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16 Nov. 2023 AIHosted by
Jenelle McMaster
In business you're either driving change or on the receiving end of someone else’s.
In this podcast series Jenelle McMaster digs deep into the mindset of leaders and individuals who harness the transformative power of change to unleash the new, the next and the unthinkable.
Through story and conversation we'll uncover unique ideas and insights to help you become the type of leader who makes sure change happens.
Alice Min Soo Chun
Co-founder & CEO | Solight Design
Present: | Alice Chun, Jenelle McMaster |
Date: | 22 October 2024 |
Dan Rosen
President | Warner Music Australasia
Present: | Dan Rosen, Jenelle McMaster |
Date: | 24 September 2024 |
Jenelle | At the state of his career, Dan Rosen couldn’t choose between his two loves and so for a while he lived a double life. He worked as a lawyer by day and performed music gigs by night. Except what he once saw as being competing interests was actually what made him the perfect candidate for his CEO roles in the very industry he was so passionate about. This lawyer and musician went on to become the CEO of ARIA for 10 years and then the President of Warner Music Australasia. This is a fascinating deep dive on an industry that has gone through seismic changes. |
Previous audio from Dan | “Napster has changed everything”. “In a 48 hour period of 1.4 million free downloads.” “You don’t think this is stealing?” “Not at all”. “This is robbery this will kill the music industry”. “You will all be sorry.” |
Jenelle | Dan talks about the music industry being the ‘canary in the coal mine’ when it comes to digital changes. Whether it’s shifting business models, streaming platform challenges and opportunities, the impact of Covid on live performances and the music industry at large – it’s been a lot and Dan has been right a part of it all. I want to start by quoting the first line of an article written in The Australian in July 2022 and it read “Presented with a fork in the path, one way leading to stardom and one to the top echelons of academia, the President of Warner Music Group Australasia chose both.” So I love that headline! So wondering if you can bring some colour to that? What was the start of the piece all about? What was the academia offer? And how did you find yourself at this particular fork in the road? |
Dan | It was interesting I was asked to go back to Monash University where I graduated Law and Commerce degrees and I was asked to give the speech to the graduates and it was a good moment to reflect on how did a world graduate from Monash University end up running a record label. Came back to that fork in the road where in one week, 21 years ago, 2003 I won a Fulbright Scholarship to go do my Masters of Law at the beginning of the week and ended the week winning Triple J Unearthed with my band ‘Second Dan’. I think it was a pretty good week! Even my Mum was proud of me that week! |
Jenelle | Don’t you love that when Mum’s are finally proud of what we do! |
Dan | Yeh, yeh, yeh! |
Jenelle | But how does that happen? So I’m loving this topping tale of the week with these unbelievable offers on the table. So what inspired you to apply for a Fulbright Scholarship? And, for a music competition all at the same time? |
Dan | Yeh I think I was working in Canberra at the time as a Ministerial Advisor and you are surrounded by a lot of very smart people who are all trying to convince me that, that was a good path to take. I always enjoyed study. It was something that I did well. I enjoyed both my Commerce degree, my Law degree and the more I got into it I thought the ability to go to the States would be an amazing opportunity. It felt like the path to take. I think the more random path was that I was still spending my nights changing out of a suit and putting on a black t-shirt and going and playing in an indie rock bands around Melbourne, Canberra and Sydney. So I think I spent a lot of my 20 years where people during the day didn’t know what I did at night, and people at night didn’t really know what I did during the day. There was a few people who knew. Whether I was Clark Kent turning into Superman, I don’t know which was the day, which was the night! That’s what it felt like. A lot of changing clothes in my car running between work and gigs. I think winning Triple J Unearthed felt much more of a long shot than winning the Fulbright as crazy as that might sound. |
Jenelle | So there you are in this magical week with two offers on the table. We obviously know the spoiler alert is that you took both. How did you make that decision? What gave you the confidence that you could do both? |
Dan | I went over to the US and went to all the universities that you could go to and thought hang on a second I can live downtown New York, close to all the places you can play shows and go to a top 5 law school at the same time. That sounded like a pretty good event. I usually have a motto that nothing happens if you stay home. So after school dark. |
Jenelle | Oh.. it would have been tough during Covid for sure. |
Dan | I must say there were times where even myself it felt ridiculous or it felt overwhelming or it felt like you’re down a very dark tunnel and you can’t really see the light at the end of it. I think there was a quote that I’ve used before by Steve Jobs “You can only connect the dots in reverse.” So it’s only when you get to the end of it where you’re like ‘Oh well all those things that I did and were interested in actually came together a bit further down the path and I was able to bring them together.’ But whilst you’re doing them it does feel very disparate. |
Jenelle | Well maybe I’ll just pick up on that idea in itself. You know, connecting the dots in reverse. What would be one of those moments? Why am I doing this that did come to crystalise for you later? |
