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De Niro
post 22nd February 2007, 06:03 PM
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http://www.telegraph.co.uk/arts/main.jhtml....xml&page=1

Is this the end of the superstar era?
Last Updated: 12:01am GMT 22/02/2007Page 1 of 3




Britney and Robbie may have problems, but it's the music business that's facing meltdown. Neil McCormick asks where the stars went, while insiders predict the future of music

Last weekend, Britney Spears, once American pop's cheerleading sweetheart, burst into a hairdresser, grabbed a razor and brutally shaved her head, muttering about people wanting to touch her.

Last week, Robbie Williams, the biggest-selling solo artist in UK music history, missed the Brit awards because he had entered rehab for addiction to prescription anti-depressants.

It is hard to imagine more graphic demonstrations of the toxic dangers of the modern fame game.

Yet, for the music business itself, the spectacle of pop stars on the verge of a nervous breakdown is just a sideshow, as the whole superstar system on which the industry has been constructed goes into meltdown.

From Elvis to Eminen, for 50 years the music business has brought us iconic figures whose worldwide impact has resonated far beyond the confines of pop radio, their music, imagery, fashions and personalities helping to define the times we live in. Bob Dylan, the Beatles, the Rolling Stones, Elton John, Led Zeppelin, Bob Marley, Bruce Springsteen, U2, Michael Jackson, Madonna - these were musical artists who achieved a kind of global cultural omnipresence.


You did not have to like their music to know who they were, or feel its effect.

But as the music industry struggles to come to terms with collapsing sales, diverging international markets and the internet-fuelled emergence of highly personalised and parochial buying patterns, is the era of the global musical superstar drawing to an end?

Mergers, profit warnings and cost-cutting at the ever-shrinking number of major labels (currently down to four: Universal, SonyBMG, Warners and EMI) have demonstrated that the music business is struggling to come to terms with the challenges of download distribution.

But there is more than just new musical delivery systems and the problems of piracy at play - there is a change in the whole culture of how music is consumed.

Last year, the BBC cancelled Top of the Pops due to a collapse in viewing figures. There is no centralisation of pop culture any more, no radio station, music magazine or TV programme that reflects and shapes the tastes of music lovers.

The internet has opened up a vast catalogue catering to all tastes and every age group. This encourages a highly personal soundtrack model of consumption, where you can load your iPod with everything you already like and never have to listen to anything you don't want to ever again.

It is the enemy of universality.

Consider the case of Arctic Monkeys. Last year was widely deemed to be "their" year. They had the fastest-selling British debut album of all time, won two Brit awards and will be headlining the Glastonbury festival this year.

But would you recognize them on the street? They had a peculiarly anonymous kind of success that did not overrun into wider popular culture in the way Oasis and Robbie Williams did in the UK in the 1990s.

Rising up through fan forums, they are only really popular with their own following. It seems to suit the band, but they are anti-stars, an invisible phenomenon. How do you sell that to the world?

The major record companies that have grown to dominate sales across the planet are high-overhead businesses built on a model where only one in 10 artists is successful, but a tiny minority sell in such vast quantities that they pay for everything else.

That model is now failing. Of the 100 best-selling albums of all time, only three have been released in the 21st century (and one was a compilation by the Beatles, the others being by Eminem and Norah Jones).

With the exception of Eminem, the biggest stars of the decade have been either US solo artists emerging from uber-glossy '90s manufactured pop (Justin Timberlake, Christina Aguilera, Beyoncé) or tasteful, sensitive (and often British) melodic pop-rock (Coldplay, Dido, James Blunt, Norah Jones). It is the rise of the middle-of-the-road.

In troubled times, these are the artists companies consider it safe to spend their marketing budgets on.

But while they can still sell in big (if diminishing) quantities, they lack the kind of challenging uniqueness that could send shockwaves rippling through the world at large. They lack superstar-sized charisma.

Perhaps as an intentional rejection of the superficial values of traditional showbusiness, much of modern pop culture (certainly in the UK) seems to have developed a strange kind of humility.

James Blunt, who had one of the biggest albums in the world in 2005, could probably travel on the Tube unmolested.

And while a non-rock fan might recognise Chris Martin, it would only be because he is married to a movie star. Identifying another member of Coldplay would be a stretch.

As for James Morrison, or the members of Keane, Snow Patrol and the Kooks, who are these people? It is an Everyman model of fame, the star next door. It is music without edges.

