Universal Oz Makes Changes

The appointment of George Ash as new managing director of Universal Music Australia (Billboard Bulletin, June 19) reflects the company's desire to raise its profile and market share in the Australian market.

Ash, currently Universal Music New Zealand managing director, takes up his new post July 1. He will report to Sydney-based Peter Bond, chairman of Universal Music Australia and Universal Music International regional president for Australia/New Zealand/Africa. Ash replaces Paul Krige, who left the company in May (Billboard Bulletin, May 3).

Latest figures from labels body the Australian Record Industry Assn. show Sony and Universal running neck and neck for pole position in the local market, with Sony at a 22% market share and Universal at 21.3%. Bond says he wants to raise Universal's share to at least 25%.

One reason for Sony's lead is that its Australian roster accounts for 22% of its business, according to the label. In comparison, Universal's dozen domestic acts constitute 10% of sales, and Powderfinger releases make up most of those. The band has shifted 430,000 copies of its current album Odyssey Number Five (Grudge/Universal) in Australia. Bond says one challenge for Universal Australia is that "we are seen primarily as a rock label, and it's a perception we want to change."

In New Zealand, Universal is the clear market leader, with a 28% share. Ash knows the market well: Having worked at retail, then at BMG New Zealand, he set up MCA Records in New Zealand in October 1995.

Sean Coleman, managing director of 51-store New Zealand music retail chain Sounds, which claims a market share of 23%-25%, describes Ash as "very much a music person." He adds, "George understands that you have got to sell new music, otherwise you don't get old music. He's a very good team player. He appreciates—perhaps more so than some of the other MDs—the value of music-specific retail."

Zed manager Ray Columbus says Ash pulled the New Zealand company into a harmonious, tight unit. "With their hard work and enthusiasm it's been like dealing with a fired-up little independent in many ways."

Ash's replacement is New Zealander Adam Holt, who from 1997 to 1999 was managing director of Polydor Australia. More recently, Holt headed the New Zealand operations of Australian music publisher Mana Music. "He's a music person with a great pair of ears," says Paul Dickson, Sydney-based director at Festival Mushroom Records, who worked with Holt when Dickson was PolyGram Australia managing director.

Bond says, "Adam's strength as a music person brings a continuity to the New Zealand company and builds upon our strong position there."



This story was prepared by Christie Eleizer in Melbourne, Australia, and David McNickel in Auckland, New Zealand.