Dan | It was only when I was called by a recruiter from the ARIA to come back and be CEO of ARIA which is the peak body for the music business in Australia when I started reading the job description I was like hang on a second this is a job that needs policy (cause it’s all about influencing Government). There is a lot of legal understanding cause you are bringing court cases against people who are breaching copyright. The industry is going through massive disruption because of technology. Last you are dealing with record labels and artists so an understanding of the music industry is fundamental. So that was the moment I had this lightbulb moment, I’m like “Holy Hell!” I reckon I’ve got all of these experiences. Even though I was quite young. I was living in New York so you’ve got a little bit more attitude I was like “I reckon I’m half a chance for this!” |
Jenelle | I love that by the way and I love the hoodster that comes from all of those experiences. |
Dan | Definitely I think that’s the big change in New York. When you’re Australian we told to kind of just be humble which is amazing and don’t really big note yourself. Whereas in America, particularly in New York, if you don’t tell people what you’ve done they’re not going to believe it. So, you’ve actually got to really get out there and prove yourself and talk yourself up a little bit more. I think when you get back to Australia you’ve got to tone that down just a little bit, so you don’t look to arrogant. |
Jenelle | I understand that! If I think about all of the things that you’ve done it sort of raises for me the question of identity or how you identify, cause there is many descriptors that I’ve seen of you – musician, popstar, CEO, Fulbright Scholar, father, lawyer. What resonates most for you? How do you describe yourself? |
Dan | It’s a great question. I mean at the moment probably husband and father would be my, probably how I would – my most important role and exciting role. Other than that I just think somebody – I think my motto really is to try to leave organisations or places in better shape than I found it. I’m only half way through so I’ve got another 50 years I might be able to add a few more descriptors to that. |
Jenelle | I love that! So think about things where you’ve left it better than when you found it and noting that this is a podcast that’s called ‘Change Happens’. So interested in the concept of change and what you drive. So during your time as a lawyer you were at the forefront. I can pick all sorts of examples. But advocating against piracy, and you were one of the biggest proponents of getting legislation passed. That legislation went into effect back in 2015 and allowed for the blocking of illegal pirating websites. Reflecting on that time, and again legacy – leaving something better than when you found it, what did you learn about driving change that you then took forward into your subsequent endeavours? |
Dan | That was when I was at ARIA as their CEO. I joined ARIA at the beginning of 2011 and the recording industry – when Napster came in 1999 and the recording industry halved it’s value between 1999 and 2013. I remember when I was interviewing for the job the Board said to me “Why do you want to take this job?” “The music/record industry is dying”. “Everybody says it’s a failing business.” I remember at the time saying “Well, we don’t have a problem with demand”. “People love music”. You walk in. I was in New York. You walk down Washington Square Park and there is a busker playing, and a kid stops and dances. That’s not a learned behaviour. That’s an innate behaviour that people love music. So, we don’t have a demand problem, we have a business model problem and we have to back ourselves to solve that business model. So when I started at ARIA, I think the scene was dual. We need to make it easier as an industry for people to do the right thing, therefore we need to embrace digital, invest in the right business models. But we also need to make it harder for people to do the wrong thing. We can’t do that on our own. That was only something the Government could do to put some costs on the pirate sites. The music industry is like the canary in the coal mine. We were the first industry really to get disrupted by digital technology because a music file is relatively small, so you could share it over narrow band pipes and has broadband came more and more common – we knew you were going to start sharing TV, movies, sport and the like. So, what I started to do was build a coalition of people from news industry, film industry, sports industry to be able to say “Listen this is at the music industry first, it’s coming for you too.” “I’ll show you a graph which shows you where the music record industry revenues goes”. “If you don’t want to follow us down that downhill slope, let’s go to speak to the Government about it.” And, at the time I remember coming in and they were saying “No Dan, you’re just pretending that the world hasn’t changed and you have to embrace digital.” I’m like, “No, no, we understand the world has changed but if we don’t put some parameters around this, our industries are going to continue to lose money.” “For us to invest in new business models we need the illegal business models to be chucked out.” And it took a few years, but we were able to convince them of that. And, now the music industry, record industry has turned around and digital accounts for 85% to 90% of the business and bigger than what it was back in 1999. We’ve seen the same happen in the sporting codes. They’re all embracing digital but had that not of happened, I think it would have been a very, very different circumstance. |