Yet the UK scene is as edgy, exciting and flamboyant as it has ever been, frothing over with exceptional talents from Amy Winehouse to the Guillemots.

People feared that the web would make everything homogeneous, but it seems to be doing the opposite. Attempts earlier this decade to promote American stars at the expense of local talent have foundered: there were only four US acts in the top 20 UK albums last year.

American idols (Justin, Christina and Beyoncé) failed to gain international sales to match their profiles.

Which is an interesting reversal, given that Britain's biggest stars of the past 15 years (Oasis and Robbie) proved unwelcome in America.

By promoting interactivity between audience and artist and making available music that corresponds to the particular interests of different types of people, the internet is actually making music more parochial.

The problems facing the international music business may, in fact, be an indication of the rude health of grassroots music. Lower recording costs and new distribution models mean more access for musicians and more choice for consumers, which means we are less dependent on the choices record labels make for us.

Declining CD revenues focus attention on other ways of making money, feeding into a boom in live music.

With lots of great music to choose from and many more musicians making a living through performance and independent sales, the old model, where only a tiny minority of musicians (as few as two per cent) enjoyed the benefits of fame and fortune, hardly seems worth defending.

Maybe, with hindsight, the first flourishing of the international music business from the '50s to the '90s will be seen as an aberration: the superstar era. Given the treatment meted out to the likes of Britney and Robbie, perhaps we should be glad it's over.

advertisementWhat those in the know say...

"In virtually every market in the world people have a desire to connect more with their own culture, and that has come at the expense of international stars. People got fed up being sold fluff. The barriers to entry are now collapsing all around, so it's easy for any artist to make their product available.

" The live sector is vibrant. It's cheap for an artist to record a few tracks, sell music at gigs, develop a fan base and promote themselves that way. Ten or 20 years ago, you had to go with a major label to have success but not any more. If there is another Bruce Springsteen out there, maybe he is doing it himself."

Paul Burger Founder of Soho Artists, artist management company focusing on world music. Formerly chairman of Sony Music UK and Ireland

"People listen to a greater variety of music than ever before, and are more demanding consumers. There have only ever been a few artists who made good albums. All too often albums got sold off the back of one killer single plus a lot of filler, but this is not possible any more, now that the consumer can choose individual tracks. It's all good for the music consumer, and for musicians it's a good time, too, because they can take charge of their music, distribute and promote it themselves for little or no cost.

"Musicians have traditionally made money by playing live, and that's not going to change. You cannot download the live experience. It's the real hard currency of the music business."

Martin Stiksel Founder of Last FM, an internet radio station and recommendation engine that tailors itself to the personal tastes of individuals

"While everyone is questioning the future of the music business, nobody questions the power of music. It is used to promote and sell just about every type of commodity and service, constantly. So it is just a question of how music is going to be distributed, consumed and paid for.

"Music publishers have had to spend decades remodelling and reshaping their businesses. They started off selling piano rolls, then sheet music, then recorded music took over and publishers had to learn how to license and monetise their rights. Record companies will have to acquire the same mind set, monetising and licensing their recorded music. Licensing, which the industry has long considered secondary income, will become the primary income."

Fran Nevrkla Chairman of PPL (Phonographic Performance Limited) & VPL (Video Performance Limited), non-profit music licensing bodies who collect performance royalties for musicians

"We have a generation coming through who don't think that music is something you pay for. It may not be good for the corporations, but, if you believe that the internet is a more democratic trading environment, there is a very healthy future for the music industry. New independents are forming all the time from the remnants of old corporate business, new shoots springing up from old wood."

Alison Wenham Chief executive of AIM, the Association of Independent Music

"Will the old corporations be here as we know them in five years time? No chance. Will music still be something people are making money out of in five years time? Absolutely. I think we're going back to the 70s again. Its all about being as entrepreneurial and independent as possible. The future is small. There are four big corporations at the moment, and there might be three in a year's time. But for music lovers it's never looked better. Roll on the '70s!"

Christian Tattersfield MD of 14th Floor Records (a joint venture deal with Warner Records, artists include David Gray, Damien Rice, Ray LaMontagne and Nerina Pallot) NMC
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De Niro
post 22nd February 2007, 06:03 PM
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Robbie and Madonna set to become stablemates
by Reuters on Thursday, 22 February 2007


Robbie Williams and Madonna will find themselves on the same record label if the Warner acquisition of EMI goes ahead.

Warner Music Group has made a bid approach for Britain's EMI despite uncertainty over whether any deal would win regulatory approval, in the latest twist in a seven-year tit-for-tat takeover battle.

