Warner Music Group Lays Off Over Twenty At Rhino Records

Rhino Records seems to get it. While other major label divisions seem to worry more about promotion than substance, Rhino concentrates on maximizing its back catalog, which includes all sorts of quirky stuff that appeals to niche audiences. I see these as the two main assets of an established record label today: a recognizable back catalog recorded before the music industry went haywire, and a willingness to release albums that might have only a small yet loyal cult following.

Warner Music Group, which owns Rhino, looking for a way to balance the books even as it makes a bid to buy EMI, laid off over 20 employees at Rhino. Commentator (and Rhino Records columnist) Bob Lefsetz sees this as a sign of a major label apocalypse involving mergers and the jettison of everyone except accountants and negotiators:

"The apocalypse is finally here. The major labels are going to merge,
whether internally or externally, and cut overhead until all you've gotleft are the bean counters and the deal makers. These companies aregoing to become giant licensing operations. New music? That will bedeveloped by somebody else, someone who doesn't need the same return oninvestment."

(image of Rhino Records staff from rhino)