A Compendium Of Comments On The Turmoil At Sony BMG
"The exit of the pair from Sony Music today may have stunned the record business, but insiders say it was the result of the ‘perfect storm," a confluence of three major factors,"according to HITS.
In summary HITS wrote that the trio of factors were: 1) poor sales with just 2 records in the top 50 year to date dankings. 2) ongoing exectuive turmoil at the company 3) an attempt to bring in a trusted confidant (his brother) to more quickly integrate the clashing corporate cultures.
"We are witnessing the last thrashings of the dying dinosaurs. The model we created in the 60’s doesn’t work anymore. In this global new technology, a new method of finding, exposing, promoting, breaking and selling music has to emerge. – comment on The Velvet Rope"
"This company is undergoing a much-needed radical restructuring," said one Sony BMG senior executive who requested anonymity for fear of angering superiors. "There was a new perspective on this company’s direction, and a new team was needed to execute that vision."
"BMG is running things right now," said Bob Lefsetz, publisher of a widely read music newsletter. "Their guy is in the chief executive’s chair and they have all the hits. So they are ushering out the people they don’t like." – LA Times
Some industry observers believed that the senior Sony Music execs’ jobs went on the line after Lack, now chairman of Sony BMG, exchanged jobs with Schmidt-Holtz in February. "It was in the works for a while," one source said. – The Hollywood Reporter
These articles look vaguely familiar…
Of course, people would have been shocked by all this if Sony had a few more hits this year before the Dixie Chicks hit #1 this week. But the pendulum can swing quickly, and Sony may have come back roaring.
It wasn’t long ago that people thought Atlantic was going to implode. It was going nowhere, they said. Then James Blunt, TI, Sean Paul and Gnarls Barkley settled down the gossip mongers.
Sony BMG is over. Now that BMG people has taken over Sony music. The gulf between the tech/consumr electronic and the content becomes even greater. The two sides don’t understand each other and talk right through.
They might as well split now, so Sony can focus on winning the “game/console” market and let the music executive sink on their own instead of bringing the entire company down as well.