The new owner of EMI Group PLC has said he will drop artists the music group believes are not working hard enough and will overhaul the company’s own executives’ pay packages, the Financial Times reported Friday.
EMI, which has Coldplay, the Rolling Stones and Kylie Minogue on its roster, also threatened to withdraw stars’ lucrative advances if record sales are disappointing, the FT said, quoting an internal memo to staff from the chief executive of the private equity firm that bought the company in August.
Guy Hands, the CEO of Terra Firma Capital Partners, said the company would in the future be “more selective in whom we choose to work with.”
“While many spend huge amounts of time working with their label to promote, perfect and endorse their music, some unfortunately simply focus on negotiating for the maximum advance … advances which are often never repaid,” Hands said.
The report said the memo did not name any artists. The company, which Terra Firma bought for $4.9 billion, has been plagued in the past by late delivery of albums by some of its biggest acts.
Hands also criticized EMI’s “compensation and management system put in place over the last 20 years which does not encourage the right behaviors or reward the right actions.”
“What worries me is that the existing structures have been put in over a couple of decades and unpicking them in a way that releases the good in the company is not going to happen overnight,” he added.
EMI did not immediately return a call for comment Friday.
Now that’s desperation…
could this be the beginning of the end?
im curious to see how this whole thing will play out.
i foresee record labels going all digital and only sending physical copies by request…
all i give a shit about on EMI is the next 4 killing joke re-issues.
-E
Obviously the solution’s not signing innovative artists and helping them grow their fanbases over time with the freedom to do what they want.
After reading that it’s painfully obvious they’re losing money and fast. Maybe it is the beginning of the end. What emi seems to be doing is pretty drastic but also very desperate. Drop bands due to sales? Some of the greatest bands have had flops, to later make up for them. But they’re tightening their budgets, why pay a band they “feel they don’t need anymore”, but in actuality - can’t afford. I think this is all great and wonderful. These cash grubbers need to just retire and call it a day. But if the labels truly do indeed die, it’ll suffer and die a long, slow, and painful death. Just a matter of how long they’ll survive. 2011, anyone?
Just look at what some big-name artists, such as Paul McCartney, are now doing. They’re signing exclusive deals with Starbucks and Wal-Mart to release albums, bypassing the major label avenue. Even the wretched Spice Girls are using Victoria’s Secret as their exclusive outlet for releasing their special brand of shit-pop. New roads have been paved, and artists are now finding alternate ways to not only release their music, but do so with full creative license, no binding contracts, and more potential for profit. Major labels have been bullying and oppressing bands for many years. I’m surprised that these labels never cornered an artist into surrendering a percentage of tour revenues (unless it has happened, and we just don’t hear about it).
Seems like now the artists have the chance to say ‘fuck you’ to these corporate powerhouses. Modern technology + the internet equals a whole new ballgame for the music industry. We’re seeing the new methods, and so far they seem to be working. It’s now possible in this day and age for the artist to have full control of their work AND make a decent living, if they do it right.
1002
No new roads are being paved at all. All McCartney and the others are doing by signing to starbucks, walmart, etc. is just jumping from one corporate train to another. It’s somewhat original for starbucks, being as they’re not really a music label, but it’s still a corporation - which is generally the problem in the first place. For McCartney I think he just wanted to try it out and see where it goes. For anyone else, it’s probably just desperation since no one else wants to sign them. I mean come on…Spice Girls? They were only maybe relevant for maybe a couple of years before dying out.
live in LA for two minutes and see the" new" photo of posh spice beckham pulling on her earlobe with the wedge of hairdo falling over her eye.it’s the same pose over and over.
yeah branding. because we’re too lazy or stupid. buy some panties and a record. cup of coffee and a record.
whatever. labels will collapse and then? guess it will all go underground, so to speak. word of mouth, fansites, instant appreciation instead of waiting for a release “on schedule”.
EMI run by bankers or whover these brain surgeons are(apologies to REAL brain surgeons)
lots of handwringing in the industry.
EMI is pretty terrible. But considering everything Reznor’s said about UMI (universal/interscope), emi looks like a bunch of saints. But in reality, I think the digital releases/indie could do some real good. Who doesn’t have a modem these days? Who doesn’t have a debit/credit card or someone to help them along? The labels are seriously just hurting their image and reputations. And even if the labels truly do die and fade out, there’ll always be someone out there desperate enough to do anything possible to make a buck and do what the label tells them to do. The labels probably won’t die, but they’ll be clawing to survive in that oasis it’s created for itself.
Who doesn’t have a debit/credit card or someone to help them along?
right here.
all i give a shit about on EMI is the next 4 killing joke re-issues.
-E
WORD.
Night Time re-EQ’ed would be awesome…