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The Clive Davis Thing
April 25, 2008
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"That's not easy to find in a corporate world, somebody who cares about music."
-- Michael Penn, musician.I really didn't want to write about the whole Clive Davis/SonyBMG executive shuffle that happened late last week, but after about 50 reader e-mails asking me what I thought about it, and why it wasn't in the newsletter last week (the news came out actually after the newsletter was put to bed), I thought I had to say something about it or keep answering all those e-mails. (Yes, I still answer EVERY reader e-mail)
Let me start off by reminding all this column states at the top 'Commentary and One Man's Opinion.' That's all it is. I don't have any "inside info" (like some in the media claim to have) because I was in the business, and I don't report news items that aren't supported by facts. This isn't a NY POST Page Six take on the whole affair, and again, I'm not privy to any industry scoops on the matter.
There's also already over 45,900 Google results for a "Clive Davis Out At SonyBMG" search as I write this, so I thought I'd throw in my two cents.
First of all, no matter how SonyBMG tries to slice it, dice it and price it (i.e., put their spin on it), the news is not going to be viewed as a wise corporate decision by almost everybody in the business, and those in the media who watch it closely. Especially since it came in a week when Clive and his team launched Leona Lewis's debut album to the #1 spot on the Billboard charts after successfully scoring #1 for her debut single, "Bleeding Love," on several charts in different formats. Clive also found and suggested "Bleeding Love" to Leona as her first single.
Yes, Leona had already scored a hugely successful #1 single for almost two months in England after winning "The X Factor" show there, and her album subsequently went to #1 there as well (for two months).
But so what? There are no guarantees in the business. In fact, Leona is the first solo British artist to have a #1 single in 20 years. Her album, "Spirit." is the first debut album by a solo British-born artist to enter the chart in the #1 position according to Billboard's Fred Bronson in his weekly 'Chartbeat' column dated 4/17/08.
So all in all, you have to give props to Clive and his team on a job well done. And SonyBMG made some small mention of that in passing as they named Clive's successor and also terminated BMG President/COO Charles Goldstruck.
Whether or not you are a Clive Davis fan is not important. The fact is that Clive Davis is (not was) a great MUSIC man. If you don't know about all the artists he's signed and helped guide to success over the years, then read his bio. His resume is far too heavy for me to start taking highlights from and listing here. Suffice it to say, the list of artists he's credited with helping is long and heavy.
I don't have any idea why SonyBMG is doing what it did. Maybe it's in the financials. If so, surely SonyBMG can't be thinking these changes might eliminate any red ink that might be appearing in those small boxes on those ghastly Excel spreadsheets that accountants crank out as fast as they can put the numbers in. I don't know who said, "An accountant is someone who knows the cost of everything and the value of nothing," but in my experience that sure rings true.
Maybe it's got nothing to do with that and it's for a whole bunch of other reasons we'll never really know about. But no one will convince me that removing a great MUSIC man who's contributed so much to the company he works for is a good move at a time when the music industry seems overrun with business affairs people and others who think that because they sit at the head of a music company they control, they know what they're doing. (Translation: Why is Clive Davis moved sideways while Edgar Bronfman still runs WMG?)
Clive once described his career in the business as this: "This was work (the music industry), but it was the awakening to what was to become a life's passion."
Passion. The reason so many MUSIC people got into the MUSIC business. The reason why so many were and still are successful.
The reason why so many others fail in the business is because they lack it.
Of course, that's just my opinion.
And Now This...
More reasons NOT to believe everything you read in celebrity entertainment or gossip columns.
From Fox News columnist Roger Friedman's column of February 28, 2008 titled "Idol Score:" " 'Randy Jackson's Music Club' is going to turn the music business around next month. Just wait and see!"
Whoa. That was a very bold statement to say the least. (Either that or Roger is good buds with Randy and wants tickets to the "Idol" finale)
I'm pretty sure Roger knows by now that Randy's album did not "turn the music business around" the next month. I'm hoping Roger knows that no album will turn the business around.
The ONLY things that will turn the business around are: a) better A&R and artist development from any and all labels wishing to achieve multi-platinum sales success on their artists. Because even in these most challenging times, artists with multiple hits on an album still sell in the millions. (e.g. Daughtry, Alicia Keys, Carrie Underwood, Nickelback, Justin Timberlake, Taylor Swift, Miley Cyrus, etc.); b) the creation of new models that will generate significant revenues and profits as the online sale of music increases year over year; c) the creation of vertically integrated companies within the music conglomerates to expand revenue potential from all avenues possible (e.g. Live Nation, etc.); d) realistic CD pricing.
