From Elton to Axl

In 1970, David Geffen set up Asylum Records, a label that many notable names of the decade would call home. Legendary for his ability to discover and sign talent, Geffen picked up such acts as Joni Mitchell; Crosby, Stills and Nash; and Neil Young. In 1980, after selling Asylum to Elektra, he launched his eponymous label. Over the next decade, Geffen Records signed highly successful acts including Guns N' Roses, Elton John, Don Henley, Whitesnake, and Aerosmith. Geffen won high praise from artists and executives alike for its dedication to its artists and their careers. Acquired by MCA in 1990 (a subsidiary of Universal), the label enjoyed continued success in the early 1990s, with acts like Sonic Youth, Nirvana, and Veruca Salt.

In 1994, the label accounted for more than a quarter of the total global revenue of Universal's music division. But sales began to falter soon after Seagram acquired Universal in 1995. After two years of poor sales, the label initiated a massive restructuring in May 1997, cutting more than 10% of its employees. Though it still represented successful artists such as the Counting Crows, Beck, and Hole, Geffen was slowly losing autonomy to its more earnings-oriented parent company. Furthermore, the label found it hard to lure new artists.

Downward spiral

A much more vicious reorganization came for Geffen in January 1999. As part of an overhaul of its entire music group, Seagram laid off 110 Geffen records employees and began a long, involved evaluation process for its artists. Acts whose record sales were not up to par were resolutely dropped. Geffen and A&M records have since been folded into Interscope Records to form a new label called IGA. Not surprisingly, Seagram CEO Edgar Bronfman has been lambasted for buying up and doing away with these and other long and storied labels (including Motown and Island Records). However, some industry insiders insist that the demise of the music industry machine was inevitable.

Time for cleaning house

Up-and-coming musicians, tired of being under-marketed by risk-averse, star-driven labels, are turning to smaller independent labels. And increasingly, some are choosing to market themselves. Chances are Bronfman will realize that that one can't always apply big-business rules to the creative process.

Soon to be Beck-less

Meanwhile, Geffen Records has another major problem on its hands. The Grammy Award-winning artist Beck has threatened to leave the label after trying and failing to re-work his contract. In April 1999, Geffen filed a suit for breach of contract against the artist. Less than a month later, Beck filed a copyright-infringement suit agains the label, claiming that Geffen illegally took control of his album, Mutuations, and has yet to pay any royalties for the 400,000+ albums sold since it was released in November 1998.

More legal issues