L.A. Reid Soon To Be Under Universal Music Group New CEO's Watchful Eye

via New York Post

Now that Lucian Grainge has officially been promoted to CEO of Universal Music Group, Island Def Jam leader Antonio L.A. Reid is going to be under increasing pressure to score some hits and rein in his "me-first" attitude.

As expected, Vivendi confirmed yesterday that Grainge will take over for Doug Morris at the industry's largest label, effective Jan. 1. The transition begins in earnest when Grainge moves from London in July for a six-month co-CEO setup with Morris.

While Reid has enjoyed a level of security and autonomy under Morris' leadership, more than a half-dozen sources inside or close to UMG told The Post that Grainge wants to see more hits, better allocation of capital to artists, and less self-promotion from Reid.

"All of the divisions are going to be put under a microscope when Grainge arrives in New York," said one UMG insider. "L.A. likes to flaunt himself -- and since he's not doing that great lately, he's going to get looked at especially hard."

Reid is in the middle of a cold streak, with a number of releases not living up to expectations, most notably the latest albums from Rihanna and Mariah Carey.

Rihanna's "Rated R" has sold just 2.5 million albums worldwide while her last album, "Good Girl Gone Bad," sold 2.6 million in the US alone, according to Nielsen SoundScan.

Another UMG source noted that Reid spent millions on an ill-fated attempt to transform Nashville singer Jessie James into a pop star.

Reid also has had the embarrassment of watching Jay-Z score one of the biggest hits of his career with "Blueprint 3," after leaving Island Def Jam, and having his internal counterpart, Jimmy Iovine of Interscope Records, develop Lady Gaga into one of music's brightest new stars after she languished for years under Reid.

Reid supporters dismiss the idea that he's gone cold, noting that Ludacris currently has the country's No. 1 single, while legacy act Bon Jovi and new act Justin Bieber have sold more than 3 million albums combined.

"L.A. Reid has continued to break acts and have great success with our established artists," said a rep for Island Def Jam.

Beyond his roster's performance, sources said Reid's "executive as star" mentality doesn't sit well with Grainge.

They suggested that Grainge might seek to put stricter controls on Reid's penchant for showcasing his wealth with private parties and extracurricular activities like filming his son's sweet 16 party for MTV and shopping a reality-TV show to cable outlets.

Sources said Reid's recent publishing deal between his Hitco Publishing Co. and EMI instead of UMG hints at his declining stature.

While some say UMG's publishing arm passed because it didn't want to give Reid equity, others said it was a signal that UMG has cooled on his side projects and has lost faith in his ability to produce new hits.