Another sign of music sales down.. MCA records closes

**Drrtynewyork** · 06-22-2003, 02:23 PM

MCA records closed last week. Many lost their jobs while the lucky ones go to Geffen records.

[ June 22, 2003, 03:23 PM: Message edited by: DOUG GOMEZ ]

**Mr 1977** · 06-22-2003, 03:30 PM

That is sad. I remember when Geffen started, Donna Summer(The Wanderer-1980) was their first artist. Now they are bigger than MCA, Damn.

mdpm99 · 06-22-2003, 03:35 PM

d

**Mike Johnson** · 06-22-2003, 07:07 PM

[img]graemlins/scared.gif[/img]

**Andrew Osborne** · 06-22-2003, 07:40 PM

Wow! Quite a shock!

**JMJ** · 06-22-2003, 07:44 PM

I wonder who's next?? The free music you download today may cost somebody their job tomorrow.....JMJ

mdpm99 · 06-22-2003, 08:44 PM

Originally posted by JMJ:
I wonder who's next?? The free music you download today may cost somebody their job tomorrow.....JMJ

Greetings JMJ:

Hopefully one will find it in their hearts to do the right thing and support the artist(s) and buy a copy of their record (s). If they like their music than supporting them enables the artist(s) to produce even more music for us.

d

**Elbert Phillips** · 06-22-2003, 08:58 PM

The future is truly an uncertain author.

**JMJ** · 06-22-2003, 09:03 PM

Originally posted by david mancuso:
<blockquote>quote:<hr />Originally posted by JMJ:
I wonder who's next?? The free music you download today may cost somebody their job tomorrow.....JMJ

Greetings JMJ:

Hopefully one will find it in their hearts to do the right thing and support the artist(s) and buy a copy of their record (s). If they like their music than supporting them enables the artist(s) to produce even more music for us.

d [/QUOTE]Exactly.....JMJ ;)

[ June 22, 2003, 10:04 PM: Message edited by: JMJ ]

**djroc2u** · 06-22-2003, 09:08 PM

this is a truly sad state of affairs

**DJ Timmy Richardson** · 06-22-2003, 10:01 PM

But they just dropped the new Mary J Blige single.

**Drrtynewyork** · 06-23-2003, 07:24 AM

from what i hear, Geffen is taking their roster

**Drrtynewyork** · 06-23-2003, 08:14 AM

LOS ANGELES - MCA Records has laid off dozens of its employees as it begins a restructuring process that will likely lead to the demise of the 30-year-old music label, sources said Tuesday.

The label, which is owned by Universal Music Group, let go between 50 and 100 employees Monday.

Interscope Geffen A&M Records released a brief statement in response to questions about the layoffs: "We have begun a restructuring process at MCA Records. Further details about the structure and staffing of the label will be announced shortly. We are grateful for the contributions made by the employees affected by these changes."

A spokeswoman for Interscope Geffen A&M Records declined to elaborate.

But sources say MCA Records will cease to exist and its holdings and staff will become part of a revamped Geffen Records. Geffen President Jordan Shur is expected to head the restructured company, which will have its own staff, promotion and marketing operations.

The recording industry has suffered a three-year slide in sales and MCA Records parent Universal Music Group has been no exception. Revenue fell 19 percent to $1.26 billion in the first quarter of 2003.

MCA Records, which is home to such artists as Live, Mary J. Blige and B.B. King, among others, missed its financial projections last year. Jay Boberg, who was president of the label for eight years, resigned in January. At the time, UMG denied speculation that MCA would be absorbed by a larger division.

The label remains the only unit of parent Universal Music Group that still bears the Music Corporation of America name, which dates to MCA's 1924 founding as a Chicago talent agency.

MCA Records dates to at least 1973, when it emerged from the ashes of the U.S. wing of Decca Records, which was formed in 1934 in the United Kingdom.

