14 January 2007, 20:20
EMI's top executives dismissed. Labels consider digital music options
Last week’s news suggests that labels begin to acknowledge that music industry is changing and even may try to restructure their businesses accordingly.
EMI
On 12 January the EMI Group released a statement announcing dismissal of its 2 top executives, a new cost saving plan and possible decline of revenues for 2006-2007.
The company describes the current market conditions as continuously weak. The Christmas sales were disappointing and albums released in the second half of the year didn’t perform as well as expected.
"In the Christmas trading period, EMI had been counting on strong performance by two key products — "Love," an album of remixed material from The Beatles, and Robbie Williams' latest album "Rudebox".
"Love" performed respectably, reaching No. 5 on the Billboard chart in the United States at the end of December, but "Rudebox" didn't show in the Top 40 in the latest British chart." (Associated Press).
The company announced there’ll be a restructuring program to save costs: "900 of the group’s 6,600 staff are expected to lose their jobs as EMI seeks to save £110m in overheads" (The Sunday Times). Also Chairman and CEO of EMI Music and Vice Chairman have been dismissed.
The EMI statement concluded with new estimates for EMI Music revenues which could decline by 6% to 10%.
However, "[EMI] remains positive … that there will be continued strong demand for digital music".
Universal Music Group
The Universal Music Group has created a new position of Executive Vice President of Global Digital Initiatives. Areas of responsibility include: brokering digital partnerships, incubating new ventures, and overseeing a broad collection of digital properties and initiatives.
Sony BMG
The Sony BMG has consolidated its physical and digital sales channels. "The realigned group will be known as Global Digital Business and US Sales". (Digital Music News). Although the same man who was a key figure in the DRM/rootkit situation will be heading the new group.
Read more:
EMI Group plc announcement
The music dies for EMI’s Nicoli, The Sunday Times
Soft Sales, Selloff Strategy Motivate EMI Shakeup, Digital Music News
EMI ousts execs, issues profit warning, Associated Press
EMI's Off Note, Forbes
Executive Shuffle: Universal Music Group, A2IM, RIAA, Digital Music News
Sony BMG Consolidates Physical, Digital Sales Divisions, Digital Music News
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Comments 7
1. by aom3, 16 January 2007, 20:09
should take a look at what UK is doing which has recently introduced digital downloads into the music charts.
www.aom3.org AllofMP3 Community
2. by Josh, 16 January 2007, 20:32
Lessons learned. Nobody can stop the tide of time. Change in the way music is distributed is inevitable and irreversible. This pretty much driven by a more savvy consumer, take it or leave it.
3. by Scott NED Kirby, 22 January 2007, 05:37
99 Cents per song is a rip off. OF that most people agree. And yet we SHOULD figure out a way to PAY the artist. NOT the labels who are mostly overpaid dinosaur farms but the men and women who write, arrange and produce the music. There has to be a workable compromise here.
4. by alpha, 23 January 2007, 02:05
Music industry is no more a high margin industy. This time is finished. ALLOFMP3 users enjoy prices that will prevail sooner or later.
5. by tom, 27 January 2007, 18:33
i have to agree with kirby. it is unfortunate that the artists are caught in the middle on this, but i refuse to pay $20 dollars for a cd with 2 or 3 good songs on it. there are too many options out there, legal or otherwise to continue to be ripped of by the RIAA. the RIAA has been screwing artists and consumers for so long they think it's there god-given right!
6. by god, 3 February 2007, 03:31
allofmp3 is a ripoff. this stuff should be free! artists should pay us to listen to their music! how dare they! my goodness! kill them all!
7. by karl marx, 3 February 2007, 03:33
even though i am long dead, i am still disgusted by the greed of these horrible artistys like metallica an belle and sebastian. yes god, i agree - how dare they!