CARAS UNVEILS NEW JUNO DESIGN Plus: An interview with original Juno Award creator Stan Klees. -Page 17 Volume 70 No. 11 January 17,2000 $3.00 ($2.80 plus .20 GST) Publication Mail Registration No. 08141 ANNE M URRAY WHAT A WONDERFUL WORLD NOW PLATINUM! ke WHAT A WONDERFUL y0RLD "LET THERE BE LE6 -1-V'Ë THE DUET WITH DAWN LANGSTROTH Tkai'tkyow Ann& fi)r 30 _greatyws - er.,u4ic tojedter. You,efriends at EMI Mu,sic- Caja, www.emimusic.ca 2 -RPM - Monday January 17, 2000 sell-off. We had a couple of major releases that Lennox and Reynolds guide Universal/PolyGram seemed to happen right at Christmas time, with Jaz- Mergers seem to be the hot topic of conversation honchos at head office may finally have just abit of Z and DMX. And then we had some other things these days, and the executive branch at Universal time to enjoy the fruits of their massive labours. that took areal significant jump -Limp Bizkit, Blink Music knows all too well the massive amount of Overseeing the entire transition from day one 182, even SClub 7really took off. Dr. Dre, Enrique work required to make the transition asmooth one. have been the two deans of the Universal Canada held up very well, and Shania just keeps on going, It's been more than ayear since the Universal entourage, chairman Ross Reynolds and president thank you very much." acquisition of PolyGram, and the ensuing twelve+ Randy Lennox. While the holidays have given everyone at months have been astretch of an intense amount of Although the Christmas sales season is just Universal achance to take adeep breath and relax work and planning to keep customers, accounts and about over, the sell-through period continues into (just for aminute), they've also afforded Reynolds, artists happy. the new year. Both executives are more than pleased Lennox et al achance to reflect on the year-long Since the PolyGram integration, the Universal with the sales figures from the holiday season, and transition that followed the PolyGram integration. team has been divided essentially into four separate both forsee even better things in the first quarter of The merging of two multinational companies streams -Interscope/MCA; Universal/Mercury; 2000. can be ahuge undertaking, and quite often, it's easy classics and jazz; and strategic marketing. Most of "There was some concern right up to for some smaller elements to get lost in the shuffle. the transitory moves have been made, the mid-level Christmas," says Reynolds, "and it certainly was late But according to both Lennox and Reynolds, a management structure appears to be set, and the head this year, but we seem to have had some very nice whole lot of work by everyone involved allowed for an unusually smooth transition, one that most retailers barely noticed. AOL/Time Warner combine in biggest-ever merger "We're very pleased that we've tackled the IT and other logistical challenges," adds Lennox. "And The biggest industry shockwave of the new year was Ted Turner will become vice-chairman of the new felt on Monday January 10th with the announced merged companies. Turner, the single largest $160 billion takeover bid by internet leader America stockholder in Time Warner, saw his personal worth Online (AOL) for Time Warner Inc. If approved by increase by more than $2.5 billion with the rapid shareholders and regulators, the deal would be the rise in Time Warner's stock value. largest merger in corporate history. While the merger likely won't meet final Already, industry analysts are speculating that approval for several more months, the two sides did the AOL/Time Warner merger would spark awave announce several initial marketing, commerce and of similar deals between content providers and content agreements which will take effect distributors. immediately. Included among these are giving AOL America Online is the largest new media members access to clips from Warner Music artists, company in the world, with more than 20 million and CNN news content. subscribers in North America, including 130,000 in In addition to providing AOL subscribers avast Canada. AOL is available in 15 countries, in seven amount of new content (via their film, music and different languages. publishing arms), the deal also nets AOL Time In addition to their interne service, AOL also Warner's US cable network, the second largest in boasts Netscape (the world's #2 internet search the country. This will allow AOL access to ahigh- service), and MovieFone (a telephone and online speed network, something the internet company has movie booking and information service). strongly desired. AOL subscribers have complained Time Warner is the world's largest traditional for some time about the slowness of the service. media company, with holdings in film, television, The AOL/Time Warner merger led to publishing, and, of course, music. Warner Music speculation that other media multinationals might Ross Reynolds