The new boss of EMI has reportedly questioned the necessity of the record industry having so many different trade associations, in particular questioning the need for major labels to be supporting all three of the US based Recording Industry Association Of American, the UK based BPI and the globally focussed International Federation Of The Phonographic Industry.
According to Billboard, Guy Hands has written to his counterparts at the other major record companies claiming that having the three trade bodies is costing the record industry $250 million and that he's "never come across an industry which spends so much on its trade associations". A source close to the EMI chief, meanwhile, told the trade magazine: "They've looked at it [the cost of the three associations] and suggested that that kind of expenditure, on having three bodies, might be rather more efficiently spent".
The consensus seems to be that Hands is initially proposing a radical overhaul of the IFPI to reduce the costs of the global body, and to avoid duplication between it and the US and UK trade bodies. IFPI chief John Kennedy has told Billboard that it comes as no surprise that the new EMI owners would want to review its commitment to trade associations, but added "I haven't seen any letter from Guy Hands". A spokesman for the IFPI added: "We are engaged in annual budget discussions and, as one would expect in this market, there is a focus on efficiencies and savings. Meanwhile we have a very full agenda promoting the rights of our member record companies".
Neither EMI nor any of the affected trade bodies have commented on the rumoured letter.