LONDON, 4 AUGUST 2008 — EMI has entered into a new agreement with its joint venture partner Typhoon covering their recorded music activities in the People’s Republic of China (PRC), Hong Kong and Taiwan.
Under the new agreement, which is effective immediately:
- EMI has agreed to sell to Typhoon its stakes in their two joint venture companies in the PRC (record company Typhoon Music) and Hong Kong (artist management and record company Gold Label) as well as EMI Music Taiwan
- Typhoon becomes EMI Music’s exclusive licensee for the physical-format distribution of international repertoire in the PRC and Taiwan
- Typhoon becomes EMI Music’s non-exclusive licensee for digital product in the PRC and Taiwan, while EMI will maintain its own digital distribution capabilities in those countries
- EMI has the option to release Typhoon’s music internationally
Chris Roling, EMI Music’s president and COO, said: “We are delighted to have renewed our agreement with Norman Cheng who is the most successful pioneer in the Asian record business. Chinese music is a very exciting emerging market with longer term growth potential – particularly in digital – but still with economic and other challenges such as high rates of piracy. This new corporate structure will allow us to reduce our cost base while providing EMI Music’s international artists with a market-leading partner for the release of their music in the PRC and Taiwan.”
Norman Cheng said: “I am pleased to be able to announce this new development which sees Typhoon continuing to work closely with EMI and its international artists in the PRC. It provides Typhoon with the unique opportunity of now looking at the entire Greater China region and realizing the potential that it offers artists – both Chinese and international – and consumers everywhere. Yes, these are challenging times for the global music industry, but with consumers listening to and having more access to music than ever before, it presents many of us, especially in the PRC, with great new business and artistic opportunities.”
Amanda Conroy, tel: +44 20 7795 7529
Richard O’Brien, tel: +44 20 7795 7447
at EMI Group, London.
Neil Bennett, Maitland: +44 20 7379 5151