EMI Rescue Plan Gives Artists Better Digital Deal: Report
By Robert Andrews - Thu 10 Jan 2008 07:08 AM PST
Guy Hands’ new strategy to turn EMI around will stress “tackling digital challenges”, “understanding the needs of the consumer” and the “importance of keeping artists at the heart of what we do”, according to an internal email The Times says it obtained. Hands - owner since EMI’s takeover by the Terra Firma private equity house last year - will present the strategy on Tuesday. Times says: “Mr Hands is keen to provide greater incentives for artists than those traditionally offered by the music majors, because the rise of digital downloading has changed the needs of the consumer, making artists less dependent on remaining with a large record label”.
If Hands can tick that box, he might be less likely to lose artists like Radiohead, which last week complained it got ”absolutely zero” from EMI for digital and iTunes sales. EMI will clearly need to provide more flexibility and more money in a revised digital licence to its roster of artists.
The label is also mooted to ”digitise more of its back catalogue, to move its marketing strategy towards digital sales and to make better use of social networking sites to find new talent”. Note, Sony (NYSE: SNE) BMG last March switched its A&R, artist discovery channel from demo tapes to requesting digital tracks via blogs provided by Six Apart. EMI doesn’t need to do anything so specific with just one provider - MySpace and the web in general are awash with more emerging bands than one can shake a stick at.
Posted in: Companies, EMI, Entertainment, Music
