warner Music Singapore to Come Under Su Kong Cheah's Supervision

This man is an icon!!!

Warner Music Group Urges Voters To Make Their Voices Heard And the voices of shareholders?

Atlantic Catches Cold
Acclaimed Rockers Join Label Via Flip Deal

Should have left this as Atlantic Catches Cold

Bider To Be Honored With Prestigious Award By Songwriters Hall Of Fame

And then gets fired.

Helen Murphy To Leave Warner Music Group

Hello EMI!

I will continue..but isn't this all grand!!??

Who was stupid enough to believe Lyor could run this company?

1) The mantra of finding new distribution channels has been a farce. WMG is selling it's wares to all of the same entities as the other majors. Well, as of last week, except Nokia and Amazon.

New Distribution Channels = Failed.

2) Extending WMG's global reach was something that Edgar made tall mention of since last year's year end. WMG is the smallest major when it comes to the international world. It is a big planet Edgar. Much bigger than your table at the Four Seasons, the new townhouse, the Quebec liquor commission, the club in the Hamptons and your alimony checks.

Extending Global Reach = Failed.

3) The opportunities in mobile are endless. Well, we know that is not the case. We also know that most of the mobile music content purchases are of the hip-hop/urban variety. This is a dying genre falling off faster than all of the others. Your executive music team (outside of Whalley) has their core competencies in urban music. Thus, your executives' collective skillset is dying off as well. Actually, it is irrelevant.

Mobile Opportunities = Failed.

4) In September Edgar stated in a keynote that beyond anything in the business the most important thing is discovering new talent. Pray tell, how are you doing this? Where are you doing this? Who is doing this? An even bolder statement was "A&R is our R&D." Do you think you are DuPont now? That is where you lost over $3,000,000,000.00 of the family fortune. Your artists are dying off, being dropped, leaving or simply giving up. At the 75 Rockefeller board room listening party for Madonna's last album you referred to her as "our queen." Your queen went to another kingdom. Queen? Whore? Opportunist? Either way, she left.

A%R = Failed.

5) A couple years ago Scott Sperling jumped into the ring. He was very vocal about the finances that WMG had and that they were going to aggressively grow the business.

Liquidity = Failed.

6) Edgar's excuse for losing deals is a newfound buzz phrase called "financial discipline". So, we go from "aggressively growing" to "financial discipline." Alright then. Should the business not have been financially disciplined from the outset? How do we explain the club in the Hamptons? $110m from the Napster settlement could not help? You stole a man's laptop and you do not even use it. At least that would have brought the IT bill down.

Financial Discipline = Failed.

7) "Moving forward we are going to partner with our artists in all revenue streams." Sounds a bit like the towering inferno that was Sanctuary. You can do all of the the 360's that you want. Then, as your brain continues to spin in what is already perpetual dizziness your vomit will create the only real new stream by which you can raft. The concept of a 360 is you start at point A and end up at point A. A 180 would be more appropriate and at least put you in a different spot. The Eagles, a legacy Warner artist, partnered with Wal-Mart. Madonna partnered with Live(for now)Nation. Will T.I. partner with Smith and Wesson? Kid Rock with Marlboro? My Chemical Romance with Maybelline?

Partnering with Artists = Failed

360 Anything = Failed

8) The Top 200. WMG has a total of 4 albums that have sold platinum. 3 of which are just over the platinum limit.

The Charts = Failed

9) "We are going to move ahead of the industry dynamic." Brilliant!

Responsible Statements = Failed

10) "Our marketshare grew 1% point last year." You are a public company. In the last year the only share that you should care about is your company's share price. I am looking at a share price of $27.24 52 weeks ago to a low yesterday of $7.26.

"Sharing" = Failed

WMG = F

Meet Edgar Bronfman, Jr.: King Midas in Reverse.

Good one Bill!

"From Rags to riches to rags in 3 generations" -
What Sam Bronfman, Eddie's grandfather, was afraid of


"The Bronfmans are always great theater"
David Plotz, Slate.com

Unless you work for Eddie Jr., then it's disaster theater.


Editor's Note: Edgar Jr's Blind Faith From 2003, about the Vivendi deal:
"In retrospect, one can ask: how do you trade away a $34 billion business for stock? (The stock price was $77.35 when the merger was announced; it closed at $15.45 on Feb. 11.) What motivated Edgar Jr. to have blind faith in the Vivendi CEO, Jean-Marie Messier, who turned out to have blind ambition and not much else? What caused him to make the decision that undermined the vast wealth of a family, wealth that had been amassed over three generations?

In this issue, Canadian writer Brian Milner, a seasoned business reporter and observer of the Bronfmans, weaves a heart-wrenching tale of how Edgar Jr., with his father's blessing, put much of their family's eggs in a basket led by a man seemingly out of control."


Lyor = JM Messier in 2007?
Jr does not have a good history of picking the right people to work with.

Or is it more likely that their CD won't even see the light of day?"

WMG's private equity investors want the share price to go into free fall. They know that this is the best way for their exit to occur. Once the share price is in the $5 range Terra Firma will jump all over WMG. And, my friends, this is exactly what the powers that be at WMG want to occur. It is not a matter of if, but when at this point. The WMG brass casheds out netting a fantastic profit and Terra Firma gets a fantastic deal.

