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  • CLIVE DAVIS NO LONGER 'THE MAN' AT SONY BMG: Company shakes things up and puts Barry Weiss in charge.

    Wow, we didn't see this one coming, but in a shake-up that reflects the music business as it exists now, legendary music man, Clive Davis is being shuffled off to another post.
    The move is also a nod to the new realities facing the music industry: keeping costs in check amidst declining sales.
    On Thursday, Sony BMG Music Entertainment said that Davis would give up his corporate role as head of its BMG division and control of its RCA Label Group for a new creative post.
    Barry Weiss, the chief of the company’s Zomba Label Group, will become chairman and chief executive of the BMG Label Group, overseeing RCA and Zomba, and an array of artists like Justin Timberlake, Alicia Keys, OutKast and Kelly Clarkson, reports the NY Times.
    Clive Davis with Alicia keys, Whitney Houston and Ashanti.
    As the world knows, Davis, 76, is revered for his ability to find and develop hit artists. His latest in a long line, which includes Whitney Houston and Alicia Keys, is British singer Leona Lewis, who's currently number one on the singles chart.
    But developing artists and creating hits the way Davis does comes with an expensive price tag. In short, making expensive videos and launching pricey marketing campaigns are no longer business as usual. Sony BMG’s decision to promote Mr. Weiss underscores the idea that hits alone cannot save the industry.
    Weiss, 49, who also personally oversees many of his artists’ creative decisions, has enjoyed his share of chart success with acts like Chris Brown and T-Pain. But he also has a reputation for tightly managing expenses, and being savvier about the digital revolution. T-Pain’s hits, for example, have had considerable success as ring tones, the kind of high-margin, low-glamour products that are becoming more important to labels’ bottom lines.
    Davis will continue to work with some acts and report directly to the Sony BMG chief executive, Rolf Schmidt-Holz.
    “The business is under tremendous pressure, and it’s very tough to maintain profits as they were in preceding years,” said Danny Goldberg, a former record company president who now runs the management firm Gold Village Entertainment. “So it’s clarifying that they would turn to Barry Weiss, who is on the one hand responsible for signing talent and on the other hand has shown a discipline about cost-cutting.”
    Hmm, there goes Clive's annual Grammy bash.
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