Private Equity Blues: Warner Music Group, Nonesuch Records, and Jazz in the Era of Financialization

AbstractSince the 1980s, the Nonesuch label, a longstanding subsidiary of the Warner Music Group (WMG), has become noteworthy for its steady market performance during a period of volatility for media multinationals. Nonesuch Records, having once been an adventurous boutique classical label under Teresa Sterne, has developed over the last three decades as a creatively idiosyncratic and commercially successful “adult” imprint under Robert Hurwitz, the erstwhile director of the Munich-based Edition of Contemporary Music jazz label.Nonesuch has not historically been understood as a jazz label, though it has served as a home for a few jazz acts, including Bill Frisell, Fred Hersch, and the World Saxophone Quartet. By the early years of the new millennium, though, Nonesuch had become one of the few major label subsidiaries willing to maintain an active roster of jazz instrumentalists, harnessing its diversified roster as a source of strength.This paper examines the Nonesuch label's cultivation of a distinctive jazz niche and situates this development against the backdrop of a period of structural turbulence for the WMG. The leveraged buyout of WMG in 2004, which precipitated the dissolution of the Warner Jazz subsidiary and the transfer of much of its jazz roster to Nonesuch, reflects a contemporary logic of financialization, where value extraction has become the overriding goal of corporate restructuring. Mergers and acquisitions enacted at the uppermost reaches of major label corporate hierarchies pass along significant costs to the label subsidiaries and their artist rosters, installing precarity at the core of the music industry's creative ecologies.