Epic Fail

Flush with cash

Flush with cash

It looks as though it may be a very long spring for reality TV star and part-time Epic Records Chairman L.A. Reid. News from one of my little birdies ensconced at 550 Madison Ave. says that the numbers for Epic’s fiscal year ending March 31 won’t add up in L.A.’s favor. The label is reportedly on track to lose well north of $35 million. Whew!

“Where did it all go?”, you may ask. Well, for one thing, the Michael Jackson catalog and several other important catalogs were moved over to the Sony Legacy label, Sony Music’s separate catalog division, thus denying Epic the built-in billing that most major labels desperately need to make their numbers. Now the label is dependent upon signing and breaking new artists and I guess that it’s not that easy these days–or so I hear.

Then, of course, you have the less than parsimonious Chairman Reid. Hardwood floors, stretch limos, and private jets on the company dime tend to add up. A million here, a million there, and pretty soon you’re talking about real money. Coincidentally, Reid is the guest of honor at an annual Grammy Party this week hosted by another profligate Sony Music spender, Clive Davis.

Better yet, let’s see how septugenarian Sony Music CEO Doug Morris spins this.  As both Sylvia Rhone and L.A. Reid would probably say, “That’s what friends are for”.

© 2013, Wayne Rosso. All rights reserved.

5 comments for “Epic Fail

  1. Jimbobogie
    February 18, 2013 at 10:43 PM

    Record labels can no longer make money on established acts, let alone trying to develop new artists. The distribution of music is now in the hands of people with good cell phones and bad intentions.

  2. February 15, 2013 at 1:19 PM

    In order for labels to change their ways, radio stations need to change the way they obtain advertising dollars…don’t see that happening any time soon. The public is woo’d into believing who is a hot artist, and advertisers pay to attract the sheep to their products. Radio stations can’t even promote new artists in their rotations because of this. I think once that problem is fixed, we’ll start to see a change in direction. But, if that ‘were’ to ever happen, the massive underground scene would probably make it even more difficult for any one artist to make a living with their craft, so we’re right back to the drawing board where a few select artists earn the majority of air time.

  3. Gyorgy
    February 8, 2013 at 11:58 AM

    I’m very glad you’re back with some new posts– everything else is watered down pablum compared to how you write……..please don’t stop, you’re great! :-)

    • February 8, 2013 at 12:06 PM

      Thanks very much. I appreciate it. Have been bored and lazy lately but have my mojo back and some fun stuff in the works. Stay tuned

  4. February 6, 2013 at 11:37 AM

    Wouldn’t it be nice if record labels got back to signing artists that make good & unique music rather than videos that merely promote recycled crap.

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