Let us not forget that some of the key people who drive innovation inside WMG. The R&D IT staff, the security staff, the email staff, are all gone.

But we're not convinced that doubling down on a major label bet is the best call at this point.

Spikerz, obviously you are or were on the inside. What can you confirm re the Finance/Account/Royalty departments and the inability to properly process statements along with missing deadlines? Your perspectives seem to come from the ground level. Unfortunately, my information comes from the top level. Without the ground you cannot have a top. We need more of your kind to speak out.

With all of the issues at WMG one would think that current or ex-WMG people would be more involved in this dialogue. All fingers have pointed at the leadership but if the troops do not care the war is over. I believe that this is the case here. A shame really as proactive troops can make a difference. Silence equals death.

18. The Savoy deal.

The only side to the royalties that I saw was that the universal/wmg project was over 3 years behind and royalties was running on hardware that's over 12 years old. So lateness of processing wouldn't surprise me. The outsource people from India were supposed to have a major hand in taking over that side from the American staff, I'd heard there were insanely long timeline pushbacks, 2 months into the project they were already 3 months behind their projections.

But hey that's what wining and dining the top technology execs in India for 10 days will get you.

The finance stuff I saw was random directors green lighting AD changes that bring down Hyperion. No clue where the CIO is on her implementation of SAP instead of Oracle financials.

I've heard "rumors" that EBj may or may not have, hired an outside security consulting company (that he may or may not sit on the board of) to perform a security audit. Said audit may or may not have been launched via a trojan opened by an exec, which sent all login info to outside company like any of the numerous trojans would. It also seems that the only execs targeted by said malicious bit of code were EBJ's direct reports and all their email/data may or may not have been compromised. It would be shocking to think that such an audit was not communicated to the proper internal employees, or that it may or may not have targeted those execs for a specific reason. Again merely a rumor.

The talent that's kept wmg together in all areas A&R/IT/marketing /etc has left or is desperately trying to leave.

The R&D staff I mentioned before was on the technology side. They saw all their ideas and carefully prepared presentations on how to correctly leverage WMG's best ideas using existing and up and coming technology, tossed out the window. Resulting in their frustration and eventual departure for greener pastures.

I do know that from a technology stand point the US ignores WMI. WMI has some of the best and smartest people I have had to absolute pleasure of meeting, and tossing back several pints with. They are the die hards, that truly want a successful company.

Whoever is smart enough to swoop on that talent for their own agency is going to get one heck of a deal.

I'm stoked for the people who jumped out of the crashing plane while they could, I just hope everyone else is able to make it out.

"What happened took people by surprise and it took me by surprise," Mr Bronfman said of the speed of the CD market's collapse

"What happened took people by surprise and it took me by surprise," Mr Bronfman said of the speed of the CD market's collapse, but he declined to address Warner's share performance.

Priceless!

No paper plates, no good pens, no private printers. Occasionally they throw a liquor intense party on sight, just to liquor up the employees one thinks, to keep them sedated.

Rkt88 -- reminds me when Reinstein sent a memo around saying if you wet felt tips pens after they run out, you can get an extra week's use of same. Paper plates?? We were dining off Limoges china.

The titles given the new pillagers are laughably vague.

Chief Program Strategist? Senior Metrics Coordinator?

Have we ever done a side by side comparison of Def Jam (post Lyor) vs. WMG (with Lyor?).

Anyone?

Everyone knows what's left here is nothing but a trainwreck. Looks to me like 360 degrees of incompetence.

In September Edgar stated in a keynote that beyond anything in the business the most important thing is discovering new talent. Pray tell, how are you doing this? Where are you doing this? Who is doing this? An even bolder statement was "A&R is our R&D."

cohen is on death watch there...and not a moment too soon.. tick, tock,.. ding, dong..whatever.

[quote=rkt88]

People have been saying this for the last two years. He has the full support of the people that he needs that support from. He is not going anywhere.

And they said it about Azzoli for at least 5 years.

And he told you to go to hell because a bad deal is better than no deal.

Well, that depends.

Say you sign to a WMG-affiliated label right now, spend a few months recording your album and lining up a tour...and suddenly, some seismic change in the upper echelons leads to your A&R rep being caught in the crossfire, so you're orphaned. The label then tells you that there's no way in hell your album will ever see the light of day, at least not through them...but if you want to get the music back, you'll have to pay 'em $100k.

Sound ridiculous? Well, the exact same thing happened to some good friends of mine who signed with East/West in the mid-'90s...only to witness the whole Mo/Lenny fiasco firsthand, after which the scenario I described above unfolded. Of the four members of the band--all supremely talented musicians--one ended up in jail and found God, one is still hooked on fuckin' meth a dozen years later, one died in a car crash...and after a dozen years of struggle, the fourth member finally latched on with a band that's done quite well in the UK of late.

So, while a free ride at the "label's" expense may sound appealing, be very careful what you wish for...especially in the case of the current WMG.

Her'es the Lefsetz quote, "As I've stated many times before, you probably suck. Oh, you're probably not terrible, but not good enough.

Sorry, but I just find that quote terribly amusing, especially considering the source....

Warner are doing an excellent job in the digital space.

I applaud again as Warner is trying to do something different. They are proactive in pushing the envelope. As critical as many of us have been we should also tip our hats to Warner and EMI who are trying to create change.