Part 12 (1/2)
Mottola's $4 million mansion and marriage to Thalia: From Eaton, New York New York, March 3, 2003, p. 42.
Mottola-Stringer relations.h.i.+p: Ibid.
”Tommy didn't 'manage up' well”: Confidential source.
”Why the f.u.c.k am I dealing with this guy?”: From Eaton, New York New York, March 3, 2003, p. 42.
”The Tommy-Donnie-Mich.e.l.le management structure”: Author interview with Jim Guerinot.
Sony Music shrinking and employee numbers: From a.n.a.lysis of Securities and Exchange Commission reports from Sony, Vivendi Universal, EMI, and Warner, 2000 to 2004, compiled by Bill Werde and Charley Rogulewski. Used with permission.
”icon of the music industry”: Press release quoted in Eaton, New York New York, March 3, 2003, p. 42. ”It was the end of an era”: Confidential source.
”We speak the same language”: Howard Stringer quoted in Smith, Ethan, ”Two Cost-Cutting TV Executives Will Run Music Monolith,” Wall Street Journal Wall Street Journal, November 7, 2003, p. B1.
AOL Time Warner-Bertelsmann merger talks: From Peers, Martin, ”Bertelsmann, AOL Continue Music-Deal Talks,” Wall Street Journal Wall Street Journal, September 18, 2003, p. B8. New York airport meeting: From Smith, Ethan, Wall Street Journal Wall Street Journal, November 7, 2003, p. B1.
30 percent combined market share: Calculations based on Nielsen SoundScan data.
”One side of the room was Clive and his people”: Author interview with Joe DiMuro.
Sony employees' skepticism of Smellie: Confidential source.
Andrew Lack's peer-to-peer ideas and ”Andy was the key mover and shaker”: Author interview with Wayne Rosso.
Publicists...watched budgets: From author interview with Lisa Markowitz, then-Epic publicity executive.
EMI plant closings: From Timmons, Heather, ”EMI to Cut Artist Roster and Close 2 CD Plants,” New York Times New York Times, April 1, 2004, p. W1. Cinram International purchase of Warner manufacturing: From ”AOL Time Warner Agrees to Sell Its DVD/CD Manufacturing and Physical Distribution Businesses to Cinram International for $1.05 Billion,” AOL Time Warner news release, July 18, 2003. Glenayre buying Universal plants and warehouses: From ”Glenayre Announces Acquisition Agreements,” Glenayre Technologies news release, May 9, 2005. Entertainment Distribution Company posts $11.4 million loss: From company earnings conference call transcript, August 7, 2007.
”Darwinian evolution took hold”: Author interview with Jim Caparro. DVD sales: From Digital Entertainment Group. Blu-ray's possible impact on Terre Haute plant: From ”Sony May Be Expanding Terre Haute Operations,” Tribune-Star Tribune-Star, Terre Haute, Indiana, January 7, 2008, verified by Jim Frische.
Label spending on videos and ”It's a very precarious and somewhat unfortunate development”: Author interview with Randy Sosin. 209 mathematics of indie promotion: From Boehlert, Salon Salon, June 25, 2002.
”Costs start becoming more of a consideration”: Author interview with Jeff McClusky. Clear Channel's 1,225 stations and reversal on indie promotion: From Boehlert, Salon Salon, June 25, 2002. ”We were too greedy”: Author interview with Bill Scull.
Eliot Spitzer's payola investigation, including Audioslave and J. Lo details and Epic email detail: From Knopper, Steve, ”Payola Probe Rocks Biz,” Rolling Stone Rolling Stone, August 25, 2005, p. 12.
”condoned or partic.i.p.ated in pay-to-play” and details about Don Ienner and Charlie Walk in Los Angeles Times Los Angeles Times investigation: From Duhigg, Charles, ”Hitmakers Implicated in 'Pay for Play' Plans; Investigators Looking into the Corruption Charges Found Evidence Against Two Sony BMG Senior Executives, Sources Say,” investigation: From Duhigg, Charles, ”Hitmakers Implicated in 'Pay for Play' Plans; Investigators Looking into the Corruption Charges Found Evidence Against Two Sony BMG Senior Executives, Sources Say,” Los Angeles Times Los Angeles Times, December 4, 2005, p. A1.
