Telecom Musical Chairs: Regulators And Lobbyists Swap Roles, Everyone Wins! (Except The Public)

from the musical-chairs-without-a-chair-being-taken-away dept

We've talked plenty about the big revolving door between government and big business lately, but there are still some moments that are purely insane that show just how broken the system is. On Wednesday, news broke that former FCC commissioner Meredith Attwell Baker has been named the new CEO of CTIA, the main lobbying organization for mobile phone operators. Baker is no stranger to questionable revolving door moves, seeing as just months after she voted to approve Comcast's merger with NBC Universal, she took a top lobbying job with Comcast. Funny how that works.

But, in this case, it's even more ridiculous because, as Jon Brodkin points out, the current head of the FCC, Tom Wheeler, previously was CEO of CTIA as well. And prior to that he was CEO of NCTA (the cable industry's main lobbying group). And, to top it off, the current head of CTIA is none other than former FCC chair Michael Powell.

If you're keeping score at home, it looks like this:

• Michael Powell: FCC Chair -> NCTA boss
• Meredith Atwell Baker: FCC Commissioner -> Comcast -> CTIA boss
• Tom Wheeler: NCTA boss -> CTIA boss -> FCC Chair

They're playing a game of musical chairs where no chair is ever removed... and they all get fabulously wealthy scratching each others' backs. Even if everyone is being completely sincere in their positions (a big if, but let's assume it for now), the real problem here, again, is that the perception of rampant corruption is encouraged by this sort of thing, leading the public to seriously distrust the government. When the top two lobbying organizations on these issues are manned by former top officials and the current top FCC official used to run both those organizations, there's a pretty clear implication that it's the public interest that's going to get shafted.

Filed Under: fcc, lobbyists, meredith atwell baker, michael powell, musical chairs, revolving door, tom wheeler
Companies: ctia, ncta

Musical Chairs At The Major Record Labels

from the down-with-the-ship dept

The one thing that the major record labels could really use at this point is an injection of new blood from folks who actually understand technology and where the market is headed. There are a few such folks out there, but they seem few and far between. Instead, it appears that the major labels are simply playing musical chairs at the top. Hypebot has this rather ridiculous report of some ongoing shifts among major label management:

At the same time, Doug Morris, out as Universal Music's CEO, but still its figurehead chairman until the end of 2011, is negotiating an early release so that he can run Sony when CEO Rolf Schmidt-Holtz's tenure ends in April. Along with Morris some of his top lieutenants could reportedly jump ship as well.

If that weren't change enough, Barry Weiss, recent chief of Sony’s RCA/Jive, is talking to Universal Music where he would oversee Universal Motown Republic Group and Island Def Jam. Who is being tapped to replace Weiss at Sony? Strong rumors have the job going to Tom Whalley, who was recently forced out at Warners.

Doug Morris, of course, is the guy who publicly announced to the world that he was too clueless to understand modern technology or business models. Actually, he admitted he was so clueless he didn't even know enough to hire people who could help him. And he still kept his job after that. I still can't quite fathom how any board of directors allows such a CEO to remain in place. And I'm curious as to what Sony is thinking in now hiring someone who has publicly said that he's completely unprepared to deal with the modern challenges of the market. But, of course, since all of these execs are simply swapping seats, it's just an insider's club where they pat each other on the back as the companies they lead continue to fail to adapt.

Filed Under: management, musical chairs, record labels
Companies: sony music, universal music, warner music