Executive Summary: Arista Records
Arista Records was founded by Clive Davis in 1974. The story of Arista and its founders appear to embody the ideals of the American paradigm in that Davis turned personal misfortune into one of the most prosperous record labels available today. Through innovation and an adherence to his personal values in the face of criticism and evidence to the contrary, Davis built the label of Arista to sky-rocketing success. It is precisely this success that helped the company survive in spite of disasters such as the Milli Vanilli scandal. Arista's story begins with Clive Davis being fired from CBS Records. He was subsequently employed as a record and music consultant for Columbia Pictures. Here he rose to the position of president in 1974, combining Columbia's legacy labels into a single entity that was to become Arista Records. In 1976, Arista was sold to Ariola Records, based in Germany. Ariola then purchased RCA Records from General Electric in 1986, after which the parent company became Bertelsmann Music Group (BMG). These changes did not have any adverse effects on the label's rapid rise to success. Indeed, Arista, under the direction of Davis, appeared to go from strength to strength during the 1980s.
As such, the company does not face significant competition from new entrants into the market. One of these was the combination of Antonio "L. In the company's future, therefore, it could be recommended that BMG and Arista work more closely in decisions made for the label itself. Furthermore in its favor is the fact that the company belongs to a large music conglomerate in the form of BMG. " Reid and Babyface in creating LaFace Records during 1989. Houston brought significant positive publication for the label with her signing of a $100 million contract during 2001, while Dupri was named vice President for the company during 2003. In general, it appears that Arista Records is enjoying a very prominent position in the music industry, and that the company is likely to continue in its success for many years into the future. Nevertheless, Reid contributed significantly to the success of the company until his termination in 2004. Diddy" Combs in the creation of Bad Boy Records in 1993. On May 2, 2000, it was announced that Reid would take over from Davis in July of the same year. Such contracts then serve to reestablish and maintain Arista's favorable public image. Indeed, its successes are far more prominent and numerous than its few errors in judgment, decision-making and awareness of financial or artistic indiscretion. This was a controversial move, seen by some as indicative of a music industry increasingly dominated by large corporate groups such as BMG, rather than individuals such as Davis.
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