EMI Changes To Roll Over Next Six Months
January 9, 2008 at 3:20 PM (PT)
It looks like those major changes ALL ACCESS reported (NET NEWS 1/14) are coming to EMI over the next half year, instead of all at one. That's what came out of an internal EMI webcast this morning, lead by TERRA FIRMA CEO GUY HANDS.
ALL ACCESS has learned that EMI's new management structure has ROGER AMES as Pres./NORTH AMERICA and U.K., ASHLEY UNWIN as COO/N.A. and U.K, JF CECILLION as Pres. International Labels, CHRIS ROLING as COO/International Labels, BILLY MANN Global Creative Officer and CARYN TOMLINSON as SVP/Artist Relations in a "Labels/A&R Division.
In "Music Services, MARK HODGKINSON is EVP/Global Marketing, DAVID KASSLER EVP Artist Projects, RONN WERRE EVP/Global Sales, MARK CLASPER EVP/Marketing Sales & Operations and STEPHEN ALEXANDER as EVP/Studios & Archive.
Report: Artist Advances To End
In a dramatic demonstration of the economic toll of digital piracy on the music industry, THE LOS ANGELES TIMES reports that EMI is still expected to trim more than a quarter of the LONDON-based company's employees and radically alter the way it does business to further cut costs.
Two executives inside EMI told THE TIMES that EMI will become the first major label to eliminate the large advances that customarily are paid in the industry to proven artists. For instance, British pop singer ROBBIE WILLIAMS reportedly got an advance worth $150 million when he signed with EMI in 2002. His future advances could be in jeopardy because of his disappointing sales.
EMI instead will pay retroactive compensation based on how well a recording sells, one of the executives said.
The approach will probably take the record company out of the running for top acts, which can negotiate bigger advances from UNIVERSAL MUSIC GROUP, SONY BMG or WARNER MUSIC GROUP, the executives said. A severe cutback in advances means that "you're not competitive anymore for A-list talent. You're asking to be outbid," the source said.
HANDS will decrease marketing spending but invest more in artist development, the two executives said. Striking deals with smaller bands that sell fewer albums could be more practical today, at a time when well established bands are less dependent on the marketing muscle of a major label.
"The status quo hasn't exactly worked," the other executive said. "We can put the emphasis on a good-quality record that doesn't sell a million, but a profitable quarter of a million."