(from Billboard.biz, November 7, 2012) The Warner Music Group, one of the largest companies in the music industry, has announced an organization restructuring. This effort was started by Lyor Cohen when he headed up the companies record music operations.
Warner Music Group will realign to better serve its clients. It will be split into three divisions: frontline recorded music, music publishing and catalog development, and label and artist services. Atlantic Records, Warner Bros. Records, and Warner Nashville will make up the frontline recorded music division. Warner/Chappell, and Rhino will now be together to make up the music publishing and catalog development division. WEA, ADA, 360° Operations, and D2C will make up the label and artist services division. 360° Operations includes companies like Camus Productions, F&P Group, Get In, Newsicon, Vivo, and New Production. Those companies are either involved in touring production, promoting, booking, artists services, or event production and marketing.
The frontline labels heads will still be reporting to Warner Music Group’s CEO Steve Cooper as they have been. Warner/Chappell’s chairman and CEO will probably see the biggest gain in responsibilities as Rhino President and CEO, Kevin Gore, will now report to him. The General Manager and CFO, Matt Signore, will lead up the label and artist services division.
Warner Music Group feels that this change in the structure will result in a better collaboration of the music industry, improving the way they do business. CEO Steve Cooper emphasized in his memo on the changes that “the number of employees within each WMG company will not be impacted by the new organizational structure.”
Not only do the services offered separate the divisions, but the monetary risks associated are similar among the businesses of each division. Frontline records is the driver of the recorded music industry, but is also the high risk/high reward division. Whereas music publishing and catalog development is more of a steady revenue stream.