Jenelle | First of all, congratulations it’s a massive amount of change by affecting that area then. You then went on to President of Warner Music Australasia and more broadly in the music industry you have been having to navigate some really tricky situations – some seismic shifts. You talked about the digital transformation. The different business models. But also we had the pandemic in there which was crippling to the music industry in terms of live music. Would have had a huge impact on a particular generation who missed out on that. Talk to me about what that was like navigating that change. How you led through that? What kinds of changes you were and have been and continue to drive in the industry. |
Dan | Yeh it was obviously an incredibly difficult time for so many people in Australia and around the world. I was still at ARIA at the time when the pandemic hit and I remember coming home one day and thinking to myself I live – at the time I had a house with a home office. I had a family that I liked and a job that I wasn’t going to lose. And I thought there I am and I was super stressed and thinking to myself well I have those three things and I knew that a huge amount of people in our industry didn’t have any of those three. We knew that mental health was already fragile in the creative industries so that was going to be a huge issue and then also we knew that basically people’s livelihood is going to be decimated. I was fortunate at the time to have relationships that I’d developed with the Government at the time we were able to get I think $40m of funding for a organisation called Support Act which helps with mental health for people in the music industry and then Rise Funding which I think ended up being close to half a billion dollars to help put on shows and to provide funding to various events and labels and other people in the Arts industry. Then even NSW through Minister Ayres at the time and Premier Berejiklian came up with a concert called ‘Great Southern Nights’ which was to put on a 1,000 Covid safe gigs throughout NSW which was quite incredible and she told me later she ‘okayed it but she didn’t actually think we’d make it happen.’ But we were able to pull it off and again getting people back out. Having Covid safe shows, getting artists paid, getting venues paid and giving people a little bit of hope in regional Australia. So super tough time. Those initiatives they clearly weren’t able to exactly build back what would happen before but they were able to give people a lifeline through those incredibly difficult periods and I would say that we’re not completely out of the woods. We’re still rebuilding the industry off the back of that. |
Jenelle | What I love about that is that you’ve talked about some of the really cold hard structural elements of the industry. Whether it’s the regulatory, underpinnings, fund raising, the statistics about the impact on industry when music is such an emotive heart felt – you don’t even know what’s going on, but you are swept up in collective appreciation of something that is so universal and Great Southern Nights would have been all of that – the feelings of what you’ve been able to create but there is so much structural stuff behind that, that was required to make something that feels so organic in the moment just be. |
Dan | I think when you are working in the industry you want it to be like ‘Wizard of Oz’ that behind the scenes everyone is working incredibly hard but the audience doesn’t care who the record label is, who the manager is, what’s happening behind the scenes. The artist and that’s why the artist is always the hero. The artist is our front. Our job is to make the artist look great, feel great, and perform brilliantly and our job is about connecting them with fans and helping them connect with fans. That’s what it’s about. I think at the business level there is so much data. So 20 years ago, 30 years ago, even 10 years ago if you wanted to sign an act it was all about going out and seeing them play live and being in the back row at midnight when they’re going on stage. Now because it is a digital business there is so much data around what songs are working, what’s happening on social media. It is a real conscious balancing act at the moment between let’s call it ‘art and science’. How much of it is ‘gut feel’ still. When you’re looking to sign an artist, you listen to a song and how much is data. During Covid it became all data cause we had no ability to go see an artist play live so it was just the data. Before that it was all art and gut feel and really now it’s finding a way to balance the both. It is a little bit of data but you still need to bring the gut feel and the art and see how the artist performs in front of a crowd, and sit down with the artist and get a sense of who they are and what they want to achieve, and do you align, and that human element. So yeh I think that’s at the moment in the industry, is that, I think it’s healthy tension between data and art. You never want it to become too much data, but you also need to be informed by it. |
Jenelle | Yeh and I think if you lose that gut feel you’ve lost the heart and soul of music as well right. |
Dan | Absolutely. There is still I think no better data than walking into a room and seeing how fans are reacting to a particular artist, it’s an x-factor that some people have it and some people don’t. |
Jenelle | Dan, you’ve talked about Australia in the past being quite isolated within the music scene. I’m interested in that and has the data element changed that? How has it impacted your own career? What do you think about the isolation piece? That you’ve commented it on before. |
Dan | Yeh, we’re at a really challenging time I think for Australian creative industries. I think music again is like the tip of the spear on that. We’ve always been isolated and our isolation has been our biggest advantage and biggest disadvantage. |
