Warner’s Shuffle

Warner just shuffled a number of executive positions in an attempt to “seize new growth opportunities.” I won’t go in to all the detail, but I think there are a few interesting points I would like to hit on.

First of all, Warner’s CEO Edgar Bronfman made the following statement:

“It (the new structure) builds on elements of the company’s strategy – including significant investment in A&R, leadership in the industry’s digital transformation, and development and acquisition of a suite of artist service companies – that have helped deliver a high level of creative and operational success.”

That all sounds about right. Warner wants to diversify to cover more of an artist’s income streams. To be a one stop shop as revenue moves from cd sales and into different, non-traditional areas. And a solid investment in A&R (artist and repertoire)
has been lacking as labels seem to be searching for artists already big instead of taking the time to develop the artists.

Another thing that struck me as odd is that an executive named Lyor Cohen will oversee recorded music operations for the U.K. and Latin America. Did I miss something here? When did the U.K. and Latin America have similarities in music to where they could be run out of the same office? The U.K. has 60 million people. Latin America has 562 million people who differ greatly in musical tastes between countries. I think there needs to be an executive at that level actually stationed in Latin America with key connection points in each country. Cohen will work out of the New York office.

Stay tuned,
Erik
erikrostad.com