2004: Nippy News Release Articles

Clive Davis Promotion Includes Control Of Arista Records
submitted by: Lisa D.
source: Business Wire, Reuters
Date: February 2, 2004

Clive Davis Named Chairman and Chief Executive Officer of BMG North America; Davis to Lead Creative Centers of BMG in U.S.

NEW YORK, Feb. 2, 2004 -- Clive Davis, Chairman and CEO, RCA Music Group, has been named Chairman and Chief Executive Officer of BMG North America by Rolf Schmidt-Holtz, Chairman and Chief Executive Officer of BMG, effective immediately. Davis will report directly to Schmidt-Holtz.

Davis will lead BMG North America, based in New York. Charles Goldstuck, currently President and COO, RCA Music Group, will now become President and COO at BMG North America, where he will oversee the consolidated business operations and will continue to report directly to Davis. The newly formed group will combine all operations of the BMG owned record labels, including Arista, J, RCA, and Jive headed by Barry Weiss. In addition, Davis will also oversee BMG Distribution, BMG Strategic Marketing, and BMG Canada. The group does not include RCA Label Group-Nashville, which is led by Chairman Joe Galante, and BMG Classics led by Chairman Nicholas Firth. This change will allow for a larger alignment of BMG's music operations in North America in which administrative operations and certain support functions at the record labels will be consolidated.

Schmidt-Holtz said "The team of Clive and Charles, and this new alignment, improves our ability to compete in today's market place and will help us address future challenges. BMG has achieved great artistic and commercial success, but the continuing difficulties in the worldwide music market requires us to be well prepared for the future. The new structure will efficiently strengthen our focus on our creative centers."

On the appointment of Davis, Schmidt-Holtz noted, "I couldn't be happier that Clive agreed to assume this greatly expanded responsibility at BMG. For over 20 years, Clive has been instrumental in helping build the foundation of BMG to its powerful position today. On a personal note, I have to say that since I assumed my role as Chairman of BMG, Clive has become not only a trusted business colleague, but also a confidante and partner."

Davis said, "I am personally thrilled for this wonderful new challenge and opportunity, and to be a partner in the BMG team that Rolf has formed in recent years. We have some of the industry's best executives, poised and ready to meet that challenge. Charles and I are both particularly delighted to be working with Barry Weiss at Jive Records, one of the industry's most accomplished executives. I believe we can reach new heights and a new level of achievement for BMG."

BMG's longstanding and successful relationship with Davis dates back to 1979 when BMG parent company Bertelsmann bought Arista Records, which he founded in 1975. Davis built Arista into an industry leader, in the process discovering Barry Manilow, Patti Smith, Whitney Houston, Sarah McLachlan and Dido, rediscovering Carlos Santana, and then inspiring and working with Aretha Franklin and Annie Lennox. Davis led Arista until 2000, when he launched the instant major J Records. In late 2002 he was named to lead the RCA Music Group, a merger of J Records and RCA Records, which has produced an array of No. 1 records from a diversity of artists such as Alicia Keys, Rod Stewart, Clay Aiken, Luther Vandross, Monica and Ruben Studdard.

Davis' many industry honors include the 2000 Trustees Grammy Award for Lifetime Achievement and induction into the Rock and Roll Hall of Fame as the only non-performer.

BMG is the global music division of Bertelsmann AG, one of the world's leading media companies. BMG owns more than 200 record labels in 41 countries including, Arista Records, J Records, Jive Records, RCA Records, RCA Label Group - Nashville, and Ariola. In addition, BMG's music publishing operations are the third largest in the world.

CONTACT: BMG
Patrick Reilly, 212-930-4961
or
Nathaniel Brown, 917-913-4394

BMG Names Clive Davis to Head N. American Operation

By Derek Caney

NEW YORK - BMG, the world's fifth largest record company, on Monday said it named Clive Davis to head its North American music operations, returning one of the most powerful executives to the upper strata of the industry.

The 70-year-old Davis, credited with signing Janis Joplin, Whitney Houston and Alicia Keys to the various labels, will assume responsibility for the company's four labels: Arista, RCA, Jive and J Records.

The promotion comes more than three years after BMG management, which is owned by Bertelsmann AG, unceremoniously asked Davis to relinquish control of Arista, the label he founded in 1975.

Davis previously ran the BMG's RCA Music Group, which consisted of RCA and J Records, a label he founded after he left Arista. BMG's combined operations boast a catalog that includes Elvis Presley, Britney Spears and Christina Aguilera.

His ascent comes as BMG prepares to merge with No. 2 record company Sony Music in one of the most tumultuous times for the music industry, as it combats flagging sales and competition from free song-sharing services like Kazaa.

Charles Goldstuck, who will be Davis' No. 2 executive at BMG North America, said a role for him and Davis after the merger has not yet been determined.

"There are significant challenges ahead," Goldstuck said. "We need to protect our traditional markets, while fostering an environment for digital music to thrive. The short-to-medium-term imperative is to restructure this business to ride through this period."

A source familiar with the matter said that job cuts would likely be a part of that equation. When BMG bought Davis' stake in J Records and combined it with RCA to form the RCA Group, the unit slashed jobs by 25 percent.

Davis' promotion also comes nearly three weeks after Antonio "L.A." Reid resigned as head of Arista. No decision has been made about a replacement, Goldstuck, 44, said.

Reid had replaced Davis as head of Arista in July 2000 after BMG management asked Davis to step aside.

After a public relations debacle ensued, BMG wound up bankrolling J Records, which was headed by Davis and scored a hit with Alicia Keys debut Songs In A Minor. In November, BMG bought Davis' 50 percent stake in the label.

Davis will report to BMG chairman Rolf Schmidt-Holtz, CEO of BMG. Goldstuck, who served as Davis' No. 2 at RCA Group, was named president and chief operating officer of BMG North America.

At Arista, Davis signed Whitney Houston, who had a string of 19 Top 10 hits, 11 of which went to No. 1 on the Billboard pop charts.

Prior to founding Arista, he was president of Columbia Records, where he signed such artists as Bruce Springsteen, Billy Joel, and Joplin during his six-year tenure.

Davis was fired from Columbia amid questions about his use of corporate funds for personal use. He had also pleaded guilty to income tax evasion in 1975. Columbia ultimately found no wrongdoing and went on to invest in Arista.