**ruse** · 06-23-2003, 08:29 AM

It is unfortunate that all those people lost their jobs. But is the end of a major label necessarily a bad thing? Do you think we may be headed for a different system of licensing, distribution and marketing (or the lack thereof) which will ultimately benefit music fans?

**O'love** · 06-23-2003, 08:35 AM

there still is *no* proof that mp3/musicsharing/p2p/etc. is the reason that the labels are in rough weather.... IT businesses are *also* in bad weather, as are companies in all kinds of industry-sectors..... furthermore: who says it's not plain bad management of MCA? Why is Geffen able to by MCA, why don't they close down too? It could very well be that MCA invested to much money in promoting one-day-fly bubble-gum artists instead of long-term money-making artists.... we simply don't know...

and yeah, i know there is also still *no* proof that file-sharing on the internet is good for the industry ;)

Olaf

**Nege** · 06-23-2003, 08:45 AM

This was gonna happen sooner or later,
Universal canada got rid of their whole dance department a few months ago.

mdpm99 · 06-23-2003, 09:26 AM

Originally posted by ruse:
It is unfortunate that all those people lost their jobs. But is the end of a major label necessarily a bad thing? Do you think we may be headed for a different system of licensing, distribution and marketing (or the lack thereof) which will ultimately benefit music fans?

Greetings ruse:

In addition to what I said above, I would like to add that the Music Industry has to come to terms with the pricing of their product making it more affordable to the consumer.

But again even if they find a way to to prevent copying someone is going to figure (technology speaking) a way around it.

It is a difficult situation all the way around.

d

**ruse** · 06-23-2003, 10:08 AM

[/qb][/QUOTE]Greetings ruse:

In addition to what I said above, I would like to add that the Music Industry has to come to terms with the pricing of their product making it more affordable to the consumer.

But again even if they find a way to to prevent copying someone is going to figure (technology speaking) a way around it.

d [/QB][/QUOTE]

Thank you for responding to my question, Mr. Mancuso!
I agree, it is a difficult situation all the way around. But there are plenty of non-traditional ways of acquiring music (apart from file sharing). I just joined the NPG music club the other day. For $25 I can download a few new and old Prince songs every month, as well as access some video clips and pre-order new albums. This is hardly a new concept, and i'm not sure if it is financially solvent, but I'm sure it would work for many other artists.

**eric justin** · 06-23-2003, 11:37 AM

Originally posted by JMJ:
I wonder who's next?? The free music you download today may cost somebody their job tomorrow.....JMJ

This s*@# pisses me off to no end [img]graemlins/cussing.gif[/img]
The sad thing is that kids today don't see anything wrong with downloading(stealing) cause they wern't around when you had no choice but to buy music you wanted to hear. I think of this every time I see a label/shop call it quits. [img]graemlins/cussing.gif[/img]

**P-Flipp** · 06-23-2003, 11:59 AM

Originally posted by eric justin:
<blockquote>quote:<hr />Originally posted by JMJ:
I wonder who's next?? The free music you download today may cost somebody their job tomorrow.....JMJ

This s*@# pisses me off to no end [img]graemlins/cussing.gif[/img]
The sad thing is that kids today don't see anything wrong with downloading(stealing) cause they wern't around when you had no choice but to buy music you wanted to hear. I think of this every time I see a label/shop call it quits. [img]graemlins/cussing.gif[/img] [/QUOTE]People also don't know that p2p file sharing can unwittingly download infected files that can destroy the B.I.O.S or Hard Drive.Kaaza sucks , MiRC is dangerous.Buy the music or download legitimately.

**kev** · 06-23-2003, 12:08 PM

[quote]Originally posted by eric justin:

I think of this every time I see a label/shop call it quits. [img]graemlins/cussing.gif[/img]

Of all the shops/labels I've personally known to have closed their doors downloading music had very little or nothing to do with their closure. It was usually bad business decisions, bad product, and an overabundance of overstock (which I guess ties in with having bad product in the first place) that seemed to be the reason.

