FMR-RIP
By Melanie Selby, NZ Musician December/January 2006 (Vol:12, No:6)
On Friday October 18 the dozen or so Auckland staff of FMR (Festival Mushroom Records) were given some particularly bad news - the business had been sold. A change of ownership had been in the wind for some time as the Rupert Murdoch-owned News Ltd had made it clear they were looking to divest. The international, though mainly Australasian business, was actively put on the market earlier this year.
The recent departure of FMR NZ's MD Mark Ashbridge, shortly followed by that of his former boss Michael Parisi, the MD of FMR Australasia, both to roles within Warner Music Australia, had provided a broad hint of what was to come.
Parisi moved into the role of President of A&R while our own 'Ash' is now VP of Marketing at WMA. Both claim no insider knowledge that their old business would be following them to its new home, as fortuitous as it has obviously proven. Indeed rumours of just who would be buying FMR and when were still very active earlier in the sale week - both V2 and EMI were apparently interested.
It was Warner Music Australasia, a letterhead blend of WMA and WMNZ, both subsidiaries of Warner Music International, who came to the party. Reports put the deal as worth anywhere between A$5 million and A$10M.
A little over a week after the sale was announced all but two of the 12 staff at FMR in Auckland were advised they would be losing their jobs. Another three weeks later, on November 25, the offices and warehouse in Freemans Bay, Auckland were closed up permanently. This black Friday was fittingly preceded by the last ever FMR party.
The days of major record company boardroom bashes largely passed with the turn of the millennium, but FMR parties had remained frequent and of legendary proportions - alcohol-fuelled industry get togethers with fabulous bands playing. The final farewell was no different in that regard. The D4 blazed out a fine warehouse set, joined for a song or three by Flying Nun-era rep Shayne Carter. There was however an air of sadness about the evening, sadness about considerably more than the loss of such a fine party venue.
Festival Mushroom Records was formed by News Ltd from the amalgamation of the operations of Festival Records Pty Ltd, Mushroom Records Pty Ltd and Mushroom Distribution Services (MDS). Festival Records has been operating in Australia and NZ since 1952 and has been part of News Ltd since 1961. News Ltd bought Michael Gudinski's hugely successful Mushroom Records in two bites, half in the early nineties and the remainder at the end of the decade. The Melbourne-based Mushroom Records had earlier become Festival's de facto A&R department.
Established here in 2000 FMR held a unique place as neither a major nor a minor. As a major record company it enjoyed access to budgets and a seat on the RIANZ board, but as an independent it was prepared to take a punt on alternative music and specifically was the home to Flying Nun. The local roster FMR represented included Scribe, King Kapisi, The Phoenix Foundation and 48May.
The Flying Nun label itself lists The D4 and the Mint Chicks among its current acts and of course houses the most active back catalogue of any Kiwi independent label. Ironically, Warner Music, have had the smallest NZ roster of what is left of the majors. Direct signings to Warner NZ include only The Feelers and Anika Moa, while the Australasian arm has secured our Shihad. Evermore enjoy a deal with both NZ and Australia separately.
Which begs the question, just what is going to happen to the less mass-marketable FMR artists like The Shocking Pinks and Tha Feelstyle?
MD of Warner Music NZ Jerry Lloyd said he can't see why any changes would occur in the current roster, although he says, "... nature will take its course over time".
"Indie bands are very important and have a valued place in New Zealand music, we're an indie record company, albeit a big one!"
Speaking only a few days after the take over he was unwilling to divulge the plans for Flying Nun except to say that they were "pretty exciting". Lloyd said he hopes to continue distributing Dirty Records releases as FMR had been. "I have met with Callum and Pete and what excites me about them is their passion and ear for music as well as their business nous, it's exciting."
Inevitably there will be bands who are dropped when their contracts come up for review and this could potentially be a boost for the local independent sector. Arch Hill's Ben Howe believes the sale is likely to be good for the indies because it opens up space for middle-sized businesses to develop.
"Independent labels in NZ (and worldwide) are really thriving at the moment and are willing to back most of the best and most interesting music. The majors are struggling and really only interested in doing artists that sell large volumes of albums - consequently they are being very conservative in the kinds of music they release. Most people saw FMR as a mini-major label, and now they are gone that creates an opportunity for some indies to continue to grow into biggie indies," says Howe.
Lachie Rutherford, President of Warner Music Asia Pacific also expressed confidence that the indie bands will be held as equally important in the changeover.
"Mark Ashbridge and Michael Parisi are great creative music executives and the talented roster and key staff will add to Warner Music's presence, and will create a new business with one foot firmly in the major part of the business, but with the other foot firmly planted in the indie arena."
There's also the question of how Warner Music NZ will cope with the suddenly increased roster but not so increased staffing levels. Warner itself suffered heavy staff cuts, including former MD James Southgate just under two years ago, when eight were asked to empty their desks on the same day.
There has been some re-structuring necessary at the subsequently down-sized Ponsonby offices in order to accommodate the FMR staffers who have been kept on.
Ashley Page who was FMR's A&R Manager has assumed the same role, now being responsible for all domestic artists signed to Warner Music and Festival Mushroom. Dorothy Power, who was Label Manager at FMR, steps into the role of Publicity and Promotions Manager with responsibility for the combined domestic roster and television.
A third former FMR employee, Charlotte Ryan, has landed a newly created role titled New Media and Strategic Marketing Manager.
FMR's GM of Operations and Finance Darryl Parker has been contracted to stay on for two to three months to help with the transition.
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