EMI, which announced the move on Tuesday, said there was currently no proposal for the board to consider and no certainty that the approach would result in one, but the statement still sent its shares up 5.4 percent to 233-1/2 pence at 1140 GMT.

Analysts had speculated that EMI, the world's third largest music company and home to Robbie Williams and Coldplay, could receive a fresh takeover approach after it last week issued its second profit warning in just five weeks.


Warner, the fourth largest music major, has also struggled recently, reporting a 74 percent drop in quarterly profit due to its artists having fewer hits, and any tie-up would give both sides access to more artists and the ability to cut costs.

It would also help solve EMI's historical problem of having the smallest market share out of the four music majors in the United States -- the world's largest music market.

But any fresh attempt could run into the same regulatory problems that have hindered previous efforts.

"The regulatory outlook is still very uncertain," said Numis Securities analyst Richard Hitchcock. "But given how difficult the trading environment is -- U.S. physical sales are down 20 percent in the year to date -- they (Warner Music) will no doubt argue that the case for consolidation has been strengthened."

Analysts said any bid was likely to be pitched around 260 pence a share. Warner offered 320p a share for EMI last year.

EMI and Warner Music first tried to merge in 2000 and again in 2003. Last year, they were locked in a $4.6 billion battle to buy each other, but hopes of a deal were quashed in June when a European court annulled approval of the 2004 merger of Sony Corp's Sony Music and Bertelsmann's BMG.

That ruling cast doubt on whether EMI and Warner Music would get regulatory clearance, and the companies abandoned talks until there was more clarity from antitrust regulators.

The European Commission is now examining the refiled Sony-BMG application, which would create the world's number two music company, with a deadline of March 1.

By then, it could decide to either clear the deal, ask the companies to provide remedies to any competition concerns or open an in-depth investigation that would last 90 working days, with most analysts expecting the latter.

The music industry has struggled in recent years as the growth in legal downloading has not yet made up for the slide in physical sales but EMI's recorded music business has been hit particularly hard, with the poor performance of new releases such as Williams' "Rudebox".

All groups have been looking to grow their digital revenues. Barney Wragg, the former senior vice president of Universal music's digital division, told Reuters recently he had joined EMI because it was so focused on its digital business.

But according to analysts at Jupiter, it has some way to go as Universal, the world' number one music company, has been the most successful at growing its digital business, ahead of Sony BMG in second, Warner in third and EMI in fourth.

EMI said it would consider any proposal with "a particular focus on conditionality, the regulatory and operational risk profile, and on valuation in relation to the company's standalone value and the value creation available from a combination".

Panmure analyst Alex DeGroote said in a note that the announcement would likely alert private equity, who would be interested in the publishing side of the business, but that Warner was the most likely suitor due to potential synergies.

Media reports over the weekend suggested EMI was considering "re-engineering" its balance sheet by borrowing against the more reliable publishing side, and one analyst noted that this may have prompted Warner to act as any acquirer would want to go through that process themselves.
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De Niro
post 22nd February 2007, 06:04 PM
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EMI responds to rival's overtures


Katie Allen
Wednesday February 21, 2007
Guardian Unlimited


EMI, the UK music group, responded last night to an approach from rival Warner Music about a possible takeover. The company is understood to have told Warner it would consider a bid depending on the price offered and regulatory issues.

It emerged earlier that a tie-up could see Warner and EMI hand over major artists to independent record companies under an industry deal to boost smaller labels' market share. US-based Warner confirmed renewed interest in its ailing rival this week and announced a controversial pact securing the support of independents' lobby group Impala. It is thought a bid could come as soon as March.

Impala has derailed music mergers in the past but will support Warner in return for market-boosting measures and funding for a new digital licensing initiative.


Patrick Zelnik, the president of Impala, said today that Warner had agreed to give independents first refusal on some of the combined group's subsidiary labels and the artists that come with them. Warner, home to Madonna and My Chemical Romance, could be willing to dispose of EMI's Robbie Williams but declined to comment for now on what might be sold. Impala said it was too early to say which labels and artists would top its wishlist but Mr Zelnik insisted such transfers would benefit consumers. "It's about catalogues that are badly exploited. It's about musical diversity. And the point is to reinforce the market share of the independents."
The agreement also commits Warner to pursuing greater market access for independents in negotiations with software players such as Apple and Microsoft, Mr Zelnik said. Offline, it would mean better access for independents in supermarkets and stores, accused of narrowing choice and squeezing out small record shops.


