London, 15 January 2008 — EMI Group is today announcing a series of wide-ranging initiatives within its Recorded Music division to enable the group to become the world’s most innovative, artist friendly and consumer-focused music company.
In a series of presentations to staff, artists and managers, Guy Hands, EMI Group’s chairman, is unveiling a fundamental reshaping of the business to reflect the rapidly-changing nature of the music industry. The changes include:
- Repositioning EMI’s labels to ensure they will be completely focussed on A&R and maximising the potential of all their artists
- Developing a new partnership with artists, based on transparency and trust, and helping all artists monetise the value of their work by opening new income streams such as enhanced digital services and corporate sponsorship arrangements
- Bringing together all the group’s key support activities including sales, marketing manufacturing and distribution into a single division with a unified global leadership
- The elimination of significant duplications within the group to simplify processes and reduce waste
The changes, which will be implemented over the next six months, will enable the group to invest more in its A&R operations both to identify and sign promising new artists and to maximise the potential of its existing roster.
The restructuring is being carried out following an intense three-month consultation review of the business by Terra Firma since it acquired the business last year and many of the measures being implemented have come at the suggestion of staff, artists or their managers.
The restructuring will also enable the group to capture significant efficiencies and cost reductions which are expect to reduce costs by up to £200 million per year. The restructuring is also expected to lead to a worldwide headcount reduction within the group of between 1,500 and 2,000.
Guy Hands commented: “We have spent a long time looking intensely at EMI and the problems faced by its Recorded Music division which, like the rest of the music industry, has been struggling to respond to the challenges posed by a digital environment
“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.”
For further information:
Amanda Conroy 020 7795 7529
Maitland (for EMI) 020 7379 5151
Financial Dynamics (for Terra Firma) 0207 831 3113