Dan | With growing up you had the ability to a radio played Australian music. TV played Australian music. A lot of people went out to see shows and Australian artists were out there playing and before digital most record stores stocked a lot of Australian music and there was only a limited amount of albums that you could physically fit inside a record store. So, if you can convince a record store to make sure that Australian music was prominent then people had a good chance of picking up an Australian album or CD when they walked into the store. These days we exist with global platforms in music that have the entire history of recorded music available. So at any point in time you could listen to Beethoven, Beyonce or The Beetles. You have that ability. We didn’t have that. Growing up you were limited by your record collection, or your brother’s record collection or what you were quick enough to tape off the radio. Today when Australians are releasing music, they’re releasing music and competing against 30-40 million songs and the entire history of recorded music and every great song that’s ever been released. And we no longer have the gatekeepers around to protect Australian music. So that’s the threat. The opportunity is there is a billion people listening to English music and there is 2 to 3 billion people on digital platforms around the world. So instead of marketing your music to 25 million people, you’re marketing to 3 billion people. So, it’s a conceptual shift of how do we become a much more export focused business from day 1 of an artist’s career. Export was always part, whether it was ACDC, or INXS, or Midnight Oil, or Kylie, they often broke internationally on the fourth album, their fifth album. These days you don’t have 10 years in order to break internationally. So, it’s a conceptual shift of how does local content. How does local Australian content compete in a global platform world? We are constantly looking at what that means for us as a business. Who are the artists we sign? How do we market? What are the levers that we can pull in order to do that? And I think that’s an ongoing challenge and I don’t think we’ve solved it, but at least we know what the problem is. |
Jenelle | In listening to you over the various initiatives we’ve talked about, whether it’s regulatory shifts, business model shifts, experiential shifts, the conceptual shifts that you’ve just been talking about. That’s a hell of a lot different types of changes you’ve been navigating or leading – what have you learnt about yourself as a leader? Whether it’s within your own teams? Your organisation? In the industry? In the broader ecosystem? What’s your reflections about your own leadership? |
Dan | Yeh I think I needed to recognise that I’m very comfortable with change personally. I probably seek it out and I get excited by it but that’s not the natural state for a lot of people. Change is scary for a lot of people which makes sense. So not assuming.. probably when I was younger I assumed that everybody was up for the challenge and up for the change and recognising that’s not the case and that you need to bring people with you on the journey, which I thought I was probably doing at a high level but maybe not throughout an organisation. So, understanding that change is a scary concept for a lot of people plus there is a lot of people with vested interests to keep the status quo. So, understanding how you shift perspectives and shift attitudes both internally and externally. I think I was better at doing that externally than internally and I’ve learnt to be better at doing that internally as I’ve progressed. So that’s definitely one lesson. Then knowing that things take time. So I’m quoting all these tech guys. But my other great quote was Bill Gates he said “We always overestimate the amount of technological change in 2 years but underestimate it in 10 years.” So thinking longer term that well this digital… and it really happened in music and you can actually look at the decades and shifts. So that’s another good conceptual model to say to people like “We have to plan for this now”. “We’re not going to see the P&L shift in the next 18 months, but if we don’t start this now, the industry will be here in 5 years and 10 years and we’ll be completely all it seeks.” “We won’t have moved and start moving the organisation.” The other thing is ‘completely flip the organisation.’ Because the revenue or the profits are not going to be there to support it in the first year so how do you slowly, how do you transition the business over time guarding towards that 5 to 10 year plan without throwing out the baby with the bathwater in year 1. That’s challenging. That’s really, really difficult. It takes time convincing internally and externally, and trusting yourself that you’re moving the chess pieces in the right possible way and no one gets it right all the time. I think that was my other lesson. I’m definitely, I would say I used to be a perfectionist. I’m getting much better at not being a perfectionist and recognising that with making a decision you are never going to have 100% right on everything and you are never going to have all the facts so it’s more important to make a decision and more the ball forward rather than waiting for perfect information to make a perfect decision. |
Jenelle | That’s a real truism for opting for progress over perfection otherwise you’ll just be in a state of stasis. Spot on! So listening to you. I’m going to change tack for a moment, but building off the idea of the lessons of internal change and taking people on that journey with you and maybe slowing down on the internal side, you have always stayed true to your beliefs whether it’s the right musicians or also commemorating your relationship with your family. I know you have a strong relationship with your grandparents who were holocaust survivors and you shared their story in a letter to the Warner Music staff on last year’s Holocaust Remembrance Day. So, a very vulnerable and open share. What motivated you to do that? Why was that important for you to do so at that time? |
