Universal Music, Label for Lady Gaga and U2, Names Grainge CEO
February 10, 2010, 06:45 AM EST
By Kristen Schweizer
Feb. 10 (Bloomberg) — Universal Music Group said Lucian Grainge will take over as its new chief executive officer from Jan. 1, replacing Doug Morris, who’s led the world’s largest music company since 1995.
Grainge, the 49-year-old head of its international music operations, will become co-CEO with Morris as of July 1, and the sole chief from Jan. 1, Universal’s owner, Paris-based Vivendi SA, said in a statement today.
Universal Music, whose artists include U2, Lady Gaga and Eminem, saw revenue decline 5.2 percent in the nine months ended September amid music-industry piracy and a drop in the number of CDs sold. Morris said late last year he “mentored” Grainge for the role as CEO the past five years.
“The time has come for Lucian to step up to the CEO role,” Morris said in a statement today. “I am very happy with the new organization as I have been grooming him to succeed me for quite a while now.”
Grainge has served at Universal’s international chief, in charge of more than 50 countries outside the U.S., since 2005. He headed the company’s digital strategy abroad as well as investments in merchandise, live events and artist services. A 30-year industry veteran, he has worked with the Pet Shop Boys, Eurythmics, Elton John, Snow Patrol and Abba.
As music increasingly goes digital, Grainge has sought to capitalize on the trend by partnering with Virgin Media Inc., Vodafone Group Plc and Nokia Oyj to offer various unlimited music services.
Morris’s Record
Morris, 71, once ran Atlantic Records and Warner Music when it was part of Time Warner Inc. He began as a songwriter and penned the song “Sweet Talking Guy” and produced “Smokin’ In the Boys’ Room” by Brownsville Station.
He most recently led an industry effort to make more money from online advertising by starting the Vevo music and video Web site, partnering with Sony Corp., EMI Group Ltd. and Google Inc.’s YouTube.
During his career, Morris acquired Polygram and helped popularize hip-hop music through the company’s Interscope Records label, home to artists such as Dr. Dre.
–Editors: Vidya Root, Robert Valpuesta
To contact the reporter on this story: Kristen Schweizer at +44-20-7330-7526 or kschweizer1@bloomberg.net
To contact the editor responsible for this story: Vidya Root in Paris at +33-1-5365-5018 or vroot@bloomberg.net
