New EMI Digital Exec: I Don't Buy Music

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Cory Ondrejka.jpgWe've got no idea whether EMI's new management knows what to do with the ailing record label. But we do know they're good at splashy hires -- the kind designed to say "Check it out, world! Definitely not your father's music conglomerate!"

First, Guy Hands brings in Google's (GOOG) Douglas Merrill to run digital, a move met with many approving nods from the label-unfriendly blogosphere. Now Douglas has hired Cory Ondrejka, who replaces Lauren Berkowitz as digital SVP*. Cory's resume:

  • Co-founder, Second Life parent company Linden Lab
  • Visiting Professor, USC Communications program
  • Six years of service in the U.S. Navy, where he held "Top Secret/SCI clearance at National Security Agency."
  • Zero experience in the music business.

What's that, you say? You'd like to see more evidence of against-the-grain thinking? OK: See Cory's blog today, where he announces his move (made two weeks ago, actually) -- along with the news that since 2000, he's purchased 5 albums. Ah, but surely he's a music hound who spends tons of time cruising iTunes, or some of the other legal music source, right? Nope. "I neither buy nor hear much new music." His explanation certainly sounds familiar to us:

Why not? I hear lots of new music I like – anything from the first couple seasons of Alias would work – but I never hear new music in the right context to buy it. When I listen to radio, I’m listening to NPR to catch up on the news. The good local music stores are all gone. When I’m working, I want to hear music I like, so I have a very low threshold for experimentation. Coworker’s iTunes shares provide a hint at something new, but DRM and the hassles of being on the wrong computer – working on a desktop when my music is on my phone and laptop – keep me from jumping onto the iTunes Music Store to make a purchase.

Note that none of this lack of purchasing is because I’m just torrenting stuff. The problem is that connecting discovery of new music to the ability to own the music is completely jacked. Even when I knew I wanted something – Accelerate – I had the problem that I was traveling with my MacBook Air, so buying a CD was useless. I had never setup the iTMS on that computer and you would be amazed at how hard Apple has made that process. It’s like they don’t want to sell me music. Then, once I did remember all the passwords I needed, I couldn’t figure out whether the iTunes download was DRM free. So I went to Amazon, which was slightly easier and made it clear the download wasn’t broken via DRM.

Then Cory humbly submits while it doesn't seem hard to fix this mess, he's got no idea what he's doing, so he'll be learning on the job. Fair enough. We look forward to getting a progress report.

*What's become of Lauren Berkowitz, who was formerly head of digital development for EMI North America? We don't know. She was there as of April 1, when Douglas came aboard, but we're told she's no longer with the company. We're also told that Cory isn't replacing Lauren -- he's taking a newly created job that spans across all of EMI's territories.

See Also: EMI Gets New Digital Boss From Google

Photo: Matilde Gattoni



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36 Comments

Alex R. (URL) said:
Before you find the solution, you have to understand the problem. Personally, I'm on board.

I know you all don't like the short-term prospects for labels like EMI (neither do I), but at least they understand the problem and aren't sticking their heads in the sand (ala Warner Music).

Alex, don't really know that there's a major difference between the two, other than the fact that EMI now has a much bigger debt load to service than WMG. The truth is that no single label can do much about the industry's endemic problems on their own -- they have to act in concert (which is another story).

Glenn (URL) said:
What a bunch of terrible excuses. Dude just doesn't like music very much. It's obvious. But maybe that's the future of EMI, getting people to buy music when they don't want to lift a finger or go out of their way in the slightest to buy it. Or maybe EMI should concern themselves with focusing on actual music fans. Either way, a very interesting hire. Maybe MGM can hire me...I almost never go to the movies.

bayareaguy said:
Glenn, you say this guy's excuses are lame but to me he sounds like a discriminating person who values his time. You're not going to find him falling for promotional tricks or buying crap in some chain store. Who knows if he will make a difference but for me I'm glad he represents a market segment with which I empathize.

Adam (URL) said:
Sorry, I'm not terribly impressed. Doesn't hear much music? I can totally understand not buying much music (I haven't bought a CD *or* torrented music in the last year), but... has he never heard of last.fm or pandora or imeem or any of the zillion other interesting music discovery services?!

Simon said:
This is like selecting an Atheist to be Pope.

