|
|
Arista Chief Looks To Reverse Slide
submitted by: Lisa D.
source: New York Daily News
Date: July 11, 2001
BY PHYLLIS FURMAN
Arista's new chief Antonio (L.A.) Reid has had an off-key debut year and it looks like the numbers are going to show it.
Industry sources estimate the prominent label posted a loss of as much as $45 million compared to a profit of $50 million in the previous year as the label scaled back its release schedule and signed up new artists.
But now, Reid's hoping the likes of P. Diddy - whose latest album hit stores yesterday - as well as Usher, Baby Face and TLC will spark a resurgence for the BMG-owned record label.
Reid walked into one of the most scrutinized jobs in the music industry exactly one year ago, when he took over the helm at Arista from legendary music man Clive Davis.
Not only did he have to prove himself to be the right successor to Arista founder Davis, Reid was forced to rebuild a company whose artist roster and executive ranks were raided by Davis when he left the company.
It hasn't been easy so far.
Beyond its past losses, Arista's expenses are about to balloon further. The label is finalizing a new contract with pop diva Whitney Houston that will cost Arista more than $50 million, industry insiders said.
Meanwhile, Reid's predecessor, Davis, is on a hot streak at his new company, J Records, also owned by BMG.
J Records boasts the country's No. 1 album from singer Alicia Keys - a Davis find who ditched Arista when Reid took over. While startup J Records continues to lose money, its early chart success marks a vindication for Davis, who was forced out of Arista by BMG's top brass in favor of Reid.
Reid acknowledged that he's just completed "a transition year." But he predicted the tide is about to change with a slate of promising albums, starting with yesterday's release of Sean Combs' "P.Diddy and the Bad Boy Family...The Saga Continues" from Arista's joint venture label Bad Boy Entertainment.
Arista insiders said they expect the album to hit at least the top five on the pop charts next week. But music insiders said the album - which was not released to music critics in advance - might be hurt by the barrage of negative headlines that hit Combs before his recent acquittal on gun possession and bribery charges.
Even so, Reid is still banking on big releases from artists like Usher and Baby Face, both of whom now have hot singles.
"In the coming year Arista will have some big records," said Marc Pollack, of music industry Web site Hitsdailydouble.com, who gives Reid credit for signing artists like hard rock band Adema.
"We have the No.1, 2, and 3 singles in the country," Reid said. "I'm extremely optimistic that we'll have huge success with our upcoming releases."
Site design by: Dolphin Webpage Designs © 1996-2001