Dan | Well, I think I was speaking with the Global Head of People and Culture and she asked would you be open to writing a letter or penning something for the company and I was very honoured and happy to do so. Growing up in Melbourne all 4 of my grandparents were holocaust survivors. That was my only reality that I realised how unique it was to have 4 people who had went through obviously hell on earth but survived and the major lesson I took from all 4 of my grandparents was their resilience. Their ability to not define themselves by their victimhood. To remember it, but not define themselves by it and to come to Australia and rebuild their lives and fill their children, my parents, with love and with a love of their religion, their culture but of Australia. I think that was an incredible lesson for me compared to what they went through writing a letter didn’t feel particularly brave. If it helps shift perspective or gives some perspective. We’re clearly living unfortunately in time to where there is a rise of antisemitism. It’s up to all of us to try to hopefully bring people back to conversation, and education, and cohesion. That’s the Australia that I grew up in and I think that’s the Australia that we want to live in and certainly any small part that I can play to help that. We need to do it. |
Jenelle | So what was the reaction to your letter? And I guess what’s your reflections on what that meant then for you to open that level of vulnerability up based on those reactions? |
Dan | It definitely helped people start sharing their own experiences and their own stories. At the moment authenticity is so important because we’re bombarded with so much at the moment and there is so much fake. Whether that’s fake AI stuff or people trying to sell you things. Anytime you can be authentic and vulnerable I think it definitely strikes a cord with people. Again, anything that I can do to try to bring some more understanding of what’s happening for various people at the moment. That’s not just Jewish people. There is a lot of people suffering and a lot of people feeling that lack of cohesion that’s happening in society at the moment. It’s very, very troubling. |
Jenelle | It is indeed. Dan when you and I first chatted in prep for this podcast you talked about when you’re looking back at your life you seem to go through a cycle of change every 7 years or so. I don’t know where you are in the 7 year cycle at the moment. |
Dan | It’s probably coming back up which is scary! |
Jenelle | Is it? |
Dan | No, no, no. |
Jenelle | Ok well that beats the final question I have for you. Where to from here? What is the new act for Dan Rosen look like? |
Dan | You know I’m not sure. I’m really loving where I’m at. I feel very, very fortunate and privileged to work in something that I care about. That I’m passionate about. Every now and then really pinch myself ‘oh like how did I get here?’ I generally do feel that sometimes. I was at the Grammys this year and got to sit on the floor of the Grammys and literally one of my earliest childhood memories is my Mum picking me up from school when I was 7 and telling me that ‘Every Breath you Take’ by the Police (which was my favourite song at the time) won the Grammy for song of the year. |
Jenelle | Cool. |
Dan | And there I was there and I really did feel like an incredible moment. So hopefully I can continue to add value to our artists here and to our international artists that we look after and continue in this career and find more thing to give back to the community and raise a couple of good kids. That would be pretty good next step I think. |
Jenelle | That sounds pretty good to me and I feel like we’ve come full circle on this conversation when you opened with your goal is to do as much as you can for as long as you can. This first half of your life seems to you have packed an absolute punch in there and I can see that energy and passion is not waning at all. For me, listening to you I’ve loved understanding how all the experiences that you collected in your life haven’t been at odds with each other or this duality that people have talked about. I think they’ve all been building blocks because as you say in hindsight makes so much sense. You’re mission to leave organisations or causes better than you found it. Coupled with, how do we make it easier to do the right things, harder to do the wrong things and the ways in which you’ve effected change at a structural level, at an emotive level has been so powerful. You talk about data and gut feel in the industry and that’s exactly what you’ve done to effect change. You’ve looked at the data. You’ve built up the cases and the stats but also you’ve created that really emotional humanistic side of change as well. And I really love the reminders around appetites for change. Not everyone has the same appetite for change and time horizons have changed. We can overestimate short term change and underestimate long term change. If I think of that, if you just remembered those things that people will respond to change differently and change can creep up on you when you don’t expect it and it can pass you by when you are expecting it. Really powerful reminders in there. Not to mention all your demonstrations of authenticity and vulnerability. |
Jenelle | So Dan heaps to have taken away from this conversation. |
Dan | Oh thank you so much. That sounds good. I like that summary! |
Jenelle | I’m glad to hear it. Thanks for your insights. |
Dan | Awesome thank you for having me really appreciate it. |
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