Thursday 27 May 2010

Who is Mo Ostin, and how did he shape the music industry?

What do
Frank Sinatra, Jimi Hendrix, the Sex Pistols, and the Red Hot Chili Peppers have in common? The
answer is Mo Ostin, arguably the most powerful record executive in the history of the music
industry.

Ostin began his career at Warner Brothers Records, where he served
as the companys Chief Executive Officer for twenty-five of the thirty-one years he worked there.
In 1994, to the astonishment of many, Ostin parted ways with the company (that is now called
Time Warner) to accept a position at Dream Works SKG, the company founded by media moguls
Stephen Spielberg, Jeffrey Katzenberg, and David Geffen. Ostin was attractive to Dream Works not
only for the success he had enjoyed at Time Warner, but also for his reputation for taking risks
on artists who paid off. He is well-known for developing positive relationships with artists,
encouraging their creativity and earning their trust.

Mo Ostin was born
Morris Meyer Ostrofsy. His parents were Russian. They immigrated to the United States in 1917 at
the height of the Communist revolution in their homeland. They settled in New York City, where
Mo (nee Morris Meyer Ostrofsky) was born in 1927. However, in 1930, when Mo was thirteen, the
family moved to Los Angeles, where his parents opened a small produce store. Mo likely became
interested in the music industry thanks to his next door neighbor. The neighbor was the brother
of Norman Granz, owner of Clef Records. Granz was a well-known jazz concert promoter.


Ostin attended UCLA and majored in economics, and shortly after graduating, entered the
music business. He decided his birth name was too difficult to remember and changed it to Mo
Ostin. He began traveling with Norman Granz, where his job was to sell concert programs at a
cost of twenty-five cents each. Although he went back to college to attend law school, he
dropped out in 1954, as the commitment was too great. By this time, Ostin had a wife and child
to support.

Instead of completing a law degree, Ostin took a job at Clef
Records as their controller. The line-up of artists during those years included the jazz legends
Charlie Parker, Duke Ellington, and Count Basie. However, even working with great artists such
as these, Ostin still felt he lacked direction. He was only working, he felt, to support his
family. He had yet to find his passion.

Things changed for Ostin in the late
1950s when the beloved crooner Frank Sinata formed his own company, Reprise Records. He asked
Ostin to come with him, and Ostin agreed. (Note: Sinatra had earlier attempted to buy Clef (by
this time called Verve Records) but was unsuccessful. Verve later was purchased by MGM
Records.)

At Reprise, Ostin found his calling. His commitment to was to the
artists; this was far from the case at many, if not most, record labels. In a rare interview
Ostin granted to the Los Angeles Times Calendar, Ostin explained the
companys philosophy, which he helped develop: Frank's whole idea was to create an environment
which both artistically and economically would be more attractive for the artist than anybody
else had to offer. That wasn't how it was anywhere else. You had financial guys, lawyers,
marketing guys. Their priorities may not have been the music. One of the great things about
Warners, I always felt, was our emphasis and priority was always about the
music."

Despite the goodwill towards artist, Sinatras blindspot was his
adamant refusal to sign any rock and roll artists. This lack of progression contributed to the
eventual demise of the label in 1963. Reprise was sold to Warner Brothers in 1964. Ostin
returned, with the understanding that he was to be free to sign rock acts. Among the first
soon-to-be stars he signed was the British rock band, The Kinks. By the end of 1965, The Kinks
produced six singles which hit the Top 40.Ostins success with The Kinks made him more confident
in risk-taking. He then signed the legendary rock guitarist and vocalist Jimi Hendrix and his
band, The Jimi Hendrix Experience.

In 1972, Ostin was
named president of the Warner Brothers/Reprise division. Two years later, he was promoted to
Chairman and Chief Executive Officer, where he would remain for the next twenty year.  During
this time, Ostin focused on outdistancing the industry leader, Columbia Records (now Sony). By
the end of the 1970s, he achieved his goal. There were several moves that contributed to Ostins,
and Warner Brothers/Reprises success: the company launched its own distribution systems and
pressing plant; they also went international. Ostin kept the labels acts fresh too. When rock
and roll began to experience a decline in popularity, Ostin signed country, rap, dance, punk,
and heavy metal bands. The eclectic artists included Miles Davis, Madonna, the Talking Heads,
Black Sabbath, Emmylou Harris, James Taylor, and Fleetwood Mac.

Ostins long
run as CEO of Warner Brothers came to an end during his contract negotiations in 1993. The
conflict was primarily with Warner Music Group chairman, Robert Morgado. Morgado insisted the
Ostin report to him. Ostin refused to give up his autonomy. He also intensely dislike Morgados
slash-and-burn techniques regarding both artists and company staff. In the wake of Ostins
departure, many others at Warner resigned. Band who trusted Ostin left Warner as soon as their
contracts allowed them to do so. The mass exodus nearly paralyzed the once seemingly-unstoppable
company.

Ostin moved to Dream Works in 1994. In 2003, he was inducted into
the Rock and Roll Hall of Fame by Paul Simon, Neil Young, and Lorne
Michaels.

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