Major Labels

So, That’s Where The Money Goes: Warner Music’s New $16M Per Year NYC Office

image from www.frequencynews.comMajor record labels have long claimed that they need to take huge profits from hit records to make up for their many misses.  But its the excesses, particularly in this supposed new age of a leaner, meaner and more enlitghtened music industry, that leave one wondering if anything has really changed. Such is the case with Warner Music Group's new deal to rent office space in New York.

Warner Music will be paying a cool $16 million a year for it's NYC offices and has committed to do so for at least 16 years. The offices rented for from The Paramunt Group are at 1633 Broadway in midtown Manhattan. They also have the option to extend the deal another 10 years.

An old school industry in an ultra-expensive old shool power location.  So much for new thinking at Warners.

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  1. I can’t imagine all the previously signed acts from the past who never really got the marketing push or backing from Warner because it just wasn’t “in the budget” to do so. :/

  2. This article is misleading. To my understanding, WMG is moving into this new office as a way to consolidate multiple NYC offices into one.
    A good addition to this article would be mentioning what they currently pay for office space. I have to imagine it’s more than $16M.
    Additionally, mentioning what is reasonable for a 300-400 person company to pay for real-estate in NYC.
    Lastly, if they’re paying $16M/year over 16-26 years… That’s without inflation. Would this article still be shocking 25 years from now if you said WMG is paying $16M/year in rent for an NYC office?

  3. Totally agree with David. Their current main HQ location at 75 Rockefeller plaza must be exorbitant!

  4. No reason for this. Except for a small A&R staff and few other people move the offices to Syracuse NY. They have a music business school Plenty of kids to intern. Standard of life on less pay is way, way higher. Marketing, Radio etc have no reason to take up space in NYC today. Use media and technology to help put more money into promoting music.

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