EMI's new owner to axe as many as 2,000 jobs

[jemima]

From
http://www.telegraph.co.uk/money/main.j ... emi115.xml

"EMI's new owner to axe as many as 2,000 jobs
By Juliette Garside, Media Correspondent
Last Updated: 2:06pm GMT 15/01/2008

EMI today confirmed plans to turn around its fortunes by finding £200m of savings a year by cutting between 1,500 and 2,000 jobs and pulling in money from corporate sponsors.

The changes, implemented over the next six months, will fall mainly on EMI's record labels rather than the music publishing business, which is profitable.

Duplication of back office functions at the dozens of individual labels, which include names like Parlophone, Blue Note, Capitol and Virgin, will be removed by bringing together support services including sales, marketing, manufacturing and distribution into a single division with a unified global leadership.

The home of Joss Stone, Gorillaz and Kylie will also seek to attract corporate sponsors tours and albums.

The model is the deal struck by The Spice Girls and lingerie brand Victoria's Secret. Their album went on sale first in the retailer's shops and their first comeback live performance was at the Victoria's Secret fashion show.

EMI also vowed to improve digital sales and marketing of new releases and back catalogue albums.

The group, bought by city financier Guy Hands' private equity vehicle Terra Firma last August, said it would be "developing a new partnership with artists, based on transparency and trust".

The restructuring follows an intense three-month review, which has seen post office chairman Allan Leighton and former BBC director general Lord brought in as advisers.

Mr Hands borrowed £2.5bn from Citigroup and injected £1.5bn of Terra Firma's money to buy EMI, paying £4bn for the group including debts.

Since then, the credit crunch and relentless fall in popularity of the CD have seen stock prices at rival Warner Music Group plumment, making the purchase look pricey.

One of the world's four major music groups, EMI is roughly equal in size to US-listed Warner, which currently has a market capitalisation of around $770m.

But Mr Hands said: "We believe we have devised a new revolutionary structure for the group that will improve every area of the business. In short, it will make EMI's music more valuable for the company and its artists alike. The changes we are announcing today will ensure that this iconic company will be creating wonderful music in a way that is profitable and sustainable."



So they're going to remove the "duplication of back office functions", are they? That will lead to savings of £200 million a year? This is an interesting business plan.

However much money will be wasted on creating duplication of back office functions if the wasteful idea of multiple mail companies in the UK is allowed to progress? Certainly enough to pay for pension provision for the workers within Royal Mail....

[DGP1]

Maybe they should just stop buying Columbian Marching Powder for everyone and that should save them the £200 million

[axeman]

No doubt Lieton will bring in polish bands to break the union now that artists are striking

[POSTMAN]

For any of the late comers (where ya been) confused as to why this interests us

http://www.royalmailchat.co.uk/forum/vi ... php?t=9030

Post Office chairman Allan Leighton has become an adviser.....

[johno47]

I see Leighton is still using his tried and trusted method of slash and burn...UNITY IS STRENGTH.

[DGP1]

Did anyone see the guy that's now in charge, he looks like Boris Johnson with glasses typical public school boy who needs a spiv to do the work for him

[Phantom]

In 1993 a german fella who invented mp3 offered EMI his program and said embrace this, this is the future of music over the internet. They laughed him off and kicked him out and he said "well in that case i'll make my program free" That was the beginning of the end for music CD sales.

Plus the heavy use of manufactured so called bands has made music a joke and something not really that important anymore.

Its basically tough s**t for EMI and £4bn that was paid for it is a complete joke, they will not get any return.

[norbert]

In 1993 a german fella who invented mp3 offered EMI his program and said embrace this, this is the future of music over the internet. They laughed him off and kicked him out and he said "well in that case i'll make my program free" That was the beginning of the end for music CD sales.

Plus the heavy use of manufactured so called bands has made music a joke and something not really that important anymore.

Its basically tough s**t for EMI and £4bn that was paid for it is a complete joke, they will not get any return.

CD's were the first thing in the digital age in the late 80's , the CD players were not that clever ,Phillips who were the first to bring them out used to charge £150-200 for them ,the Marantz Hi -Fi one was £400 people used to rent them !.CD's were £12-14+ to buy then . People replaced their vinyl but found out they'd bought recordings designed for vinyl on CD .

The German Guy was right , the next adaptation for computers would be Mp3's over the Internet , the only barrier would be the speed of connection and download , Cable came in through the States , then better Broadband , any one with half a brain could see how the wind was blowing .

Sales went down and people don't buy in the quantities they did in the 70's /early 80's as there was alternatives to crackly vinyl and hissy old tapes . EMI did miss the bus years ago , people like McCartney who upped sticks after donkey's years with EMI are no fools , they've been in Showbiz long enough .

The I-Pod and the Imac saved Apple from bankruptcy , and that German Guy made his Program Open Source , bet that p***ed off "Uncle Bill " and Micro£oft and their monopoly .

All those Trash TV programmes are glorified Care in The Community Karoake, half those manufactured boy and girl bands can't really sing without vocoder Programmes to put them back in tune and sampling etc , half the CD's end up in the Supermarket Bargain Bin .

Some of the older bands don't have deals with the likes of EMI , they work from home selling CD's online like Mark King of Level 42 , they even had a poll online saying we're going on Tour , what would you like us to play ? . People like Paul Weller were dropped as they don't sell enough but they have no trouble filling up Theatres at £30+ per ticket .

Why Subsidize Dinosaur Corporations when you can see and hear great acts on YouTube , the quality is c**p but it's better than nothing . The likes of EMI persist with dross whilst talented people who can write , sing and play can't get deals as it's too much of a risk .

[sevenandseven]

Why Subsidize Dinosaur Corporations when you can see and hear great acts on YouTube , the quality is c**p but it's better than nothing .

That is the real problem. People are prepared to be ripped off listening to crap sound from compressed MP3 and mobile phones simply because it is a 'new' technology. Even cassette tapes are better than those. Bring back vinyl! And mono!

[norbert]

Why Subsidize Dinosaur Corporations when you can see and hear great acts on YouTube , the quality is c**p but it's better than nothing .

That is the real problem. People are prepared to be ripped off listening to crap sound from compressed MP3 and mobile phones simply because it is a 'new' technology. Even cassette tapes are better than those. Bring back vinyl! And mono!

I downloaded Led Zep 1 as a MP3 files and burnt them to CD , it was clear but all you could hear at times was Plant & Jimmy Page , there was no "middle " to the thin sound and this was on fairly good separates gear . I've listened to the brother's I-pod , nice bit of kit , but it sounded too bright as that's what younger ears like , older ears prefer more middle .

The Computer has decided what you apparently don't need to hear! to a tenth of the original file . I converted most of my MP3's back to AIFF's on I-tunes , some I couldn't because they'd DRM protection on and it took too much fiddling trying to get the DRM off , the AIFF conversions just cut out after 30 seconds on the CD player .

Got a open source app called Switch which converts to AIFF and other formats . The other problem with MP3's is bit rate as 128 is only the same quality as FM Radio .

I did get a belting Denon Tape player from the boot sale for £10 , my amp cost me £5 , 24 years old , still going strong , spent more on half decent cables than the gear ! , there is something about decent analogue, spare TV and video is rigged up to it , we've a retired art teacher at my local in town who DJ's for us and puts the sound from his deck through band speakers , not perfect but it's good .