"The exit of the pair from Sony Music today may have stunned the record business, but insiders say it was the result of the ‘perfect storm," a confluence of three major factors,"according to HITS.
In summary HITS wrote that the trio of factors were: 1) poor sales with just 2 records in the top 50 year to date dankings. 2) ongoing exectuive turmoil at the company 3) an attempt to bring in a trusted confidant (his brother) to more quickly integrate the clashing corporate cultures.
"We are witnessing the last thrashings of the dying dinosaurs. The model we created in the 60’s doesn’t work anymore. In this global new technology, a new method of finding, exposing, promoting, breaking and selling music has to emerge. – comment on The Velvet Rope"
"This company is undergoing a much-needed radical restructuring," said one Sony BMG senior executive who requested anonymity for fear of angering superiors. "There was a new perspective on this company’s direction, and a new team was needed to execute that vision."
"BMG is running things right now," said Bob Lefsetz, publisher of a widely read music newsletter. "Their guy is in the chief executive’s chair and they have all the hits. So they are ushering out the people they don’t like." – LA Times
Some industry observers believed that the senior Sony Music execs’ jobs went on the line after Lack, now chairman of Sony BMG, exchanged jobs with Schmidt-Holtz in February. "It was in the works for a while," one source said. – The Hollywood Reporter
