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The move comes as the former CEO simply wasn't living up to the company's expectations

Sony BMG CEO Andrew Lack has recently been demoted to chairman of the board while Rolf Schmidt-Holtz has been promoted to replace him as CEO. The announcement by Sony BMG was somewhat expected because Lack's reign at CEO has been heavily criticized over the past several months, especially because of a DRM scandal with Sony CDs. Schmidt-Holtz currently resides in Germany but will relocate to New York in the near future to begin his tenure as CEO.

Following the change, Schmidt-Holtz will assume overall management responsibility, while Lack "will lead the company's public policy and industry initiatives, and assume operating responsibility and oversight for the theatrical film business of Sony BMG," a joint statement said.

Sony BMG operates several record labels, including Jive, RCA, Columbia and LaFace.