The Daily Swarm

UPDATE: Warner Music Group’s Statement:

As a result of the fundamental transformation of the physical new
release and catalog business, Rhino Entertainment is evolving. Part of
that evolution involves a shift from serving primarily as a catalog
and reissue company to one that handles WMG‘s global digital catalog
initiatives, film, television, video game and commercial licensing,
and name and likeness representation for legendary artists.

Reflecting those changes, Rhino has also reduced a number of staff
positions to focus resources in the fastest-growing areas of the
business. This 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.”

From Vintage Vinyl News:

Earlier today, Warner Music Group announced that they were laying off 30 to 40 people from Rhino Records, citing a “fundamental transformation of the physical new release and catalog business.”

What this means for the catalog giant is unknown. The first problem is that we don’t know if 30 to 40 people is 3%, 30% or 50+% of their workforce. What we do know is that the statement released by Warner Music Group, the owners of Rhino, does not seem encouraging for future releases of deep catalog products. From a Variety article:

“Company said Rhino will evolve into an entity that ‘handles WMG‘s global digital catalog initiatives, film, TV, vidgame and commercial licensing, and name and likeness representation for legendary artists.’”

There’s no mention of CD releases there, just “digital catalog initiatives.”

And this, from Digital Music News:

A number of highly-paid major label department heads are likely to be eliminated over the next few weeks, according to recent sources to Digital Music News. One well-placed executive noted that the target is a department head whose salary is overblown, sometimes past $1 million annually. “These types of compensation packages were signed in an earlier time, a different frame of mind; they can no longer be sustained,” the source relayed, while pointing to target packages within the ”$200,000 to $300,000 range” going forward.

So when will this happen, and where? Another source could only etch a “fourth quarter move,” though a dialed-in dealmaker shared news of an October 7–12 timeframe. On the exact label, sources suggested Warner Music Group, and possibly Sony Music Entertainment. EMI Music may eventually cut deeper within a bigger restructuring, potentially through bankruptcy proceedings down the line.