Mr Zelnik is meeting Neelie Kroes, the European competition commissioner, on Friday and is confident the deal could be a precedent for more cooperation. Mr Zelnik, who also heads the French Naïve record label, said: "We mustn't be arrogant and claim to be magicians who have found some great solution. We have to discuss things with the commission. All we ask is the regulators do their job."


The commission is due to rule on the Sony-BMG music merger on March 1 and is expected to open a further investigation lasting months. Last summer a European court upheld an Impala appeal and struck out the commission's approval of the 2004 merger. Competition lawyers questioned whether Impala's support will improve Warner's chances, but the Impala chairman, Martin Mills, said tonight: "I think this removes a lot of the problems for the commission. Three strong majors and a strong independent sector is a much better situation for the industry than the one we find ourselves in now."

Warner, which clarified today that any bid would probably all be in cash, has been trying for seven years to buy EMI.
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De Niro
post 22nd February 2007, 06:06 PM
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EMI highlights regulatory concerns over Warner bid
By Kate Holton

LONDON (Reuters) - EMI has written to U.S. rival Warner Music to outline what its reaction would be to a bid and highlighting its concerns over regulatory issues, a source familiar with the matter said on Thursday.

Warner approached EMI about a possible bid at the end of January despite uncertainty over whether it would win European regulatory approval.

In the letter, EMI said it would consider any bid in terms of the price offered and whether it would be approved by European regulators.

Analysts have noted that EMI appears to be reluctant to engage with Warner at the current price and a media report on Thursday said the group was also in talks with a number of private equity firms as potential alternatives.

The company declined to comment on the report. Its shares were up 1.1 percent at 244 pence by noon.

The Financial Times said EMI had held talks with a number of private equity firms including One Equity Partners, a unit of JPMorgan Chase and Co. .

But the newspaper quoted people familiar with the discussions as saying no firm offers appeared imminent because Warner Music and would-be private equity suitors wanted the right to conduct extensive due diligence on EMI's business.

A spokeswoman for One could not be reached.

Warner Music, the world's fourth-largest music company and home to Madonna and the Red Hot Chili Peppers, said on Tuesday it had approached EMI after securing the support of Impala, the trade group for independent music labels which has previously challenged consolidation in the industry.

But any merger would still be heavily scrutinised by regulators. Warner could push ahead with the bid and accept responsibility for the regulatory risk as Vivendi's Universal Music did when it agreed to buy Bertelsmann's BMG Music Publishing last year.

That deal is still being examined by the European Commission, as is the 2004 merger between Sony Corp's <6758.T> Sony Music and Bertelsmann's BMG.

EMI, the world's third-largest music company and home to Robbie Williams and Coldplay, issued its second profit warning in as many months last week.

Analysts believe any bid for EMI is likely to now be pitched at around 260p although UBS analysts said in a note to clients they thought Warner could pay as little as 245 pence. Warner offered 320 pence a share for EMI last year.

Bridgewell analyst Patrick Yau said EMI appeared reluctant to entertain a bid from Warner at this level.

Analysts at ABN AMRO said any private equity bid was likely to be lower, at around 235 pence per share due to fewer synergies and already high levels of gearing in the recorded music business.

However the analyst said if "EMI (or private equity) were willing to split the group up, this rises to 260 pence, and compares favourably to our estimated bid value from Warner (c260 pence), without the associated regulatory risks."

Separately, the Times said Warner Music had secured private agreements from Goldman Sachs and Lehman Brothers to fund a 2-billion-pound-plus cash bid for its British rival.

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De Niro
post 22nd February 2007, 06:08 PM
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QUOTE(Scotty. @ Feb 22 2007, 06:08 PM) *
Warner, home to Madonna and My Chemical Romance, could be willing to dispose of EMI's Robbie Williams but declined to comment for now on what might be sold. Impala said it was too early to say which labels and artists would top its wishlist but Mr Zelnik insisted such transfers would benefit consumers. "It's about catalogues that are badly exploited. It's about musical diversity. And the point is to reinforce the market share of the independents."


This articles makes him out to be a product or a piece of meat rather than an actual person. rolleyes.gif

I definatly do not see him bein dropped. It is a ridiculous thing to suggest really and could only be suggested by people as clueless as the UK press. Robbie is EMI's cash-king, they depend on his success more than anyone else, hence why they gave him the biggest record contract in British music history. He makes an absolutely fortune for them, nearly 30 million albums alone sold with them since only 2002 when the £80m deal was signed. Not to mention the bucket loads of singles, dvd's, books and other merchandice he sells. And then their is of course the two mammoth tours he has done.

