While the Warner Music Group is folding the sales staff of the Alternative Distribution Alliance inside that of WEA, the two distribution staffs will be kept separate in their dealings with account and labels.

In the new set up, there will be a unified sales team with the ADA field staff reporting into WEA's senior staff, but top ADA executives like David Orleans, senior VP of sales and marketing; Amy Dietz, who heads up ADA's label services group; and Michael Bassin who heads up ADA's national account, will continue to report into ADA president Mitch Wolk. Wolk reports to WEA president Mike Jbara.

Although the WEA and ADA physical sales staff are unified in the new structure, the ADA field sales staff will continue to solicit accounts for its labels while the WEA field staff will continue to only handle the WEA labels. On the other hand, the ADA digital staff will report into WEA senior VP of digital sales and marketing Larry Mattera.

In May, Ryko Distribution was folded into ADA because of declining CD sales and sources say the latest move is also a response to the economic reality of the music business where everyone has got to do more with less. But this integration is thought out so that ADA staff can now have a deeper relationship with its labels and go beyond their current service capabilities by providing them with access to more resources, a source familiar with the move says.

For example, now the ADA field sales staff will be able to call on the WEA inventory analysts that cover the different retail accounts, sources say. Likewise, the ADA labels will get more digital resources because of WEA’s capabilities in that distribution channel.

As part of the economic realities, the combined WEA and ADA staff underwent a minor downsizing with about 4% of the staff being let go, sources say. The cuts include well known ADA names like Andy Allen, the former ADA president, who has been serving as a consultant for the past few years. He will now leave the company at the end of the year and ADA executive VP of global/GM Michael Black will become a consultant.