From: SONY BMG Broadcast
Sent: Thursday, June 01, 2006 1:31 PM
Subject: Letter From Rolf Schmidt-Holtz



FROM: Rolf Schmidt-Holtz



TO: SONY BMG Employees



DATE: June 1, 2006





It is with regret that today I announce that Don Ienner and Michele Anthony have decided to resign from SONY BMG MUSIC ENTERTAINMENT. Donnie and Michele have been the bedrock upon which Sony Music

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.

I was consultant to Dick Asher at Sony in the 80's and witnessed the start of all this.
I remained consultant to Walter Yetnikoff (apart from a couple of years at PolyGram with Dick until Levy sacked him).
I advised Walter NOT to employ his friend Tommy (it may haunt you, I predicted. It did).
I've been a friend of Clive's since he was a lawyer at CBS in the 60's and remain so today.
I've been a friend of Donnie's since he replaced Al Teller and remain so. I think Donnie is one of the five great global music men. He has much more to do in this changing industry (he fell through politics).
I was consultant to Richard Griffiths at BMG and watched him assassinated by the Germans.
I was an artiste on Big Tree Records and remain a friend of Doug's - another of the five great music men. I brought him and Monte Chumbawamba and saw them sell 6 million albums off one hit single.

But the old ways are not the future.
And huge corpoations damage talent these days.
An entire tsunami of new thinking has to sweep across the music industry.
We need the experience and knowledge of the older members of our world but they have to see the way forward with clarity.
I remember Clive raving about a new kid he'd discovered decades ago - Puff Daddy.
I remember finally convincing Steve Greenberg that Who Let The Dogs Out was a hit.

A combination of past experience and fresh ears with new thinking and control over new technology is the way forward.

Don't write off Donnie. He's a music man.

Rob, my friend, be very wary of the USA. Most Brits don't cut it. Unless you can truly understand and enjoy a baseball game, you're toast.

I took Ray Cooper to the Superbowl when he got the Virgin gig and told him to watch John Elway scramble for an extra two yards.

"That's how you break America", I told him.
He didn't understand... and lost both Blur (Song 2) and The Verve in the USA.

British music can sell terrifically in the USA. But British executive skills often don't cut it.

Sony and Bertelsmann are in negotiations about Sony BMG, and my sorces tell me, there is a strong possibility of Sony buying BMG Music Publishing AND the 50 % of Sony BMG owned by Bertelsmann.

That the Americans begged for "the man behind the Manic Street Preachers"??

the feeling is - the Germans have gone mad.
People with no music ability at all are taking over...
Bowen, Doherty, Stringer... all political survivors.
Where's the music?
Have they been Bewitched?

when he fired mottola.

bertelsmann never had any knowledge about music, but they did a good job you until the mid 90s.

what is the role of clive davis in all this? He has a very big influence on schmidt-holtz.

davis was already semi-retired (j records) when the trouble at bmg where so great, that rolf had to get him back.

Bertelsmann even changed their policies: before the lex davis managers had to go when they turned 60.

and with his close connection to brother howard, rob is surely a SONY-MAN?

the stupid BMG lot were convinced Clive wanted too much.
He proved priceless and indispensible.
He's a dear friend of mine so I can say no more.
As for Stringer(s) - both are terrific guys and Rob even had the good taste to live with (and marry?) one of my ex employees!

Double posting?

to 1,5 billion euro.

They say, there are "lots" of interested parties, including Charles Koppelman (who made a fortune when CBS sold its publishing much too cheap) and surprise surprise Roger Ames.

It's called covering all bases.
And an old man is entitled to foibles!