**rob brito** · 06-23-2003, 12:13 PM

ok, this shit needs to somehow be regulated. shit's out of control.

**eric justin** · 06-23-2003, 12:17 PM

Originally posted by kevin koga:
<blockquote>quote:<hr />Originally posted by eric justin:

I think of this every time I see a label/shop call it quits. [img]graemlins/cussing.gif[/img]

Of all the shops/labels I've personally known to have closed their doors downloading music had very little or nothing to do with their closure. It was usually bad business decisions, bad product, and an overabundance of overstock (which I guess ties in with having bad product in the first place) that seemed to be the reason.

I'm not saying that downloading has everything to do with the closing of labels/shops, but it certinly isn't helping them.

**Mr 1977** · 06-23-2003, 12:28 PM

Originally posted by DOUG GOMEZ:

Revenue fell 19 percent to $1.26 billion in the first quarter of 2003.

Talk about big business!! $1.26 Billion for a three month period. Multiply that times four. Sounds like mismanagement to me.

**Bill Blake** · 06-23-2003, 12:37 PM

Originally posted by eric justin:
<blockquote>quote:<hr />Originally posted by JMJ:
I wonder who's next?? The free music you download today may cost somebody their job tomorrow.....JMJ

This s*@# pisses me off to no end [img]graemlins/cussing.gif[/img]
The sad thing is that kids today don't see anything wrong with downloading(stealing) cause they wern't around when you had no choice but to buy music you wanted to hear. I think of this every time I see a label/shop call it quits. [img]graemlins/cussing.gif[/img] [/QUOTE]Why?
READ:

MCA Records, home of Talib Kweli, Mary J Blige, The Roots and Common, are planning to close up shop possibly leaving these acts without contracts. If they follow through with their plan, the big names might have to find a new home. Citing lackluster sales and the departure of the label's president of eight years, MCA may be calling it
quits as early as the end of this year.

According to industry insiders, the current plan is to eliminate the MCA Records brand and move the majority of the label's staff and some of the roster under the banner of fellow Universal Music Group label Geffen Records. Reportedly, the MCA brand name is no longer viable and has become "tarnished" by a history of acquisitions and mergers during the past few years.

If the plan (which is still in negotiation) is executed, it is expected that the majority of MCA's staff will be brought under Geffen Records, thus transforming Geffen into a full-service label. Geffen, best known for rock artists like Nirvana and Guns N' Roses, currently has a small roster that includes Cold and Counting Crows. It remains unclear where all of MCA's artists will wind up, though the plan indicates that some will go to Geffen, some will be cut, and the others may fall under Interscope. Geffen and MCA are also former homes to Killah Priest and The Genius, while MCA's current roster of hip-hop artists include Common, Rawkus Records and newcomers Field Mob.

MCA (Music Corporation of America) began its doomsday march in January 2003 when then president Jay Boberg called it quits after eight years at the label, citing the label's decline in sales. The company apparently was relying on Shaggy's 2002 album, "Lucky Day," to redeem them but the release has sold only about 250,000 copies in the U.S., according to Nielsen SoundScan.

The company has had a long history of mergers and acquisitions which partially account for the brand's marketplace demise. After Seagram acquired MCA Inc. in 1995, MCA Inc. was renamed Universal Studios and the MCA Music Entertainment Group was renamed Universal Music Group. In 1999, MCA Music Publishing was renamed Universal Music Publishing. MCA Records is the last company to bear the MCA name.

Former and current artists of the label have often complained of the company's lack of promotion and marketing and have publicly blamed MCA for unexpectedly low sales. Though The Roots and Common have received Grammy accolades and praise, the acts continue to fall short in radio play, video play and album sales compared to other Hip-Hop acts. Reps for these Okayplayer acts would only say that, though no one is sure of the final outcome, The Roots and Common will definitely NOT be dropped. The Roots still owe two studio records according to their contract though it's not confirmed what label they are going to be under. Inevitably, the label closing could spell big trouble for these popular Hip-Hop acts.

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