22 Music Week 01.02.13 VIEWPOINT EXPERIENCED EXECS


DON’T LEAVE OUR INDUSTRY VETERANS OUT TO PASTURE


With decades of music business experience at the highest level behind him, one industry exec puts forward the case as to why seasoned trade professionals still have so much to offer


EXECUTIVES  BY STEVE LEWIS, FOUNDER, STAGE THREE


I


saw Mick Jagger sing, “What can a poor boy do except to sing for a rock and roll


band?” at the Stones’ free concert in Hyde Park in 1969 and again at their recent O2 concert. In the interim, the Stones have accumulated a


stellar catalogue of songs and honed their performances of it to perfection. Reading the ecstatic reviews of the O2 concert, I


thought, “You deserve these reviews, Mick. You earned them. You even referred to what we, the audience, paid you. You know your value and so do we.” But what about executives who’ve enjoyed


lengthy careers? Is their experience valued and being put to good use? I met Richard Branson and joined Virgin in


1969, before the Virgin label or shops existed, when it only sold vinyl albums by mail order. I stayed until 1992 when EMI paid £560m for Virgin Music (Publishers), where I was MD, and the Virgin Records label, where I’d previously been deputy MD. Being a senior member of the executive team did no more than ensure I received a nice cheque as I was shown the door. The Stones, blues fans without original material,


began by performing covers. I’d joined Virgin as an enthusiast with no repertoire of my own either. By the time I left I’d created the beginnings of one. The Stones rolled on, perfecting their craft and


broadening their repertoire by experimenting with psychedelia, disco and other styles. I went on to join the main board of Stock Exchange quoted Chrysalis Group Plc, as CEO of the Music Division. I met brokers, analysts, institutional investors and corporate lawyers, gaining valuable knowledge and contributing to the development of Chrysalis’ successful radio and TV production businesses. Like the Stones, I learned new licks. After eight years, I took a sabbatical which coincided with the first series of Pop Idol. The talents I admired and wanted to work with were the songwriters and producers, not the karaoke singers on the screen. I sketched the outline of a business plan for a publishing company that would sign great songwriters, acquire underexploited catalogues and be relevant in a changing media environment. Howard Jones, my solicitor and advisor of 30


years, suggested I show it to Patrick McKenna at Ingenious. Patrick, who had advised me when I left Virgin ten years earlier, understood the business model immediately. He knocked my plan into shape, invested the capital necessary to found Stage Three Music and


“Just as the Stones invented the stadium touring model, my generation created the modern music industry”


subsequently orchestrated a second round of funding, enabling us to make larger acquisitions. How precious those relationships proved to be.


Without them I doubt I’d have established the company or acquired contacts in and an understanding of the world of private equity investment, media banking and corporate finance. I broadened my repertoire, as the Stones had when they made albums with new producers and experimented with styles and guest musicians. The Stones’ 50th anniversary shows launched


Virgin Live, Richard’s concert promotion company. Surely it’s in part due to trust built during their longstanding relationship rather than simply hard cash. Stage Three’s successful business model was copied by other private equity backed publishers and in 2010 we sold to KKR/BMG Rights. I left soon afterwards. Again, the cheque was nice but what is this poor boy to do now? Just as the Stones invented the stadium touring


model, my generation created the modern music industry. Sadly, as the industry continues to consolidate, seasoned executives are being lost to it,


even though many still have much to offer. Its essential reinvention will be led by technologically savvy operators and outsiders with disruptive business models. But as the Stones prove, there will be advantages for those who tap into the experience, relationships and repertoire acquired over decades by industry veterans. Since the sale of Stage Three, I’ve regularly been asked for introductions, help and advice. Despite dropping out of university myself, I have, among other things, become External Advisor to the University of East London’s music industry management BA course and been retained as an expert witness in the divorce of a major songwriter. My experience and contacts might be helpful to others as well as myself so I’ve set up a website, www.stevelewisservices.com, where people who don’t know me personally can find me. It’s great to remain involved in the industry


I love and that has nourished me for so long. And to still feel useful, albeit in different and unexpected ways. I know Mick would agree. Other than Carla Bruni, we have so much in common, I sometimes think we’re twins, separated at birth.


 Steve Lewis is founder/CEO of Stage Three Music and owns Steve Lewis Services (www.stevelewisservices.com)


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