Ashley Alexandra Dupre receiving more than $206,000 via Mys.p.a.ce song downloads: From Lemire, Jonathan, ”Hooker's an Online Hit-to the Tune of $200G,” New York Daily News New York Daily News, March 15, 2008.
Radio & Records 2006 ”adds” data: Courtesy of the magazine and John f.a.got. ”Songs aren't just getting on the radio as quickly as they did before”: Author interview with Doug Podell, 2006. ”The labels are scrambling”: Confidential source, 2006. 2006 ”adds” data: Courtesy of the magazine and John f.a.got. ”Songs aren't just getting on the radio as quickly as they did before”: Author interview with Doug Podell, 2006. ”The labels are scrambling”: Confidential source, 2006.
Tower Records bankruptcy background and ”We happened to be funny-looking”: From Knopper, Steve, ”Tower Records Shuts Its Doors,” Rolling Stone Rolling Stone, November 2, 2006, p. 16.
”I lost a lot of money in Argentina and Mexico”: Author interview with Russ Solomon, 2006. ”Russ Solomon didn't believe in digital music”: Author interview with Lisa Amore.
Wal-Mart cutting shelf s.p.a.ce by 20 percent, and label sources predicting another 20 percent in 2008: From Knopper, Steve, ”Wal-Mart Demands CD-Price Cut,” Rolling Stone Rolling Stone, April 3, 2008, p. 16.
”the worst business...in the most challenged sector”: EMI internal email from Guy Hands, provided by confidential source. ”Bloodbath”: Confidential source.
Bronfman, Messier, and Seagram: From Smith, Ethan, and Martin Peers, ”Cost Cutting Is an Uphill Fight at Warner Music,” Wall Street Journal Wall Street Journal, May 24, 2004, p. B1. $42 billion sale price: From ”Music Tyc.o.o.n Continues to Deal in Entertainment Industry,” Sunday Business Sunday Business, London, circulated on Knight Ridder Tribune Business News wire service, November 30, 2003. Family fortune dropping from $6.5 billion to $3 billion: From Adler, Stephen J., ”Facing the Digital Music,” Business Week Business Week, May 22, 2006, p. 64. ”I remember my mother saying as I was a kid”: Author interview with Edgar Bronfman Jr.
”Technology allows more people to get more music”: Author interview with Edgar Bronfman Jr.
Warner Music laid off 400 employees: From Christman, Ed, ”Taking Stock,” Billboard Billboard, May 19, 2007, p. 11. Leigh l.u.s.t background: Confidential source. ”This industry is like George W. Bush”: Author interview with Steve Gottlieb. Lyor Cohen and Edgar Bronfman Jr. salaries: From Warner Music Group Corp. Schedule 14A filing with Securities and Exchange Commission, January 25, 2008.
Jimmy Iovine background and ”if you bring somebody tea one hundred times”: From Trachtenberg, Jeffrey A., ”Jimmy Iovine Spins More Gold at Interscope,” Wall Street Journal Wall Street Journal, February 22, 1996, p. B1. ”You don't want to make house music house music”: Confidential source.
Ted Field and $15 million: From Roberts, Johnnie L., ”Field Marshal: The Man Behind Gangsta Rap Is Mild-Mannered, Old-Money, and Into Politics. Is Interscope Records' Ted Field a Menace to Society?” Newsweek Newsweek, February 10, 1997, p. 44. Marion ”Suge” Knight and Death Row Records background, including Knight's affiliation with the Bloods: From Boucher, Geoff, ”Suge's Next Act? The Rap Mogul's Empire Has Dwindled, but He Sees Only Possibilities,” Los Angeles Times Los Angeles Times, December 4, 2002, p. E1.
”He did a deal with the devil”: Confidential source.
”Many people say these [record] companies are a bunch of ugly ducklings”: Author interview with Doug Morris, 2005.
