capitol
Capitol Music Group chair and CEO Michelle Jubelirer is exiting the company, she announced in a memo to staff this morning (Feb. 6) that was obtained by Billboard. The move comes less than a week after Universal Music Group chairman/CEO announced a restructure of the label groups at the company that would shift Capitol, among other labels, under the oversight of Interscope Geffen A&M chairman/CEO John Janick.
Jubelirer, who has held her current title since December 2021, will depart the label after today.
“I am deeply saddened that I will no longer be at the company we rebuilt and took to new heights over the past two years,” she writes. “As I’ve said before, I don’t think any label group has been able to turn things around as quickly as we have managed to, and I’m certain that we’ve set Capitol Music Group on course toward a great future.”
Jubelirer joined Capitol in early 2013 as executive vp under then-CMG CEO Steve Barnett, and quickly became his second in command at the music group, which also encompassed Motown, Blue Note, Astralwerks and, until recently, indie distributor Virgin Music. In 2015 she was promoted to COO, a role she held throughout Barnett’s reign atop the label, which ended at the end of 2020. She remained on as COO under Barnett’s successor, Jeff Vaughn, who spent a short time in the top role, before Jubelirer succeeded Vaughn at the end of 2021.
A longtime attorney who also spent time at Sony Music prior to joining Capitol, Jubelirer was part of the revitalization of the storied label following UMG’s acquisition of EMI in 2012, and has been a regular on Billboard’s Women in Music and Power 100 features in the years since. Upon her appointment in 2021 to the top job, Jubelirer became the first female executive to head Capitol in its 80-plus-year history.
In 2023, Capitol racked up a 6.66% market share in the U.S., including a 5.90% current market share — which measures releases from the past 18 months — which was fifth among all labels for the full year. Both numbers were up significantly over her first year at the helm in 2022, when Capitol’s overall market share stood at 6.40% and current market share was 4.97%.
Last week, Grainge announced a restructuring of UMG’s labels, returning the company to an operational structure more similar to the one that existed from 1999 through 2014, prior to the full integration of Capitol. Under this new configuration, which is loosely an East Coast-West Coast alignment, Janick is overseeing Interscope, Geffen, Capitol, Motown, Priority, Verve and Blue Note, while Republic Records CEO Monte Lipman will oversee Republic, Def Jam, Island and Mercury.
See her letter to staff below in full:
To my Capitol Music Group Team,
I wanted you to hear this news directly from me: I’ve made the extremely difficult decision to leave the company that has been my home for more than a decade, and so, today will be my last as Chair & CEO of Capitol Music Group.
I am deeply saddened that I will no longer be at the company we rebuilt and took to new heights over the past two years. As I’ve said before, I don’t think any label group has been able to turn things around as quickly as we have managed to, and I’m certain that we’ve set Capitol Music Group on course toward a great future.
Together, we became a real team; a diverse group of individuals bonded by our love of music and passion for artistry, and whose differences in backgrounds and cultural tastes made each of us stronger advocates and champions for our artists. In such a competitive and fast-paced world, we gave it our all—every minute of every day—so that our artists could seize the opportunity to realize their dreams and ultimately succeed.
I am so fortunate to work in a business that I love and be constantly surrounded by music and the talented people that create it. Every day, I renewed my promise to do my very best for our artists, and they have given me so much in return. No matter where I find myself in this business, I will always approach my relationships with artists as their advocate, their protector, and their fan.
I will let you know of my future plans as soon as I can.
In closing, let me simply say to each of you: Thank You. It has been my honor to be on this journey with you.
With love and appreciation,
Michelle
Staff at Motown Records were hit with news of layoffs Thursday (Feb. 16) as the label gets reintegrated under the Capitol Music Group (CMG) umbrella, multiple sources tell Billboard. The number of people and departments affected are unknown as of press time.
A spokesperson for Motown Records confirmed the layoffs to Billboard. “As Motown returns to the Capitol family, certain positions that had been created when we became a stand-alone label have since become duplicative,” the person said in a statement. “These employees are leaving the company and our People, Inclusion and Culture department is helping them find new opportunities — either within or outside of UMG.”
Layoffs were feared by staffers since chairwoman/CEO Ethiopia Habtemariam’s sudden announcement of her departure on Nov. 29, at which point the future of Motown — which had been spun out of the Capitol Music Group into a standalone label in March 2021, with Habtemariam promoted to the top title — was unclear. In the weeks that followed, it emerged that Motown would be consolidated once again into CMG, at which point the prospect of layoffs loomed.
Motown had been under the CMG umbrella since 2014 when Universal Music Group (UMG) dissolved the Island Def Jam Music Group and moved Motown to Los Angeles to operate out of the Capitol Tower. Habtemariam, who had been president of Motown since that year, oversaw the shift from New York to L.A. and in 2015 led the signing of Motown’s landmark partnership with Atlanta-based Quality Control, which brought Migos, Lil Baby, Lil Yachty, City Girls and others to the label. That led to a surge in interest, signings and market share for Motown, resulting in the establishment of the label as a standalone frontline in 2021, with Habtemariam given the chairman/CEO title.
However, just 20 months after assuming that role, Habtemariam announced she was leaving UMG entirely to “pursue new endeavors,” departing a label that had been energized in recent years without a clear leader. As a standalone label, Motown maintained its own A&R and marketing departments, though it shared services such as radio promotion with Capitol.
CMG is run by Michelle Jubelirer, who was promoted from COO to chair/CEO in December 2021, succeeding Jeff Vaughn, who lasted just a year in the role. Jubelirer oversees a record group that also encompasses Blue Note, Astralwerks and Capitol Christian Music Group, in addition to Motown. While its market share remains under CMG, in September indie distributor Virgin was consolidated alongside Ingrooves and mTheory into the Virgin Music Group, whose co-CEOs report directly to UMG chairman/CEO Lucian Grainge.
However, Capitol will not have Quality Control in its purview moving forward, as the label was sold to HYBE America in a deal that was announced Feb. 8. That means that while Capitol will oversee Motown, it will not have any future releases from some of Motown’s biggest stars of the past decade.
Motown is the latest music company to undergo layoffs in recent months, as the global economy’s outlook remains uncertain. The tech sector was hit particularly hard in that respect, with Amazon, Google/YouTube, Spotify, Twitter, SoundCloud, BMI and others shedding jobs; many cited the dwindling advertising market, which has stubbornly retracted. In October, Grainge himself addressed the advertising market’s downturn when speaking about UMG’s third quarter financials, noting that ad-supported streaming revenue grew slower than expected, up just 5.2% over the third quarter period of 2021, though it was offset by increases in other sectors such as subscription, licensing, tour merchandising and publishing.
In 2022, Motown had raised its overall market share to 0.97%, up from 0.90% in 2021. In terms of current market share — music released over the most recent 18 months — Motown grew its share from 1.18% in 2021 to 1.33% in 2022. It had remained part of Capitol’s market share during that period, despite its ostensible status as a standalone entity. Capitol’s overall market share declined from 6.81% in 2021 to 6.40% in 2022, while its current share dropped from 5.64% in 2021 to 4.97% in 2022.
Additional reporting by Gail Mitchell.
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