Amid Clouds Of Scandal, The Record Business Is Flying High At Grammys

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As the music industry descends upon the Stapes Center to celebrate the Grammys, a scandal involving an ousted CEO, accusations of vote fixing and allegations of rape hangs over the Recording Academy. From a business perspective, the stakes haven't been higher since music's pre-Napster heyday.

that total to $131 billion more recently. “We forecast that streaming will increase [major label] revenue pool by $21 billion by 2030 and profit pool by $7 billion.”

Meanwhile, headlines peppered with words like “misconduct,” “corruption,” “chaos” and even “rape” are forcing people to at least pay attention. Earlier yesterday, five miles east from Davis’s event, UMG head Lucian Grainge hosted his own celebration at Milk Studios in Hollywood. Billed as an annual artist showcase, the event drew a packed crowd of about 400 guests who were greeted by a row of servers offering up hor'dourves and designer drinks.

The Academy’s Task Force on Diversity and Inclusion issued an immediate statement expressing shock and dismay at Dugan’s allegations, and called on the organization to make the changes it recommended in a“without delay.” Tina Tchen, the former chief of staff to First Lady Michelle Obama who led the task force, declined to say more. No sponsors have publicly withdrawn their participation.

 

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