In the meantime, "Randy Jackson's Music Club" is now selling for the low price of just $8.99 on amazon.com, and it's a bomb on the album charts. The first single from the CD, "Dance Like There's No Tomorrow," by his judge-mate, Paula Abdul, is also a bomb despite the expensive video for it being exposed to 25 million-plus TV viewers on "American Idol." Maybe now Roger should do a little follow-up for his readers and tell them what really happened.
I have nothing against Roger, but maybe he should shy away from predicting hits and misses in the music biz and stay with the real juicy tidbits, such as what Tom Cruise and Katie are up to ... how Scientology has affected John Travolta and Tom Cruise ... what celebs showed up at the latest film preview ... the news of Ivana Trump's wedding ... you know, the important stuff so many are just dying to read about.
This week, The Onion basically sums up what I'm saying in their parody of all celebrity gossip and entertainment columns. It's a must-read for great laughs. It's titled "Hannah Montana's Secret Identity Revealed!" in "The Outside Scoop" column and it will bring too many columnists to mind to name here as you read it. It's my pick for The Onion story of the week. Check out the link to it below in the newsletter.
And This...
The "Comes With Music" news articles below are must-reads for anyone who thinks this idea puts the labels on a good course for strategically planning on how to generate new revenues as the industry transitions into an online digital marketplace.
I'm quite sure a lot of thinking went into the whole "Comes With Music" thing, but read the two items immediately below and then make up your own mind.
There's a myriad of ways to generate significant revenues for labels. One might even ask why after all this time, the four major labels haven't created their own iTunes-type stores? Wouldn't they all keep more for themselves and their artists? What's the downside? The cost of the technology involved in setting it up? That cost would be all but forgotten a few years from now as more and more consumers buy their music online.
"Comes With Music" sounds good on paper. Whether or not it will pass the litmus test in the real world is another question we will have to wait and see answered down the road.
Comes With Music, Comes With Problems
From Ars TechnicaMySpace isn't the only company that sees unlimited access to music as the wave of the future: Handset maker Nokia is partnering with Universal Music Group (also a MySpace Music stake holder) for a new initiative called "Comes with Music," in which consumers pay an added flat fee for access to Universal's catalog of music.
The plan has been in the pipe for sometime, but what hasn't been known is how big Universal's cut would be. According to separate reports, the record label is set to take $35 per phone, "a big number" says Ars Technica, because the other labels would certainly demand a similar figure. All this adds up to a phone that could be prohibitively expensive for most consumers. Nokia has already disclosed that it won't pass on the entire added cost for consumers, but it would certainly have to raise subscription rates if other labels jumped on board.
Meanwhile, paidContent also reports that "Comes With Music" won't come with an unlimited supply of music. Instead, users will have access to a "relatively high" number of tracks for a one-year period, after which time they'll have to either buy a new phone or pay for another subscription. Music will also be protected by digital rights management software, and there will be an added charge for burning tracks to CDs. Yuk. As Ars says, kudos to Nokia for trying something different "but as things stand now, this is little more than a marketing initiative with a tenuous basis in reality."
Read more about it by clicking here.
"Comes With Music" Is Record Label Piracy
From insidemusicmedia.blogspot.com By Jerry Del CollianoWord is that "Comes With Music" will not have an endless supply of pre-paid music because after the first-year consumers will either have to pay for a new subscription or -- get this -- buy a new phone. If this isn't appealing enough -- to record executives, that is -- they will include digital rights management (DRM) that will make it impossible to burn tracks on a CD unless the consumer pays yet another extra charge.
Even teens with lots of their parent's money don't replace their phones every year. And no one that age likes to pay for any subscriptions.
Take away the ability to use and share your music at will and you have not just laid a big fat egg for this next generation but you've insulted your music buying public at the same time.
Read more about it by clicking here.
MySpace Music Interview: Chris DeWolfe
From Wired.comIn an interview with Wired, MySpace CEO/co-founder Chris DeWolfe talks up MySpace Music, claiming that the forthcoming music venture from MySpace and (almost all) the major record labels will be the music industry's answer to online piracy. Why, because DeWolfe says the new MySpace Music offers so many ways for its music industry partners (who will have equity in the joint venture) to make money. Thus far, the venture partners are Universal Music Group, Warner Music and Sony BMG. MySpace is still in negotiations about adding the last music giant, EMI Group, as well as several independent labels.
