EMI the great UK company behind such artists as Queen, Radiohead, Pink Floyd and Beatles (OK Apple records but distributed through EMI) When Guy Hands’ Terra Firma turned up as the “winner” as to control EMI’s future for a tidy £3.2bn – the alarm bells were ringing (everywhere!!)
Music has always evoked passion, performance and innovation – When a Private Equity firm decides to buy a record label they are only after one thing – a decent return on investment.
Well unfortunately that isn’t going to be the case for Mr Hands and his Terra Firma company – well not by deciding that the age old problem with the industry is: wait for it – hold the front page.... BREAKING NEWS..... MUSIC INDUSTRY INSIGHT COMING...... “Digital Downloading!”
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Excuse me Mr Hands – erm... yes we all know that digital downloading is affecting the market – everyone has used that excuse for the past 5 years or so – whether legal or illegal downloading has had an impact. Change the record (no pun intended..) if you are a private equity firm that spends over £3bn in an industry that is struggling to make its next move you’d better have a better plan than “cutbacks”.
The lavish spending wasn’t really in the 90’s as they predict – look to the 70’s & 80’s for that – but that's where the industry is languishing – after vinyl, tapes, CDs, mini disc and a plethora of other failed media types – the industry has lived off the consumer for years with re-issues, re-masters, re-re-issues, tour editions etc.. no one fundamentally looked at where the "internet generation" and their world was heading and how this could be embraced.
With Robbie Williams an d Coldplay “considering” their future with EMI and realising that actually they no longer need the Private Equity style EMI – the future looks brighter for these stars more than ever. Look at the emerging technologies, broadband penetration and the lust for live performances and merchandise – it’s a brave new digital world out there – that requires a brave new digital thought leadership – and FAST!!!
If not by the end of the year – EMI will have nothing but distant memories of the good old days – and how it all went so wrong where that emotive and passionate music that has helped shape generations of people’s lives and memories becomes nothing more than a negative return within a Private Equity’s balance sheet!
There's always karaoke??? 