Tag Archives: EMI

For decades the major labels have operated within a clearly defined ecosystem. You might forgive them if their behavior didn’t change immediately as the environment around them made a dramatic shift. Like any species would, their first reaction was to attempt to apply their existing knowledge to an unfamiliar situation. When the old lake dried up, they simply looked for the next biggest watering hole (iTunes, Amazon MP3, MySpace, etc.). They claimed the territory as their own and still attempt to destroy anything they perceive as a threat.

 While this is working to a degree, I think we can all agree that there’s a little less meat on their bones these days. The label with the most pronounced ribcage would be EMI. Unable to hold their own, they’ve been chased from the pride and now find themselves in new territory. With the relentless forces of nature at work, we’ll soon find out if this castoff has the wits to survive on its own.

 EMI has been licking its wounds for a while but the company seems to have regained enough of its bearings to attempt an offensive move. The result being the launch of their new “direct to fan” site, EMI.com (not accessible outside the US and UK). While this is certainly a new behavior for EMI, those of you in the indie space should take it as a good sign. The reason being EMI’s new moves are remarkably similar to an indie label’s natural behavior. Instead of sitting around like a fat cat with his eyes closed, eating whatever happens to jump into his mouth, EMI is going out on the prowl, observing, trying to understand behaviors and developing new strategies to engage face to face.

 EMI’s move is a good indicator that the environment is now more supportive of indie-style behavior than the native behaviors of the majors. It tells us that those companies that have struggled to survive on the outskirts for so long should now find the soil they’re standing on is suddenly the best in the land. In fact, EMI is helping to fertilize the land all the more by training fans to look for music away from the old familiar spots. If EMI succeeds in re-training their existing fans, those fans will become much more receptive to other independent sources.

 The land is ready for the independent community to explode. The herd is dividing and the Majors are no longer able to keep everyone within their hunting grounds. The Indie that recognizes the rules have turned in its favor has the opportunity to get very fat indeed.

A CRITICAL FIRST LOOK

(UPDATED) After several months of open rumors, EMI has relaunched its flagship web site as a music discovery destination.  While direct purchase will be enabled soon, the real purpose of the site is voyeuristic.  The company wants to watch and learn as consumers search for, discover, enjoy and purchase music from the EMI roster.

“It will help us gain even more knowledge about consumers’ preferences,”  says EMI exec Alex Haar. “Those insights will be invaluable to our artists, helping them respond to fans in a more relevant way. This is the beginning of a longer term experiment.”  The Welcome page reads:

This site is all about bringing you closer to the music and the music makers.

Pretty big ambition you say?

Well that’s why we see it as more of a journey than a destination, so we will be continually updating the site with improved functionality and new features.

Please bear with us, we are in beta, and don’t forget to give us your feedback.

FIRST LOOK: So far, the site is available only in the UK and US and offers an imeem-lite experience sans ads and with only EMI artists. Only those who register…

can “listen to music and watch videos, manage playlists and buy,” reads the FAQ, but the buy feature is not yet enabled.  UK songs streams are full length, but US visitors can only hear 30 seconds – a certain consumer turn-off. Widgets and other add-ons have been promised soon.

The web site was re-designed by Shamsa Rana, managing director of Imdad Capital Ltd, but the initiative is being driven by a new team of digital executives recruited from Google, Second Life and other tech companies.  Their goal is reshape EMI as competitive Music 2.0 company.

So far the site offers less than other music destinations.  But while it will need the bells and whistles to attract traffic, being the most cutting edge is not the goal.  Gathering data and observing the consumer online is.

New efforts may need to get speedier, however, than the months it took to launch this site.  The world economy is sliding, CD sales are tumbling and EMI’s own massive loan payments are looming. They will also need to get more aggressive with full song streams worldwide along with free downloads, exclusive offerings and more.

EMI has the roster, resources and new executive talent to be a leader. Their ability to turn this large ship and navigate the tricky tides of artist demands, rights holder restrictions and industry fears, as much as their own efforts, will determine if they succeed or fail. EMI.com cracks the door open. It’s time to kick the door down.

 

 

 

 

 

 

 

 

 

At a MusicTank conference on Tuesday night, I had a chat with Simon Wheeler, Director of Digital at Beggars Group, about what it’s like running an independent label in these changing times for the music industry. He said: “When it comes to negotiating deals with new digital ventures like Nokia Comes With Music and MySpace Music, we can’t compete with the majors when it comes to money and might. But we can compete when it comes to talent and signing great artists. And that is our main focus.”

