And The Thunder Rolls…

Posted by Pinky on Apr 15, 2010 in Blog | 2 comments

They’ll be talking about this week in Nashville for a long time.  News broke yesterday morning that Joe Galante, one of the most successful record executives in the history of the business, would be retiring from his post as CEO of Sony Records Nashville.  You’ve probably heard of some of his artists.  Alan Jackson, Brad Paisley, Carrie Underwood, Sarah Evans, Alabama, Montgomery Gentry, Brooks and Dunn, Martina McBride and Kenny Chesney, to name a few. (Seriously, there are a bunch more.)  He’s a legend and will be remembered fondly for his contribution to this industry.

But across town, a company was imploding.  A company I have done a lot of business with over the years.  Lyric Street Records, founded by Disney Music Group in 1997 and headed from its inception by Galante’s former right-hand-man, Randy Goodman, has announced that they will be closing their doors.  The label’s most notable success story is Rascal Flatts.  SheDaisy had a few hits back in the day and American Idol finalists Josh Gracin and Bucky Covington were also on the roster.  Additionally, they had a joint venture with Garth Brooks to promote Walmart-exclusive releases.

But to quote the great Bob Dylan, the times, they are a-changin’.  And indeed, they are.

A new generation of artists has risen to success over the last two years.  You almost can’t see it coming even though it’s right in front of your eyes.  Taylor Swift and Lady Antebellum have overtaken industry icons in their respective categories, and if you ask me, Jason Aldean is soon to take his place among the ‘male vocalist’ elite alongside Brad Paisley, Keith Urban and Kenny Chesney.

Meanwhile, Chesney is taking the year off after a decade of Top 10 Grossing Tours industry-wide.  I remember him opening for Tim McGraw.  How quickly time flies.

So what’s next for Nashville?

I’m no prophet, but the term “nimble” comes to mind.  Mega-labels like Sony are simply unable to sustain themselves under the weight of shrinking CD sales and a roster full of artists on older record deals that did not include their rights to touring, merch, publishing or sponsorships, as most contracts require today.  As a label, you’d love to brag about having Alan Jackson, but he isn’t the $100m man he once was for the company.  (Don’t worry, ole Al will be just fine.   Meanwhile, Big Machine, founded by Scott Borchetta and Taylor Swift’s dad, was built for the modern era.  Broken Bow, a pure independent, has managed to put Jason Aldean in the mainstream spotlight.  And who knows, maybe the recent changing of the guard at Warner will bear fruit.  Universal is working their magic once again with Easton Corbin, but they too have a top-heavy roster full of established, less-profitable acts.  It’s hard to say what this business looks like 2 years from now.  But as I’ve said before, musicians are going to keep making music and suckers like me are going to keep wanting to help them make a business out of it.  It certainly isn’t about selling CDs as it once was, and many companies will not survive the changing of the guard… obviously.  But as long as there are cheatin’ brides, fast times and barrels full of whiskey, this town is going to find a way to sing about it.  Just you wait and see.