New Owner Hints At Keeping EMI Recording Division
September 17, 2007 at 5:30 AM (PT)
GUY HANDS, the new Chairman of EMI, pledged to hang on to the company’s recorded music division in his first remarks since TERRA FIRMA, his private equity firm, took control of the business, reports THE TIMES OF LONDON. His comments quashed speculation that TERRA FIRMA might sell the recorded operation -- the half of the business that handles artists -- to WARNER MUSIC, leaving the private equity firm holding on to the market-leading music publishing unit that owns songwriter copyrights.
"We will definitely keep EMI MUSIC [the company’s recorded music arm]. We are committed to making it viable," HANDS said at the ROYAL TELEVISION SOCIETY (RTS) annual conference in CAMBRIDGE.
But he made clear that EMI would have to be restructured so that it could generate a profit even when an artist sells "only" 200,000 records.
"We have to get away from the cult of the hit. This can’t be an industry where it is only possible to make a profit from selling two million albums," HANDS said, hinting at what are likely to be deep job cuts in EMI’s 5,500-strong workforce.