Steve Knopper - Appetite for Self-Destruction
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Disco Crashes the Record Business, Michael Jackson Saves the Day, and MTV Really Saves the Day
Jerry Shulmans Frisbee: How the Compact Disc Rebuilt the Record Business
How Big Spenders Got Rich in the Post-CD Boom
The Teen Pop Bubble: Boy Bands and Britney Make the Business Bigger Than EverBut Not for Long
A Nineteen-Year-Old Takes Down the Industrywith the Help of Tiny Music, and a Few Questionable Big Music Decisions
How Steve Jobs Built the iPod, Revived His Company, and Took Over the Music Business
Beating Up on Peer-to-Peer Services Like Kazaa and Grokster Fails to Save the Industry, Sales Plunge, and Tommy Mottola Abandons Ship
How Can the Record Labels Return to the Boom Times? Hint: Not by Stonewalling New High-tech Models and Locking Up the Content
FREE PRESS
A Division of Simon & Schuster, Inc.
1230 Avenue of the Americas
New York, NY 10020
Copyright 2009 by Steve Knopper
All rights reserved, including the right to reproduce this book or portions thereof in any form whatsoever. For information address Free Press Subsidiary Rights Department, 1230 Avenue of the Americas, New York, NY 10020
FREE PRESS and colophon are trademarks of Simon & Schuster, Inc.
Library of Congress Cataloging-in-Publication Data
Knopper, Steve.
Appetite for self-destruction: the spectacular crash of the record industry in the digital age / Steve Knopper.
p. cm.
Includes bibliographical references.
1. Music tradeHistory. 2. Sound recording industryHistory. 3. Compact disc industryHistory. I. Title.
ML3790.K57 2009
384dc22 2008038739
ISBN-13: 978-1-4165-9455-0
ISBN-10: 1-4165-9455-8
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For Melissa and Rose
A strategic inflection point is a time in the life of a business when its fundamentals are about to change. Strategic inflection points can be caused by technological change but they are more than technological changeA strategic inflection point can be deadly when unattended to. Companies that begin a decline as a result of its changes rarely recover their previous greatness. But strategic inflection points do not always lead to disaster. When the way business is being conducted changes, it creates opportunities for players who are adept at operating in the new way.
Andrew S. Grove, Only the Paranoid Survive
Look out, honey, 'cause Im using technology
Aint got time to make no apology.
Iggy Pop and James Williamson, Search and Destroy
CBS Records
Walter Yetnikoff , president, 19751987
Tommy Mottola , president, 1988
William Paley , CBS Inc., CEO, 19861995; died 2003
Laurence Tisch , CBS Inc., president, director, chairman of the board, 19881990; died 2003
Dick Asher , deputy president, 19791983
Frank Dileo , promotion director, Epic Records, 19791984; manager, Michael Jackson, 19841990
George Vradenburg , senior VP, general counsel, 19801991
Jerry Shulman , market researcher, VP of marketing, Legacy founder, general manager, 19731999
Bob Sherwood , Columbia Records president, 19881990
Sony Music Entertainment, purchased CBS Records, 1988
Walter Yetnikoff , chairman, 19871990
Michael Mickey Schulhof , chairman, 19911995
Tommy Mottola , president, 19891998; chairman and CEO, 19952003
Don Ienner , president, Columbia Records, 19892003; president, US division, 20032006; chairman, 2006
Michele Anthony , senior vice president, executive vice president, chief operating officer, 19902004; president and chief operating officer, 20042006
Al Smith , senior vice president, 19922004
Fred Ehrlich , Columbia Records, vice president, general manager, 19881994; VP, general manager, president, new technology and business development, 19942003
David W. Stebbings , technology director, also for CBS Records, mid1980s1995
Jeff Ayeroff , copresident, WORK Group, 19941998
Jordan Harris , copresident, WORK Group, 19941999
John Grady , Sony Music Nashville, president, 20022006
Phil Wiser , chief technology officer, 20012005
Mark Ghuneim , Columbia Records, VP, 19932003; senior VP of online and emerging technologies, 20032004
Sony Corp.
Akio Morita , cofounder, as Tokyo Telecommunications Engineering Corporation, 1946; died 1999
Norio Ohga , various positions, including president, chairman, CEO, 19582003; served as chairman, Sony Music Entertainment, 19901991
Michael Mickey Schulhof , joined mid-1970s; president, CEO, 19931996
Toshitada Doi , headed digital team, beginning in 1980; later executive VP
Marc Finer , director of product communications, late 1970s1988
John Briesch , VP audio marketing, 1981present
Nobuyuki Idei , CEO, 19992005; chairman, 20032005
Sir Howard Stringer , chairman and CEO, American division, 1998present; overall CEO, 2005present
Phil Wiser , chief technology officer, 20052006
Sony BMG
Rob Stringer , UK division, chairman, CEO, 20042006; president, Sony Music, 2006present
Michael Smellie , BMG, chief operating officer, 20012004; chief operating officer, 20042005
Andrew Lack , chairman and CEO, Sony Music, 20032004; chief executive officer, 20042005; nonexecutive chairman, 2005present
Rolf Schmidt-Holz , nonexecutive chairman, 20042005; chief executive officer, 2005present
Thomas Hesse , BMG, chief strategic officer, 20022004; president, global digital business, 2004present
Steve Greenberg , president, Columbia Records, 20052006
Joe DiMuro , BMG and RCA Records, senior VP, 19982004; executive VP of strategic marketing, 20042006
Warner Music/Warner Communications
Steve Ross , Warner Communications, CEO, president, chairman, 19721990; Time Warner, CEO, 19901992; died 1992
Mo Ostin , president, Reprise, then Warner Music, 19671995
Joe Smith , Warner, president, 19721975; Elektra Records, chairman, 19751983
Doug Morris , Atlantic Records, president, 19801990; cochairman and co-chief executive officer, 19901994; Warner Music, president, chairman, 19941995
Ahmet Ertegun , Atlantic Records, founder, 1947; died 2006
Jac Holzman , Elektra Records, founder, 1950; Warner Bros. Records, senior VP, chief technologist, 19731982; Warner Music, consultant, Cordless Records creator, 2005present
Elliot Goldman , Warner Communications, senior VP, 19821985
Bob Krasnow , Elektra Records, president, 19831994
Howie Klein , Reprise Records, president, 19962001
Stan Cornyn , various positions, including senior vice president and founder/CEO of new media, 19581990
Bob Merlis , publicist, senior VP of worldwide communications, early 1970s2001
Jeff Gold , executive VP, general manager, 19901998
Robert Morgado , chairman and CEO, 19851995
Michael Fuchs , chairman and CEO, 1995
Danny Goldberg , chairman, 1995; Atlantic Records, president, 19941995, senior vice president, 19921994
Roger Ames , chairman and CEO, 19992004
Paul Vidich , vice president, strategy, business development, and technology, 19872004
Kevin Gage , vice president, strategic technology and new media, 20002005
Edgar Bronfman Jr. , chairman, chief executive officer, 2004present
AOL Time Warner
Gerald Levin , Time Warner, chairman and CEO, 19932001; AOL Time Warner, CEO, 20012002
Bob Pittman , chief operating officer, 20012002
Barry Schuler , AOL, chairman and CEO, 20002003
William J. Raduchel , senior vice president and chief technology officer, 20012002
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