Revenue estimates from TV, movie, and video game licenses: From Goodman, Fred, ”Rock's New Economy: Making Money When CDs Don't Sell,” Rolling Stone Rolling Stone, May 29, 2008, pp. 2224. Guitar Hero Guitar Hero and and Rock Band Rock Band sales: From Halperin, s.h.i.+rley, ”Rock Game Nation,” sales: From Halperin, s.h.i.+rley, ”Rock Game Nation,” Entertainment Weekly Entertainment Weekly, September 5, 2008, pp. 3840.
Worldwide ringtone revenues: From Juniper Research. Will.i.am hiring engineers: From author interview with will.i.am, 2006.
Jay-Z's $10 million salary as president of Def Jam: From Leeds, Jeff, ”Jay-Z to Quit His Day Job as President of Def Jam,” New York Times New York Times, December 25, 2007, p. C3.
”Going into a major record label”: Author interview with Jamie Kitman. Labels' 5,000 layoffs: From Eliscu, Jenny, ”Labels' Unhappy Holiday,” Rolling Stone Rolling Stone, January 24, 2008, pp. 910.
Details on Simon Baeycrtz, Robert Wieger, and Barry Feldman: From Knopper, Steve, ”Rock & Roll Refugees,” rollingstone.com, July 22, 2008.
Debbie Southwood-Smith background and quotes: Author interview with Southwood-Smith.
Big Music's Big Mistakes, Part 8: Sony BMG's Rootkit ”software that tricks an operating system”: From Roush, Wade, ”Inside the Spyware Scandal: When Sony BMG Hid a 'Rootkit' on Their CDs, They Spied on You and Let Hackers into Your Computer. What Were They Thinking?” Technology Review Technology Review, May 2006, pp. 4857. Sony BMG released 4.7 million CDs containing rootkits, and 52 t.i.tles: From Smith, Ethan, ”Sony BMG Pulls Millions of CDs Amid Antipiracy-Software Flap; Recall Could Dent Sales of Artists and Retailers During Key Holiday Season,” Wall Street Journal Wall Street Journal, November 17, 2005, p. D5.
”My sister and I will no longer buy any Sony products”: Quoted in Zeller, Tom Jr., Railing at Sony BMG, Disguised as a Review,” New York Times New York Times, November 21, 2005, p. C3. ”Most people, I think, don't even know what a rootkit is”: Thomas Hesse on National Public Radio broadcast, quoted in Mitch.e.l.l, Dan, ”The Rootkit of All Evil,” New York Times New York Times, November 19, 2005, p. C5.
”It was the highest debut of Neil's career”: Rick Rubin quoted in Hirschberg, Lynn, ”The Music Man,” New York Times Magazine New York Times Magazine, September 2, 2007, pp. 2650.
”It seemed to us that the record was just tainted”: Author interview with Ethan Iverson.
”If you shed a tear for every dollar spent”: Author interview with Talal Shamoon.
”That's why the technology was used” and ”something deep”: Confidential source.
Security experts quoted in Technology Review Technology Review: From Roush, Technology Review Technology Review, May 2006, pp. 4857.
SunnComm recollections and ”It took our revenue stream right out from under us”: Author interview with Bill Whitmore.
Blaming Thomas Hesse and Michael Smellie: Confidential source. ”When we found out the Neil Diamond record had rootkit technology”: Author interview with Steve Greenberg.
Recall costing $2 million to $4 million: From Smith, Wall Street Journal Wall Street Journal, November 17, 2005, p. D5. Fifteen cla.s.s-action suits, $50 million settlement: Estimate in Smith, Ethan, ”Sony BMG Agrees to Settle 15 Suits Over CD Software,” Wall Street Journal Wall Street Journal, December 30, 2005, p. A14. ”They don't do it anymore”: Author interview with Steve Greenberg.
Chapter 7 The Future: How Can the Record Labels Return to the Boom Times? Hint: Not by Stonewalling New High-tech Models and Locking Up the Content Eric Nicoli background: From Martinson, Jane, ”Eric Nicoli: Music Boss Who Went from Choc to Rock,” The Guardian The Guardian, January 27, 2006, p. 31.