Do you know, after yesterday I'm all EMIed out, but there's a bunch of EMI related stories that it would perhaps be negligent of us to ignore this morning.
All of this, of course, follows the formal announcement by EMI chief Guy Hands yesterday that he will slash back the major's workforce and roster by merging labels and creating one uber sales and marketing division. A severe but ultimately old school solution to fixing a struggling record company, though Hands continues to hint at the possibility of some innovations to turn round the firm's fortunes also, part of his bid to make the London based major "the world's most innovative, artist friendly and consumer-focused music company". To that end he spoke yesterday of "developing a new partnership with artists", suggesting "enhanced digital services" and "corporate sponsorship arrangements" as new areas where EMI may look to work with its artists
In an official statement on the matter the major highlighted four changes in particular: first the repositioning of EMI's labels to ensure they are completely focussed on A&R and maximise the potential of artists; second the bringing together of all the group's key support activities including sales, marketing, manufacturing and distribution into a single division with a unified global leadership; third, the elimination of significant duplications within the group to simplify processes and reduce waste; and finally that developing new partnerships with artists thing, partnerships that will be "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".
As for the roster cull, well, few details, except indications that we can expect many bands to be dropped. Hands told reporters it was "not sustainable" to maintain the company's current roster which, he says, includes some 14,000 artists globally. He said that the Terra Firma team's analysis of EMI's recent affairs has shown that new releases over all have lost money. The solution - get rid of consistently underperforming bands, and moving forward be more tactical in new signings, taking less risks, and moving away from the traditional major label approach of signing ten bands hoping one makes it big (though that latter point may, of course, be easier said than done).
As for jobs cull which, as reported yesterday, could surpass 2000, Hands said the new regime would conduct the downsizing in a transparent and fair way, though I don't know whether that provides any comfort to those facing the axe. Hands says: "Unfortunately in the past, the restructurings that have been done within EMI have not been seen as fair. This time we are determined to conduct the selection of who stays with fairness, honesty and respect for everyone as an individual. We will not be asking people to reapply for their jobs in a formal way". Again specifics of the jobs cuts are yet to confirmed, though, as previously reported, few are expected to come from EMI Music Publishing which is likely to carry on operating as normal. Music Week says sources have said UK EMIers should expect significant cuts over here, with up to a third of the jobs to go possibly within the UK division.
Before the cuts, one more senior player at EMI UK has reportedly left the major - Barney Wragg, who has led the firm's digital operations since 2006. Wragg's departure is not part of the 2000 jobs cull, and, in fact, word has it Terra Firma were keen to hold on to him, given the growing importance of digital in the music space, Wragg's definite credentials in this department, and his key involvement in EMI's popular move into DRM-free last year. However, according to Billboard, the new EMI top guard saw Wragg in an operational role at the head of its digital division, where as he was looking for a more strategic role. With far too much else to comment on, there has been no comment on this particular bit of news by EMI or Hands.
Finally in this department, the recently reunited The Verve are the latest band to express their concern at all the EMI shenanigans - or, rather, their manager Jazz Summers is. Like Robbie Williams management, Summers, another seasoned music manager, has said he is nervous of releasing The Verve's much anticipated comeback album through EMI while there is such turmoil. Now that Hands is actually talking a little more about strategy rather than just slagging everyone off, it will be interesting to see if the managers of the major's biggest artists - so far frustrated at being in the dark about the major's future - will be in anyway placated.