STRAUSS ZELNICK FACES GLOBAL CHALLENGES AS CEO OF BMG ENTERTAINMENT (Continued from page 1) After months of speculation, Zel- says Dornemann. "I believe the glob- financial performance, Gassner says RCA, and Windham Hill, boasts such al finance and legal operations under nick was officially named to the alization of the business is a strength it has been a "difficult" 12 months. top worldwide acts as Sarah CFO Thomas McIntyre, making worldwide post July 28 (Billboard - of BMG. To integrate it even more, I "Like everybody else, we have had McLachlan, Dave Matthews Band, McIntyre and Zelnick the only two Bulletin, July 29). Since joining wanted to have the day -to-day oper- our Far East problems. On the other Puff Daddy, Eros Ramazzotti, Annie BMG Entertainment executives who BMG in January 1995 from software ations under one hand. I didn't want hand, most of this was offset by Lennox, Kenny G, Toni Braxton, and report directly to Dornemann. developer Crystal Dynamics, he has to distinguish between international extraordinary results from the Ger- Ace Of Base. served as president /CEO of BMG and North America." man- speaking territories and the In other BMG Entertainment Assistance in preparing this story Entertainment North America. The advance of Zelnick affects the Latin markets." news, the company has consolidated was provided byAdamWhite inLon- Under his watch, BMG Entertain- reporting line of BMG Entertain- BMG, whose labels include Arista, all North American and internation- don. ment North America ended 1997 ment International president/CEO with a 14.2% U.S. market share, a Rudi Gassner, 55, who previously was record high for the company. accountable directly to Dornemann BMG Entertainment is a $4.4 bil- and who will now report to Zelnick. lion firm, according to the company, Gassner's division has made a signif- GermaN Nip -House Enjoys Retail, Radio Boom with more than 200 record labels and icant contribution -some would say operations in more than 50 countries. the most significant -to the growth '80s Breakdance Style Crosses Over Into Mainstream Zelnick will spend much of the next and profitability of BMG Entertain- six months on a tour of many of BMG ment over the past 10 years. Zelnick BY WOLFGANG SPAHR No. 1 hit, or even a hit. I just heard music based on it. Now it's Entertainment's worldwide offices. says that "more than 50% of [BMG FRANKFURT -While German - the record in the clubs and thought, unleashed a real breakdance "I'll probably spend quite a bit of time Entertain- made hip -hop conquers half of the `Cool, it's just a DJ mix.' I think the revival." on the road, getting a sense of how ment's] revenues market (see story, page 1), "hip - video had a bigger effect than the N.Y.C.C.'s first release, a cover our operations work, because while IMP come from out- house" is seeing to the other. Classic record itself-it's got breakdancers of the Beastie Boys hit "Fight For I've been to a number of countries, I side of the U.S." hip -hop rhymes over four- to -the- in it. It's like a relief from all the Your Right (To Party!)," hit No. 11 haven't been to all of them and I "We have a floor beats is a phenomenon that has stuff in rap you see today." on the chart immediately, and haven't been to all of our regional cen- really strong crossed from the dancefloor to main- Successful hip -house produc- 200,000 singles have been sold ters, certainly not lately, so I'll be on international team in place led by stream. tions on other labels include since its February release. It was the road quite a lot," Zelnick says. Rudi, and the watchword of this com- Retailers are now reporting a hip - N.Y.C.C. (edel), Triple S (edel), also a U.K. top 20 hit. The second He adds that he expects company pany is that the division heads have house boom, with radio stations also and Music Instructor (Fuel /East- single, the group's own composi- growth to come not from mergers or a great deal of autonomy, and that joining in. The music, fashion, and West). The electro -pop track tion "Can You Feel It (Rock Da acquisitions -he flatly dismisses won't be changing," says Zelnick. attitudes of the early -'80s break - "Super Sonic" by Berlin act Music House)," has hit 60,000 in sales, speculation that the company will pur- "Rudi will continue to run his busi- dance era are now back in vogue in Instructor sold 50,000 units in only says the label. chase EMI -but "from doing it the ness. I hope to be quite supportive of Germany, but they are being taken 10 days after release (Global Music Hamburg -based Triple S has old- fashioned way: by, signing artists that, and I clearly have some learn- up by a teen generation that is too Pulse, Billboard, June 20), thanks released a cover of Tag Team's we believe can ing to do, and I young to remember it. to Viva's heavy rotation of the "Whoomp! (There It Is)." Since its have long -term want to use some Epic Germany's Epidrome label videoclip. release on March 9, it has already careers, helping time to do that." reports sales of 1.3 million units for Says Mike Michaels of Music sold 15,000 copies. them reach their "The new re- the movement's defining track, "It's Instructor's production team, creative pinnacle, porting structure Like That" by Run -D.M.C. vs Jason Berlin's Triple M productions, Assistance in preparing this story marketing and dis- will have no direct Nevins, and more than 200,000 of the " `Super Sonic' was the result of an was provided by Menno Visser in tributing them as impact on the follow -up single, "(It's) Tricky." idea to go back to the breakdance London well as we can, and international divi- The beat has been taken up by era of the '80s and to produce getting up the DORNEMANN sion," agrees GASSNER domestic acts, including N.Y.C.C. next morning and Gassner. "As it is, a (New York City Connection), Triple doing it all over again." good exchange of ideas and views S, and Music Instructor. HIP -HOP FACES OBSTACLES AS GERMAN EXPORT Dornemann, who also heads Ber- between Strauss and myself will prob- Purchaser Norbert Dethloff of (Continued from page 74) telsmann Entertainment's wide - ably bring out new ideas and new retail chain WOM sees hip-house as ranging TV interests, says that he visions for the company's future." a "trend" product for young people stand a chance on the U.S. market thing; they can change with the has been quietly grooming Zelnick To those who contend that Gassner ages 14 -19. "We have a separate since it crosses the language barrier. times." for the new post since the 41- year-old is chagrined by the new corporate department for it. New product is Unlike in Germany, we don't have Until now, German club music has executive joined BMG and that the alignment, given his division's finan- being added daily and is selling very any influence in these [other] terri- succeeded internationally only when decision to make Zelnick the global cial contribution to the whole company, well." tories yet." it used rap merely as a "decorative" head was made a year ago. Dorne - he says, "We will continue developing Axel von Bruch of N -Joy Radio in Hinrich Stiirken, a former prod- element and sounded neither too mann adds that he felt strongly that domestic repertoire, taking global Hamburg says the youth- oriented uct manager for Universal Music and German nor too hip -hop. Frankfurt- the worldwide entertainment divi- marketing initiatives, and strategizing FM station is playing hip -house now a freelance marketing consul- based techno /pop group Snap! on sion be led by an American. our business on a local basis." constantly. "We're playing every- tant, is also unenthusiastic about the Logic Records "adopted" a rapper "I believe a worldwide music com- Gassner renewed his BMG con- thing on the charts because that's genre's potential abroad. "Sometimes for "The Power," which became a pany is at an advantage when being tract earlier this year, reportedly for what the 14- to 19-year -olds want," even the border to neighbors like U.S. hit. Yet Snap! was not a hip-hop run by an American," says Dorne - a five -year term. Gassner joined the he says. Denmark appears insurmountable act, and the rapper, Turbo B, was mann. "The source worldwide for company in 1987 after 17 years at The first Run -D.M.C. remix was for German artists." But he notes replaced by a series of female vocal- creative cultural products is the U.S.; PolyGram. licensed by Epidrome from Smile/ that the times may be changing: "I ists. even if it goes up a little or down, it's Perhaps anticipating the new Profile Records in New York and think the situation is opening up, and The same holds true for the equal- a cultural dominance ... Strauss has structure, Gassner has been making was No. 1 in most major markets other countries are more interested ly successful if volatile Darmstadt - the creative know-how; he's an Amer- significant, top -level changes in his and nearly every European terri- in releasing German-speaking prod- based Dance Pool /Sony act Culture ican, which is a plus, and he under- division over the past nine months. tory. Nevins is a top New York uct, if the music is right." Beat, featuring-until recently - stands our corporate culture very Former Epic Records president house producer who has already Universal's reason for signing a American rapper Jay Supreme. The well. He's extremely bright." Richard Griffiths was recruited at remixed releases by the Fugees, licensing pact with production com- new Culture Beat album, aptly It's that creative angle that Zelnick the beginning of the year to run Robin S., Maxwell, and Mighty pany Booya Music (see story, page 1) titled "Metamorphosis," features wants to continue to stress. "The phi- BMG's operations in the U.K. and Dub Cats. gives some indication of the genre's rapper N'XT UP, who can be heard losophy of the company that we've Central Europe, alongside GSA and Epic's managing director, Joerg international outlook. Universal GSA on two tracks but is not part of the established as a team is to try to be Eastern Europe chief Thomas Stein. Hacker, considers "It's Like That" president Heinz Canibol says the "group" lineup. the most creative company, to try to Also, Gassner's longtime lieutenant to be the perfect crossover deal came about after Universal was One current candidate for inter- attract the best artists and to attract in A &R and marketing, Heinz Henn, between rap and house. "The able to cross over Pappa Bear's Ger- national success is "Tabula Rasa" by the most talented executives, and yet left the company in June (Billboard, music appeals to broader target many/Switzerland /Austria (GSA) hit Freundeskreis & Mellowbag, a col- do that inside a very efficient busi- June 27). In July, Gary Dale was groups," he says. "Hip -house has "Cherish" into other regions, not laboration between the two German ness structure. I don't see that strat- named senior VP of international arrived on the scene at the right least the Nordic countries. Booya rap acts, the first of which is on Four egy changing," he says. marketing, while Henn's A &R re- time to allow radio stations to labelmate Nana, whose releases have Music /Columbia/Sony Music, the Part of that efficiency means hav- sponsibilities became the province of include it as a key component of gone through Motor/ PolyGram, how- second is on Downbeat/WEA. ing Zelnick retain his role as head of senior VP of A &R Richard Sweret their programming." ever, has had only GSA success. Harbingers of doom, meanwhile, North American operations. "It's my (Billboard, Aug. 1). Both Dale and Epic Germany has now closed a "We signed the deal because they should take courage from the succPss request that he keep both. He's Sweret report to Gassner. deal with Nevins. An album of re- are the hottest production team," of another German- language act in young, he's strong, he has to work BMG's fiscal year ended June 30; mixed rap classics is in the works. Canibol says. "Their standards are another genre. A year ago, no one hard," says Dornemann, with a laugh. however, the privately held company Meanwhile, the videoclip for "It's now matching those in other territo- could have predicted the success of Such streamlining is Dornemann's has yet to announce its numbers. Zel- Like That," produced by Markus ries." Motor Music's pyro- rocker group goal for the company, and as such, he nick says that North American rev- Sternberg in Los Angeles, is still Also, with Booya's principals, Rammstein, whose "Sehnsucht" felt the need to consolidate world- enue is up almost 20% over last year's receiving top rotation on Viva, Viva Biilent Aris and Toni Cottura, hav- bowed at No. 80 on The Billboard 200 wide operations under one chief. $1.7 billion and that profits are up 2, and MTV ing had international success with (Billboard, Aug. 1) despite its all-Ger- "This company has been concen- almost 25 %, after having doubled in Darryl McDaniels, aka D.M.C., Fun Factory, Canibol notes, "They man repertoire. trating on international growth," the '96 -'97 period. As for his division's says, "[There's] no way I expected a are not just limited to the hip -hop CHRISTIAN ARNDT

BILLBOARD AUGUST 8, 1998 75

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