NEAR TRUTHS: SURF AND TURF
SHIFTING CURRENTS: The changing of the guard at Atlantic, which finds 10K founder/head Elliot Grainge as the storied label’s new CEO, lends a vibrant, youth-oriented aspect to WMG topper Robert Kyncl’s “flattening” of the company. It’s also sent shockwaves through the biz. Atlantic’s longtime chief, Julie Greenwald—who assumed power more than two decades ago—announced in a brief company town hall that she’ll transition from label boss to consultant at the turn of WMG’s fiscal year on 10/1 and exit at the end of the calendar year, after which, she says, she’ll retire. We’re told that on first hearing of the planned changes, Greenwald called everyone, including all the board members, and spent the day talking shit. But it’s said she reached the acceptance phase in the last few days. The biz is breathing a collective sigh of relief, anticipating a possibly peaceful transfer of power.
Even so, many insiders are skeptical of Greenwald’s alleged retirement plan, believing she’ll segue instead to some kind of project with that great American Lyor Cohen. Greenwald drove home the $400m deal for Lyor’s 300 label during the Steve Cooper regime, with notably disappointing results. In any event, her talk of retirement has fueled the expectation that she will return to working with Cohen, who’s been her mentor and advocate for 25 years.
Naturally, Atlantic’s 400-strong staff is feeling some concern about the future, but it’s believed the reorientation of the company will right the ship after five years of sinking market share and cultural stasis.
Kyncl’s Q3 earnings call came just days after the announcement, and the chieftain announced a 14% jump in net income, with streaming revenue up by 5.5%.
As for Grainge, whose West Coast presence will realign the label’s creative side with the cultural heart of the business (Atlantic’s back-office operations will remain in NYC), his tenure begins with a huge pop-cultural force: Charli xcx, whose BRAT is on fire.
Max Lousada had reportedly resisted the push for changes at Atlantic that the board felt were necessary, which (along with his refusal to relocate from London) is said to have contributed to the decision not to renew his deal. Lousada is widely admired outside the company, and while it’s not expected he would take a label gig, many believe he will be able to write his own ticket. He fared exceptionally well under the WMG stock program, and if he decides to seek funding for a new venture, he could put some skin in the game—a move that’s invariably catnip to investors.
Wonderers wonder about the fate of Craig Kallman, long the A&R lead of the company, whose signings date back to the ’90s heyday of his Big Beat imprint (Lil’ Kim, Fat Joe). But the label’s failure to break new artists over the past few years has been a big factor in its lagging status among the majors. While Kallman’s role will likely be diminished in the new order, speculators suggest he may retain a Lenny Waronker-like post at the company, perhaps contributing to the making of some records. Reports say Greenwald didn’t mention Kallman during her remarks at the town hall, incidentally, and that he didn’t speak. Kallman hasn’t issued any kind of statement on the matter either, which seems weird.
COUNTRY AND WESTERN AND EASTERN: Less splashy but still keenly pertinent among the newly trumpeted WMG changes is the news that Warner Music Nashville will now be fully under the purview of Warner Records heads Aaron Bay-Schuck and Tom Corson, to whom WMN’s Ben Kline and Cris Lacy will now report. Given the L.A. label’s enormous success in country and Americana, this feels like an organic move.