Canada declined to comment, pending further join forces, which in turn sent stock prices soaring also our customer feedback, as far back as six months information from their US headquarters. in the media sector. On the TSE, Seagram's stock ago, has been very positive in terms of it being The deal, announced by AOL chief executive rose $7.15 (or 10%) on the day, closing at $78.65, virtually seamless. It's beginning to feel like afamily Steve Case and Time Warner CEO Gerald Levin, while Rogers Communications jumped $3.55 to atmosphere. We managed some things in December sent Time Warner stocks soaring on Jan. 10, $37.55. that were fantastic, that's probably the best word I eventually closing at $90 (US) on the New York Meanwhile, on the New York Exchange, can use, in terms of philosophical understanding and Exchange. The combined company would have Disney stock rose by $4.81 (or 15%), closing at those types of things." estimated annual revenues of $30 billion, with AOL $35.94, while on the NASDAQ listing, Yahoo's Reynolds notes that one group that did express shareholders holding a55% share. stock rose more than $28, closing at $436. Other concern over the merger was the collection of Under the new agreement, Case would become media outlets such as CTV, CanWest Global, independent labels affiliated with Universal/ chairman of the board, while Levin would serve as Qualcomm and Videotron also saw sharp rises in PolyGram. And while there were some casualties in chief executive. Current Time Warner vice-chairman their stock price. the process, the overall move was well received by EMI Music Canada staffers presented the members of Moist with Just prior to the holidays, Tara MacLean helped open the new HMV platinum awards for their latest album, Mercedes Five & Dime, and store in Nepean, Ontario, performing to a store full of fans and signing quadruple platinum for their debut, Silver. The presentation followed autographs. MacLean is currently charting with her AC hit, If IFall, the group's December 17 show at Toronto's Air Canada Centre. from her Nettwerk album Passenger. RPM - Monday January 17, 2000 -3 the indie affiliates. bound to be plenty of whispers about possible similar from No Doubt, The Wallflowers, Aqua, LL Cool J, "There were dire predictions that there was moves from the other multinational media U2, Eryka Badhu, plus another new album from going to be a fallout with our independent label conglomerates. Limp Bizlcit. partners, and with the one obvious exception of And there is still plenty of questions as to the Reynolds adds that at the company's Attic, we've maintained agood relationship with plans of Universal, and other record companies, management meetings in December, the focus was all of the independent labels that we deal with, when it comes to the use of the interne as both as a no longer on erecting the company's new structure, including Fantasy in the US, and then of course we marketing and sales tool. but was instead on making the system better. added Disney. The much ballyhooed 'Nigel' system (for the Part of making that system better is "And I'm very gratified about that, because secure digital downloading of music), ajoint venture reconfiguring Universal's distribution centre, which every interview ayear ago asked 'what's going to of Universal and BMG, was recently given asneak is still an ongoing process. Reynolds notes that the be the fallout of all of this'. But from the independent preview by Seagram president/CEO Edgar centre's business (which also includes home video) label standpoint, Ifeel good about it. Ithink we've Bronfman Jr. at an investment conference in 'just exploded' the day following the integration. been able to offer them good service, throughout a December. And it's adistribution centre which will handle more difficult time, and Ijust see it getting better." At the time, Bronfman felt that the initial testing than half abillion dollars worth of business by the Lennox adds that many of their accounts and of the system was to begin right away, with sales of time their fiscal year ends. artists were concerned about slip ups, but he wasn't. digitally-delivered music to begin in the spring. But for the man who's been in the record He notes that the organizational structure of Universal and BMG are joined by Matsushita business for more than three decades, there appears the new Universal essentially replaces and replicates Electric Industrial and AT&T in the venture. to be no slowing down. Rumours of Reynolds' what existed previously with MCA and PolyGram. For their part, neither Reynolds nor Lennox impending retirement have been circulating for some "So artists that are signed have an option of wanted to comment specifically on the potential time, but the chairman brushes them off quickly, and signing with Steve Kane's stream or Sarah Norris' interne initiatives, only noting that Bronfman Jr.