Lucian Grainge: Meet The New Boss (Universal Music Worldwide)

via Time Magazine

New York will have to get used to (Lucian) Grainge this summer when the 49-year-old takes over as head of Universal Music worldwide, the largest record company on the planet with a market share of nearly 29% and such acts in its stable as U2, Lady Gaga, Eminem and Amy Winehouse. Grainge has been groomed for the role for several years and says his fingers will remain close to the light switch. "It will depend if they have any hits or not," he tells TIME.

Paul McGuinness, the manager of U2, probably Universal's biggest single act, has worked with Grainge for decades. "Making it in the United States is the biggest challenge of all for any British talent in the music business. He will need all his intelligence and skill to pull it off," he says. At a time when many major acts are breaking away from Universal, U2 has stayed loyal to the label, in part because Grainge has earned the respect of the band. "Lucian's advantage is that he has got a strong musical record of his own, so his opinion on a song, as well as business, is taken seriously," McGuinness says.

In 1986, Grainge joined Polygram's songwriting division and gradually moved up the ranks at the company, which would later become Universal following a merger with MCA. Eventually, under the tutelage of Doug Morris, the Universal chief executive he'll be replacing, Grainge rose to run the company's U.K. headquarters and then its international operations. As EMI has faltered in recent years, he has become a key force behind helping British acts break into the U.S. market, most notably, the troubled (Amy) Winehouse.

Grainge's plans for his new position remain somewhat of a mystery. His approach emphasizes artist relations at a time when other companies would rather talk about formulating an effective digital-distribution strategy to combat music piracy. It's not that Grainge doesn't care about this issue — indeed, he wants the U.S. to become tougher on piracy. He says, however, that there is "no platinum-tipped magic bullet" to solve the problem. One thing that will help: forming a coalition of music, film and publishing companies to lobby both Congress and Internet service providers to enact tougher sanctions against music pirates. "English-speaking content has most to lose [from file-sharing]," he says.

Read the full article here:
Time Magazine - Will Universal Music's New Boss Keep the Hits Coming?

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.