Independents have always championed some of the most interesting acts, acts that have even defined genres. Maybe it’s because indies don’t have to report to stockholders. Maybe it’s because starting a label is so time consuming and expensive that you would only do it if you absolutely love music and the artists you sign. This is why indies tend to stick with their artists should a record fail to hit the charts.

At last month’s Musexpo, two of the most successful UK indie-label owners explained what drives them, and how they operate. Daniel Miller, president of Mute, put out his own electronic record, Warm Leatherette, during the punk era in 1978. “People think you’re a label when you put out a record. I didn’t think I was.” But as he started receiving more and more demos, the label developed organically. By the beginning of the 80s, Mute was home to bands that went on to redefine the English sound: Depeche Mode, Yazoo, Nitzer Ebb and Erasure.

“I like things I’ve never heard before and I only sign music that I like,” says Miller. “I’m lucky, cause there’s not much music I do like. My record collection is small. We went through years without signing an act in the middle of the 90s.”

Richard Russell, CEO of XL Recordings, concurs. “Not signing much is a good idea. The problem in this business is that too many records are put out. There can only be one great artist in every scene. Scenes tend to create a lot of mediocrity. To me, signing is instinctive. The more I think, the worse it gets. I’m not signing people for who they are, but for their potential. I have to believe in the person.”

XL (now part of Beggars Group) was launched by Russell, Tim Palmer and Nick Halkes in 1989 to release rave and dance music. They’ve now grown into one of the most commercially successful and influential independent record labels in the world, with artists like Adele, Basement Jaxx, Beck and White Stripes on their roster.

“The more interesting the acts are, the more difficult it is to get it on the radio. MIA, for example, doesn’t have a lot of craft. She’s all ideas and originality. The response we got when we put out her first single was extremely negative. Jack White, on the other hand, is all craft,” says Russell. “I am so drawn to misfits; people who don’t fit the mould.”

“Adele,” Russell continues, “more than any other of our artists, had strong views on starting big. And she knew how to do it. Liam Howlett (of XL act The Prodigy) is all instinct. There’s no analysis. He has a way of dismissing almost everything. But as long as you trust them, the most difficult artists are the easiest to work with.” No wonder Radiohead decided to go with XL once they had fulfilled their contract with EMI.

Russell says that he loves pirate stations and drives around every weekend to catch their broadcasts on his car radio. Somehow I can’t picture EMI chairman Guy Hands doing that. His record label announced during MusicWeek that they’ll be investing hugely in researching more about music fans and how they interact with music. They also want to “regain leadership in innovation of how music is experienced”, mentioning the iPod as an example of the kind of innovations they’d like to develop. How about focusing on finding and developing incredible, unique talent? I don’t think Beggars, Mute and XL Recordings have to worry about being pushed out of the business any time soon.

When Billboard arrived at EMI’s famed Capitol Tower in Hollywood to interview new recorded music CEO Elio Leoni-Sceti, we got a surprise: joining Leoni-Sceti were president of A&R for North America, the United Kingdom and Ireland Nick Gatfield and EMI’s worldwide president of digital Douglas Merrill. As the three lounged on couches in Leoni-Sceti’s U.S. office, they spoke with candor about the changes taking place at EMI.

And why not? For the first time in years, EMI appears to have some meaningfully good news to celebrate. During the six months ending Sept. 30, EMI Music posted earnings before interest, taxes, depreciation and amortization of £59 million ($88 million), swinging from a loss of £14 million ($21 million) during the same period last year, helped by stringent cost management and a 37% rise in digital revenue to £102 million ($152 million).

On Nov. 7, Leoni-Sceti announced the company would be reorganized into three new business units: catalog; music services, which will focus on sales, licensing and brand partnerships; and new music. This last unit includes Gatfield and Merrill, but its president will be Leoni-Sceti himself.

This last bit of news raised eyebrows, considering that the veteran marketing and branding executive had no prior music experience when he assumed the helm of EMI in September. Leoni-Sceti says the move is aimed at highlighting the importance of new music to the label, but adds he’ll leave artist signings to other executives.

“I will definitely not be out in the clubs until four in the morning,” he quips.
Read the interview here