ELECTRIC AND MUSICAL INDUSTRIES Ltd

Ownership

• EMI is a British music company• It is ‘One of the Big Four’. • It was founded in 1931 and is now owned by Terra FIRMA capital partners

(since 2007)• Some bands and singers have found this takeover difficult with Joss Stone

and Roisin Murphy both leaving.• EMI is soon to be taken over by Citigroup it’s biggest creditor to who it

owes money to. It has fallen into millions of debt because of the decline in record sales and the lack of business.

• It is highly likely that one of the other big four will take over the label however deals have already fallen through with Sony and Universal and TerraFIRMA have until mid June to come up with more money.

“EMI reissued albums by the Beatles - who were the best-selling musical act of the last decade - in September 2009. Coldplay's 2008 album, Viva La Vida Or Death And All His Friends, sold 2.7 million copies, but new releases by other acts on the label have stalled, EMI commanded only 7.8% of the market for current releases in 2009”

Labels under EMI

• Angel Music Group• Capitol Music Group• Blue Note Label Group• Caroline Distribution (USA)• EMI Christian Music Group• EMI Arabia• Virgin records

Each of these labels all have several smaller labels under their own name.

For example Virgin Records own Innocent records (pop label)

Artists under Innocent include Simon Webbe.

Production

New media technology has affected EMI’s production by making music albums / singles more readily available online. They are cheaper to buy, and can also be illegally downloaded which means little or no money would go to the label or the band.

Media technology has helped EMI find and recruit artists because they use the internet to their advantage. They use social networking sites as a way of recruiting unsigned bands and they regularly update their twitter page’s as a way of marketing new releases and information on festivals and concerts as well as line up changes in bands. On their home page EMIMusic.com

they have added links to their social networking pages.

Long Tail on Amazon

Katy Perry is number 216 on the bestsellers list

Alice In Chains is number 1174 on the list

30 Seconds To Mars is number 19,478 on the list

The long tail offers you other artists lower down the best sellers list. This causes larger amounts of less popular Items to be sold.

A long tail diagram

Marketing

EMI uses social networking sites as a way of marketing new releases, festivals and concerts. On their home page EMIMusic.com they have added links to their social networking pages such as twitter, here it lists upcoming single and album releases. They have a EMI channel on youtube.comThey also have the singer/band appear on radio shows and TV shows as well as having the music video on music channels on digital and satellite. They also have articles in general magazines, as well as music magazines.EMI used to use Virals by letting consumers embed there music videos on to other Websites (note OK GO Anti Viral Marketing Strategy in favourites) however this has since stopped. which EMI think is a good thing, but it actually isn't because although they are earning per view, less people pay to watch which means less people listen which means less people want to buy merchandise and tickets and full albums and so they actually earn LESS money than if they let the viral spread.

Distribution

EMI distributes music to the fans in four different ways.

Physical

C.D singles/albums in stores like HMV

Online

Hybrid retailers like amazon.com, play.com

Pure digital retailers

ITunes

Live streaming from the internet

Last.fm which makes money using a pay function

Spotify, which uses a fair policy for all.

Exchange (consumption)

Fans will access the music in one or more of the four distribution options.

They would have to pay for most options. However they could live stream it or

P2P over the internet (or illegal piracy or download).

It would be unfair to the music industry to expect music for free, however it

would be nice! If we were to get music for free, EMI could make money by

having their acts perform at more gigs and festivals ( which have over the past

few years made a huge comeback in the U.K). They could have more

merchandising on shelves and get revenue from adverts on the EMImusic

Website. Digital downloads are steadily increasing, and it could be an option to

Respond to this and use it as an advantage.

“Trade revenues up 12% to an estimated US$4.2 billion in 2009”

“Single track download sales increased by an estimated 10%, while digital albums rose an estimated 20% in 2009”