DeWolfe claims (and we don't believe him) that MySpace Music doesn't aim to be an iTunes killer. "We're not trying to compete with iTunes," he says. "Downloads are just one of five or six revenue streams." The other money sources are sales of merchandise, concert tickets, ringtones and free streaming video and audio supported by advertising. "I think (MySpace Music) is going to be the central hub where everyone goes to find music," DeWolfe says, adding that users will go to MySpace Music to discover new music, join artists' community groups, and purchase concerts tickets and other merchandise. The key, he says, is offering a seamless experience to perform all of these functions.
Read more about it by clicking here.
ATT Says Internet Will Reach Capacity By 2010
From cnet.comU.S. telecommunications giant AT&T has claimed that, without investment, the Internet's current network architecture will reach the limits of its capacity by 2010. Speaking at a Westminster eForum on Web 2.0 in London, Jim Cicconi, vice president of legislative affairs for AT&T, warned that the current systems that constitute the Internet will not be able to cope with the increasing amounts of video and user-generated content being uploaded.
"The surge in online content is at the center of the most dramatic changes affecting the Internet today," he said. "In three years' time, 20 typical households will generate more traffic than the entire Internet today."
Read more about it by clicking here.
NBC Wants Back Into Apple's iTunes Store
From macdailynews.com"NBC Universal would like to have its TV shows distributed once again through Apple's iTunes service, a top executive said Wednesday, but he called for anti-piracy measures to help protect his business' revenue," Stephen Shankland reports for CNET.
MacDailyNews Take: When will these people learn? DRM doesn't work. Pirates will always pirate, regardless of whatever anti-piracy measures are used. Just get the content available in a timely fashion, in good quality for a reasonable price and you'll make money.
Shankland continues, "'The music industry guys would have something to say about how the pricing has affected their product over the last few years,' Kliavkoff said.
MacDailyNews Take: "The music industry is not negatively affected by Apple's pricing. They are negatively affected because consumers can now choose and are no longer forced to buy bundles (albums on CD) at exorbitant prices. Tough. Don't blame Apple because technology allowed for consumer choice. Last we looked, Apple sells the music labels' product and gives them the bulk of the money. Again: DRM doesn't work. Pirates will always pirate, regardless of whatever antipiracy measures are used. Just get the content available in a timely fashion, in good quality for a reasonable price and you'll make money."
Read more about it by clicking here.
Court Rules Web Users Have Expectation Of Privacy
From mediapost.comA court ruling in New Jersey this week stating that Web users have an expectation of privacy in their Internet activity and IP addresses is being viewed as a new milestone in the effort to define what constitutes personal information.
In the case, New Jersey v. Reid, the New Jersey Supreme Court ruled that Internet service providers can't disclose a subscriber's IP address to the police without a grand jury subpoena. While the ruling dealt with a criminal matter, the opinion's broad language suggests that the court is willing to ponder privacy rights in online data in other contexts.
"We now hold that citizens have a reasonable expectation of privacy ... in the subscriber information they provide to internet service providers -- just as New Jersey citizens have a privacy interest in their bank records stored by banks and telephone billing records kept by phone companies," the court stated in its unanimous decision.
Read more about it by clicking here.
RINGO GOES 'OFF THE RECORD'
HBO will debut "Ringo Starr: Off The Record" on May 2nd at 11p, a retrospective of the drummer's life with the Beatles and his solo career. The show will take the format of a conversation between Starr and The Eurythmics' Dave Stewart. Topics the duo discuss include Starr's childhood, Beatlemania, and his life after the band broke up. Additional airings of the program will be on May 11th at 5p and May 15th at 10p.
ZIGGY '72
David Bowie will release a concert recorded in Santa Monica in 1972 on the Ziggy Stardust tour. The show is often regarded as being one of the greatest Bowie shows of all time. It has been heavily bootlegged, but is only going to be available officially for the first time now. It will be released on CD and double vinyl on June 30th.
QVC CLAY
Clay Aiken is scheduled to appear and perform on QVC next Monday to promote his new CD (and fourth studio release) "On My Way Here."
SPLITSVILLE
Kanye West and his fiancee have reportedly broken off their engagement. West and fashion designer Alexis Phifer have called it quits, according to a report posted Monday on People.com.