Tyler said:
Jesus. The move away from people who love music to people who worked on some "Web 2.0" site. He doesn't appear to understand his customer base, how people consume music via the internet/blogs/burned CDs/record shops -- his quote about "all the good local stores have closed" sounds like coverup for the fact that he has no idea where to buy a CD other than a Best Buy.

This makes me sad as a music industry employee, a musician and as a music fan. Also, dude sounds like a douchebag. I look forward to him repackaging Phil Collins' greatest hits for me in a new 2 CD set that'll be sold exclusively at Wal-Mart's online store.

I don't really think an outsider's perspective is the worst thing: The folks who've worked in digital music prior to this often did come up through the music business, (or at least entertainment), and their track record has been mixed at best. And the reality is, no matter how visionary and perceptive these folks are, it won't matter if they can't EMI's exec team to buy in.

Coronit (URL) said:
I agree with Alex R. and his first sentence. I think the old wisdom is true: I you take a bunch of clever people and make them work together, they will eventually solve the problem. It's the same reasoning behind VC's investing in (at first sight) bad ideas run by people with good track record.
I don't know anything about the guy, but you shouldn't judge him in advance.

Tyler said:
Corondit: I have a hard time seeing this guy fix anything in the short-term. If the last few years have proven anything, the people who are changing the music landscape have been active music consumers looking to fit the consuming habits of other music lovers. Mr. Matthias seems to work a little closer to the model of ex-Universal Music CEO Doug Morris, except exchange technical knowledge for any knowledge of music networks and modern music buying habits.

For those who forget the amazing talents of Mr. Doug Morris, I direct you here: http://www.kingsofar.com/2007/11/27/wired-interview-with-universal-music-ceo-doug-morris/

Matthias appears to be the "technologist" that Morris so desperately needs, but his lack of music buying experience seems to suggest he won't know where to apply his technical knowledge. All I'm saying is I'm not holding my breath for the music industry to figure out a way to start recouping revenue any time soon.

Tyler said:
whoops, I meant Cory, not Merritt. But the point remains the same.

insider said:
i think we're all missing an essential point - Cory Ondrejka is simply old. the wrong demographic to sort this out (and also a particularly odd character who doesn't have any real interest in music)

there's a reason hollywood hires super young folks to develop and make movies -- super young folks are the ones who buy the vast majority of tickets and influence dvd purchase decisions

ditto the music business

Cory Ondrejka is either biologically old or an old soul but in either case this is a hail mary pass by a clueless regime looking for grrovy points as a way to disguise absence of coherent strategy

Bruce Warila (URL) said:
Brilliant move.

The genre and tagging system for music is all wrong, making music discovery and manipulation a bitch.

Music needs to be mapped to things we can relate to. Detailed visuals and virtual worlds are perfect interfaces for navigating 10,000 songs. You want more sun, you move toward the sun... You have to think large flat screens and touch surfaces (of the near future). Move your hand around the landscape, change the lighting, alter the weather, and boom you just switched "genres"...

Upload a picture, create a virtual world, map your music library to colors or image fragments, everyone has a different scene etc..

Selling music is not where it's at. Perhaps EMI is going to sell the best music experience on earth? Think outside the box.



Tyler said:
Thanks, Bruce. I needed a trite business catchphrase to understand why this dude isn't going to re-market music to me in a mildly asinine, inefficient way.

djpinklady (URL) said:
I hope the dude spells better than the lot of you so I can understand the point.

djpinklady (URL) said:
I hope the dude spells better than the lot of you so I can understand the point.

John Pasmore (URL) said:
Lame. While I am happy Cory is gainfully employed it seems as if the music industry is tossing darts at resume's pinned on the wall. Granted, this may work better than everything else they've tried, but on the surface seems clueless.

If I was in HR, I would'nt hire someone who finds iTunes setup a hurdle. Remembering passwords should not be complicated. Not for this job. Granted the problem is difficult, but take a VC like Fred Wilson who is using and understanding every new widget and website to fully understand how the web works and is evolving -- that would be a better ethos than employing people who aren't passionate about the music experience...

As to the clever person post, if you took 1000 clever people and asked them to build a computer from scratch it could take longer than their lifetimes versus asking 10 engineers. Point is get people who know the space.

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wenda (URL) said:
640-802 New EMI Digital Exec: I Don't Buy Music Just what I thought. What's the rush!



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