Warner Music has announced a significant restructure of its recorded music business, which will see Max Lousada depart, more execs reporting directly into CEO Robert Kyncl, and UK labels becoming more closely aligned with the rest of the company’s European operations. There’s also a promotion for Elliot Grainge, son of Universal Music boss Lucian Grainge, who becomes CEO of Warner’s Atlantic Music Group.
Max Lousada’s role as CEO of Warner Recorded Music, a job he’s done for eight years, is being cut as part of the rejig. He will stand down in September but continue to advise the major through to the end of next January. “Max is a true artists’ champion who created a culture that puts artistry first”, says Kyncl about the departing exec, adding, “I'm grateful that he'll be helping to ensure a smooth transition”.
Elliot Grainge allied his own company 10K Projects with Warner Music last year and took a place on the major’s leadership team in the process. In his new expanded role, which will start in September, he will oversee one of the two big label groups at Warner Music USA.
The Atlantic Music Group already encompasses Atlantic Records and 300 Elektra Entertainment, and will now also incorporate 10K Projects. The other big label group, Warner Records, will continue to be led by Tom Corson and Aaron Bay-Schuck, and will also include Warner Music Nashville moving forward.
With Grainge's promotion, the two current CEOs of the Atlantic Music Group - Julie Greenwald and Craig Kallman - will move into new roles. Greenwald will become Chairman of the label group, while Kallman will continue to provide creative and A&R expertise. Quite how responsibilities will be split between the three execs isn’t particularly clear at this point.
Either way, Grainge says, “It will be a huge honour to join such a legendary label group, partner with its iconic artists, and build on the extraordinary achievements of Julie and Craig - they’re leading a second golden age at Atlantic Records. I’m excited to work with the talented team at Atlantic Music Group to take the artists and the brand into fresh territory, and continue to nurture 10K’s artists and its unique spirit”.
Outside the US, Warner’s recorded music operations will be organised into three big regional groups from October: Europe, Middle East, Africa led by Simon Robson; Latin America led by Alejandro Duque; and Asia Pacific, the boss of which is still to be announced. Warner’s UK labels will sit within Robson’s EMEA regional division, which obviously makes sense, though the majors often treat their UK divisions differently to the rest of Europe.
The bosses of the regional divisions will all report directly into Kyncl, as will the leaders of the major’s catalogue business, ADA services division, and WMX - which includes merchandising and direct to fan. The key theme of the overhaul is very much that the company’s corporate structure will be flatter moving forward, with Kyncl having more direct control.
“We have an amazing bench of creative leaders and I’m looking forward to working more closely with them”, Kyncl says, predicting that his rejigged team will “collaborate on the company's next phase of creative excellence, commercial transformation and growing revenues. At a time when global culture moves at the speed of light, we’re doubling down on great artists and diverse music scenes, empowering our talent and team to have maximum impact”.