Could More Universal And Sony Execs Be Crossing The Street?
March 3, 2011 at 3:58 AM (PT)
With the news that UNIVERSAL MUSIC GROUP Chairman DOUG MORRIS finally being allowed to exit for the CEO position at SONY MUSIC ENTERTAINMENT (NET NEWS 3/2), comes speculation from THE NEW YORK POST that, "a new era of competition between the two largest music companies and could spark a price war for both talent and top executives."
The report claims MORRIS will receive just under $10 million a year to run things at SONY.
Could that salary affect executives at both SONY and UMG? There's speculation that MORRIS could want some of his former UMG people to follow him to 550 MADISON AVENUE.
THE POST reports MORRIS' move "raises concerns for UMG CEO LUCIAN GRAINGE, who will be under pressure to retain talent and executives while keeping costs under control. UNIVERSAL has launched a cost-cutting drive with the goal of saving $140 million this year. UNIVERSAL's 2010 pre-tax earnings fell 18.8%, even through revenue rose 2% and digital sales rose 14%" (NET NEWS 3/1).