Aging CEOs, Ambitious Nepo Babies and a Tech Revolution: Succession in the Music Biz

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The music industry has historically been characterized by close relationships, even among those not genetically related. However, in today’s recorded music sector – dominated by 84% of companies under the three main labels, Universal Music Group (UMG), Warner Music Group (WMG) and Sony – many key figures are actually family members. When Lucian Grainge became chairman and CEO of UMG in 2011, his son, Elliot, was still a fresh college graduate. Now, Elliot Grainge manages Atlantic Records, home to artists like Ed Sheeran, Coldplay, and Bruno Mars, alongside another individual often referred to as a “nepotism baby,” Val Blavatnik, the 27-year-old son of WMG’s billionaire majority owner Len Blavatnik. Val Blavatnik serves on WMG’s board of directors and is increasingly involved in the company’s operations.

Elliot joined our company in late 2024 when he was 30 years old, with the aim of reversing our declining market share that had dropped from 10% at the end of 2020 to 5.7% the previous year. His past accomplishments in discovering new talent for labels like 10K Projects, where his roster included Ice Spice and the contentious 6ix9ine, had already made him well-known in the industry. (WMG obtained a majority ownership of 10K in 2023.)

Elliot started working for us in late 2024 when he was 30 years old to help improve our sales, which had been decreasing since 2020. His past successes in helping new artists gain popularity at his previous label, where he worked with Ice Spice and 6ix9ine, were already famous. (WMG took over a large part of this label in 2023.)

In an interview with The Wall Street Journal earlier this year, I shared my perspective: “It seems everyone in the industry is following the same path. Yet, I can’t help but feel that, despite the incredible talent out there, many of us are products of the ‘fax machine era.’

Elliot’s promotion to CEO came with some turbulence, primarily marked by the departure of Julie Greenwald, a highly respected executive who had nurtured Atlantic Records for two decades. Now, all eyes in the industry are focused on the broader Warner Music scenario, particularly on the company’s leadership transition plan.

A variety of executives from management, music, and publishing within WMG have shared similar sentiments, expressing the belief that CEO Robert Kyncl, who joined the company in 2022 from YouTube, might be approaching his final days at the helm. However, a representative for WMG has dismissed these rumors as entirely false, choosing not to offer additional comment on the matter.

Regarding who might assume control if a certain event occurred, there was not unanimous agreement among all parties; however, Val Blavatnik was generally considered the front-runner. As one artist manager put it, “Len will quickly install his child in that position.” The reasoning behind this is that it represents the succession plan, and Warner Bros. is seen as a symbol of Len’s personal achievement or vanity.

The lead manager remarks, “Val and Elliot have a strong relationship. It seems logical to invite Elliot to join us temporarily, allowing him to observe and offer assistance to Val.

Another insider puts it more bluntly: “This has always been a dynastic play for Len and Val.”

It’s understandable that Kyncl might be an attractive subject for gossip, considering he’s the only CEO in his field who comes from tech and media rather than the more unconventional world of music. The music industry, with its unique work culture and heavy emphasis on intangible qualities like “golden ears,” often resists outsiders. Adding to this, WMG’s Q1 earnings report was disappointing (the company’s stock price has dropped by 16% since last year at this time), which makes it easy for people to scrutinize Kyncl, even if the criticism is unwarranted. However, it would be somewhat ironic if a change occurred now, given that AI is about to revolutionize the music industry. It might seem counterintuitive for an outsider like a digital native not to have the authority to steer through these choppy waters.

Even though there’s a focus on Warner at the moment, it’s important to keep in mind that the unpredictable and recurring patterns of the music industry often dictate that success is determined by popular songs. If more hits emerge, the discussion could shift significantly. Currently, Warner Music Group controls five of the Top 10 positions on Spotify’s Global 50 chart. The top spot belongs to Alex Warren’s “Ordinary” (Atlantic), followed by two spots held by Warner Records’ Sombrero, the seventh position is taken by “La Plena – W Sound 05” from Warner Music Latina, and Atlantic Records holds the eighth position with Rosé and Bruno Mars.

As a music enthusiast looking back, it seems that significant technological advancements have often paved the way for a power shift within the music industry. During the early days of Napster and peer-to-peer file sharing, Doug Morris (alongside his Universal Music Group team, including Jimmy Iovine who later sold Beats by Dr. Dre headphones to Apple for an impressive $3 billion in 2014) found themselves on the frontlines fighting against the impending demise of CDs. The results were somewhat mixed.

