EMI Makes Up With Industry Trade Body
March 11, 2008 at 5:17 AM (PT)
EMI has made peace with the music industry's international trade association, more than three months after its private-equity owner threatened to cut its annual funding for its activities in half or pull out altogether, reports THE FINANCIAL TIMES. THE INTERNATIONAL FEDERATION OF THE PHONOGRAPHIC INDUSTRY said it had been able to retain EMI, now owned by GUY HANDS' TERRA FIRMA GROUP, after agreeing to undisclosed cuts to its costs.
JEAN-FRANCOIS CECILLON, head of EMI MUSIC's international labels, said: "Together we have been able to find solutions which we believe are achievable whilst maintaining what the IFPI does best in representing our industry."
One music industry executive familiar with the discussions said more than half of the IFPI's funding came from national associations, but EMI had been able to make a substantial cut to its direct contribution.
IFPI Chairman/CEO JOHN KENNEDY said, "We were certainly asked to make some changes, but that's something we expected. I've been running the organisation for three years and every year I've tried to reflect the fact that the music industry is in more difficulty."
KENNEDY said initial estimates that EMI's spending on trade associations amounted to $250 million a year were "completely incorrect." An EMI spokesman would not comment on the figure, or on how the agreement would cut its outlays.