Published Sep 28, 2009A press release from Warner Music Group confirms that Rhino Entertainment is "evolving" from physical reissues and catalogue releases to digital-only releases, as well as film, television, videogame and commercial licensing. As a result, the move has left 30 to 40 staff members without jobs, according to Vintage Vinyl News [via The Daily Swarm].
"This [shift] is consistent with our previously announced strategy to evolve the business in order to drive long-term growth at Rhino, provide our artists with the most effective resources, and offer fans even more ways to experience great music," states the press release.
It's unknown at this time what Warner, Rhino's parent company, is referring to when they talk about this evolution away from physical releases and towards the digital realm, but the layoffs point to a marked decrease in Rhino's releases, which will not only affect current bands but the reissuing of classic bands' back catalogues.
Plus, as you can see in the YouTube clip below, Warner seems confused about how to actually promote music online to begin with.
Meanwhile, in even more ominous developments, Digital Music News is reporting that the highest paid major label department heads could be scrambling for their jobs in the near future. Over the next few weeks, music execs who are paid over $1 million a year could be the targeted for termination.
An unnamed music industry source was quoted as saying, "These types of compensation packages were signed in an earlier time, a different frame of mind; they can no longer be sustained."
Could this be the beginning of the end of the bloated music industry as we know it? (And we feel fine.)