The age of digital downloads then emerged, making Apple’s iTunes the leading global music store. However, the 2000s saw a continuous decrease in year-on-year album sales as consumers shifted from purchasing albums (usually priced at $9.99 and up) to buying individual songs for just 99 cents.

By 2011, on the brink of the streaming era, Lucian Grainge led Universal Music Group’s shopping spree. The first purchase was EMI, a company rich in catalogs, acquired for $1.9 billion in 2012, interestingly the same year Spotify debuted in the U.S. Today, its acquisitions make up about two-thirds of the global music market share.

Currently, Grainge, who benefited significantly from the company’s IPO in 2021, holds the title as the longest-serving CEO across the three label divisions. Sony Music Group chairman Rob Stringer is not far behind with his impressive tenure. Having spent his entire professional career at the company, he took over from Morris as CEO in 2017 and has since experienced remarkable successes, such as Adele’s record-breaking albums, Beyonce’s culture-shifting releases, and introducing Harry Styles to the world, among other achievements.

Is there another shift coming up on the horizon? There’s definitely a buzz about it as leaders and experts are debating when the established leadership will hand over to a new generation preparing for the next phase. Some speculate whether Grainge might continue leading after his contract expires in May 2028, but others argue it’s too soon to predict his successor since he remains actively involved in the company and has outlined a plan for its future direction. However, discussions about succession have taken place at UMG board meetings, and a source close to the situation dismisses the idea of bringing in someone from outside the UMG family for the position in the future.

Indeed, sources indicate that Republic Collective CEO Monte Lipman and Interscope chairman/CEO John Janick, both part of Universal’s U.S. operations, are potential contenders for the role. However, it’s important not to overlook other territories as well, since there are numerous competent internal candidates who could potentially take on this position.

Over time, it appears that a noticeable pattern has emerged in the music industry’s leadership: fewer women are leading labels aiming for top C-suite positions. Not so long ago, this image seemed more promising with Michelle Jubelirer as chairwoman and CEO of Capitol Music Group, Greenwald at the helm of Atlantic Music Group, Ethiopia Habtemariam as CEO of Motown, and Sylvia Rhone in charge of Epic. (On the publishing side, things are slightly better with Jody Gerson serving as CEO for a decade at Universal Music Publishing Group and Carianne Marshall as COO since 2018.) One female executive laments the scarcity of women, attributing it to the industry’s failure to effectively cultivate talent. “For years, old white men have dominated the industry,” she says. “It’s shameful that the labels are letting this happen, but it’s unfortunately not surprising. With the recent uproar about diversity, equity, and inclusion (DEI), it’s become easier for everyone to simply opt for hiring an average white man instead.” (Rhone remains the only female label head, though at 73, her retirement is often discussed.)

Under various music conglomerates, there’s a wave of new leadership emerging. In 2021, Imran Majid and Justin Eshak took over as co-CEOs at Island Records (known for Sabrina Carpenter and Chappell Roan). Tunji Balogun became chairman-CEO at Def Jam (home to Justin Bieber and Big Sean) in 2022. At Mercury (Post Malone’s label), Tyler Arnold, aged 32, was appointed as the chairman and CEO in March. Meanwhile, Sony Music has announced new leadership for Arista (Maneskin’s label) with Clio Massey, daughter of outgoing chairman David Massey, moving into a co-president role alongside Matt D’Arduini. Warner Records, under WMG, has seen success with Zach Bryan, Benson Boone and Teddy Swims under the guidance of their chairman and CEO Aaron Bay-Schuck, who is the oldest among this new generation of leaders at 43 years old.

At age 31, Elliot Grainge appears to be a more youthful, agile record executive who may not be as tied down by traditional methods of operation within the industry. However, when your father and mentor is the one who is older, rumors about nepotism will persist until he establishes his own successes. In an industry where figures like Azoff, Davis, and Wasserman are often associated with nepotism, the scenario remains consistent.

Elliot Grainge, at 31, seems to be a more modern, flexible record executive who isn’t as bound by conventional methods in the industry. Nevertheless, due to his father being older and a mentor, whispers of nepotism will linger until he has made his mark independently. In an industry where Azoff, Davis, and Wasserman are often linked with nepotism, the situation continues to resemble this pattern.

A longtime industry insider comments, “If Bob Iger had a son working for a rival company, it would be unthinkable.” In the music world, they might say, ‘Oh well, we’re just being stupid.’ Over and over again, these CEOs seem unwilling to step down or act ethically according to their corporate responsibilities.

An adaptation of this tale was published in the June 4 edition of The Hollywood Reporter’s magazine. To keep up with such updates, consider subscribing [here].

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2025-06-04 19:55