SPARKS OUT FOR AWHILE
Vocal problems have forced Jordin Sparks to temporarily withdraw from Alicia Keys ' tour and cancel all performances for the rest of the month, a representative for the "American Idol" champ said Monday.
YOKO SAYS "NO GO"
Yoko Ono is fighting in court to prevent a film of John Lennon smoking pot and talking about putting LSD in President Richard Nixon's tea from being shown publicly. The footage was shot in 1970, just weeks before the Beatles split up, by Ono's previous husband Anthony Cox.
VELVET INTERNET
Velvet Revolver' s Slash says the band may get their new vocalist via the Internet. He told Rolling Stone: "The band is actually talking about building a website [and] doing some auditions via that, so that's been something that's developing at this point," Slash said of the site, which should be up "in the next month or so."
CAPITOL TOWER TROUBLE?
Capitol Record execs are trying to prevent the construction of a 16-story tower next to the famous Capitol Records Tower in Hollywood, arguing it would damage the below-ground echo chambers used for high-end recordings at the landmark structure. EMI Music North America, which operates Capitol Records, has appealed the city's preliminary approval of the high-rise. Of course, the developers of the high-rise deny any damage will occur.
PRINCE TONIGHT
Before his gig at Coachella this Saturday night, Prince will appear on Friday's (tonight's) "Tonight Show With Jay Leno."
Quotes of the week
"Four words: Treasury Secretary Hannah Montana."
-- Barack Obama, in an opening sketch at the CMT Awards, where he, Hillary Clinton and John McCain each tried to persuade host Miley Cyrus to give them tickets to her concert. Sorry, Barack, government gigs don't pay as much as Miley is stashing away right now."Wow, wow, wow. . . . Can I meet you?"
-- Snoop Dogg, running into LeAnn Rimes inside PEOPLE's photo booth at the CMT Awards. Careful, Snoop, don't want those Dogg fans do find out you like country music. Might hurt your street cred."Everyone is doing their part for Earth Day. In New York City Eliot Spitzer asked two hookers if they'd carpool to his hotel."
-- Jay Leno"Paris Hilton has signed up to star in a new TV show about taking care of your pets. In the first episode, Paris shows her dog the proper way to hump someone's leg."
-- Jimmy Kimmel
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
Hanna Montana's Secret Identity ... Revealed! The Outside Scoop
Item! Have you ever noticed that you never see Miley Cyrus and Hanna Montana in the same room at the same time? (She's kind of like Superman and Peter Parker in that way.) Well, that's because the hot Disney singer and the hot teen singer are one and the same person! I hope I haven't put her father, country superstar Billy Ray Cyrus, in danger by revealing her secret identity, but it's news, and my job is to break big news.
Why do I know the name Kim Kardashian? I woke up in the middle of the night and it took me a few minutes before I realized that she was in a sex tape and is now on a reality show. But really, so what? She is just taking up the space in my brain that good, honest celebrities like Gabreille Carteris should hold. If it's that easy to get a reality show, I need to get an agent. But first, I need to get a good night's sleep.
Read the rest here and laugh: http://tinyurl.com/4k7oyo.
THE RADIO INTERVIEW on 'THE AMERICAN PERSPECTIVE' - From newsblaze.com
"Steve Meyer is on the front line of global music sales and distribution which he expects will soar to pocket-bursting levels. What's more, he shares his insight and ingenuity with us. Steve gives us both historical perspective and futuristic vision as he chats with Judy about the love of his work, trends of the business and his personal points of view about success, happiness and blending life with the lust for life. Steve joins Judy and helps us discover the thrill of having it all with a sense of balance and purpose. "
You can listen to an interview I did with Judy Piazza of 'The American Perspective' by clicking here: (It runs about 15 minutes)
http://www.thesop.org/index.php?id=10306.
The Blogs
Check out a great blog by Jerry Del Colliano, the Director Executive Programs, Clinical Professor Music Industry & Recording Arts, at the Thornton School of Music,University of Southern California, by clicking here: http://www.insidemusicmedia.blogspot.com.
Box Office
Check The Daily & Weekly Box Office (and more film info) at: www.boxofficemojo.com.
TinyURL
Check out www.tinyurl.com where you can make a smaller URL that will work for any webpage you wish to link to or reference. (As you can see, I'm using it in my news stories above!)
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