He is an extremly diverce artist, which are hard to find these days tbh. He can go from ballads, to upbeat pop tracks, from Swing to rap, from electro pop to rock. He can pull off anything and that is rare.

These moron joustnalists who spread this c**p that he might be dropped are only dreaming. They all have something against Rob and have more so than ever, in the past year so it is not a suprise they are suggesting such an insanely ridiculous thing that he would be dropped on the back of lower than usual sales of an album that got virtually zero promotion from Rob or EMI for that matter. Despite this it sold over 3m in three short months and is in fact the biggest selling album of 2006, by a solo artist outside the USA, so certainly nothing to mourn about.

The last 15 months have been the most successful in Rob's carear. He's had his best selling studio album to date with Intensive Care, a record breaking world tour where he played to over 3.5m people and an album that depite getting no promo and being extremly experimental, reaching #1 in 14 countries and becoming the fastest million seller accross Europe in 2006. However, if you were to choose to believe the Uk press, who seem to be under the impression that he is only successful in the Uk and if he gets lower than usual sales then his carear is over etc. It is complete and utter ignorance and would take an increadibly naive person to believe it all. But sadly there are alot of people that do believe it and do think he is finished etc. Even Intensive Care, depite selling over 1.6m in the UK, got slagged off by the press as being a flop and under-perfmorming, which was complete and utter madness.

The Swing is Rob's last album with EMI as far as I can see, so whenever he gets around to releasing it, he will then be free hopefullly. I just hope that EMI don't rush him in anything, that is the last thing that they need to be doing. They should not rush this Swing album for an xmas 07 release. Rob needs at least a year away from all of this to get himself sorted imo.
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De Niro
post 22nd February 2007, 07:03 PM
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From BBC

Warner planning cash bid for EMI


EMI has been disappointed by sales of artists including Robbie Williams


Warner Music has said any takeover bid for UK music group EMI is likely to be "solely in cash".
The comments from Warner - the world's fourth-largest music company - came a day after it announced that it had approached EMI about a possible bid.

EMI, which has issued two profit warnings this year, is the world's third-largest music group with artists such as Coldplay and Robbie Williams.

Both are battling a drop in physical music sales as downloads increase.

The two companies have also suffered as their artists have produced fewer hits recently.

However on Tuesday, EMI said that "no proposal" existed for its board to consider.

Offer price

Analysts have suggested that EMI is unwilling to hold discussions with Warner as the firm rejected a 320p a share offer last month.



Latest forecasts predict Warner will table an offer around the 260p a share level - EMI shares closed at 241.5p on Wednesday.

The latest approach continues the seven-year battle in which both firms have tried to acquire the other.

On Tuesday, Warner said it had approached EMI on 24 January regarding a deal, and saw "compelling strategic, commercial and financial logic" in a tie-up.

A merger of the firms would create a firm with about 25% of the global recorded music market, according to the International Federation of the Phonographic Industry (IFPI).

Attempts to merge EMI and Warner Music go back to 2000. Last year both companies made attempts to buy the other, but the moves collapsed following regulatory fears.

Analysts say the same regulatory issues could arise again.

Scrutiny

However, Warner has also said that it now has the support of Impala - the trade group for independent music labels that has opposed previous deals between the majors.

Industry watchers say that winning Impala's backing is a good move as it could help to dispel any criticism of the deal.

The European Commission annulled approval of the merger between Sony and Bertelsmann BMG last June, and soon after EMI and Warner ceased talks.

The European Commission is now looking once again at the Sony-Bertelsmann deal, which industry players will be closely watching.

Moves to consolidate the industry have increased as firms selling physical music have suffered lower sales with consumers accessing music in other ways, notably over the internet.

Last week, EMI said that profits for the year to March would be "significantly" below expectations, its second profit warning for the year.


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De Niro
post 25th February 2007, 02:07 PM
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thanks to TRWS

Fortress jumps onto EMI bandwagon
By Mark Kleinman, Sunday Telegraph
Last Updated: 12:10am GMT 25/02/2007



Fortress, the secretive investment group that recently became the first US hedge fund to go public, is among a pack of buyout firms circling EMI, the troubled British music company, this weekend.

Fortress, which raised $635m (£323m) in a New York listing earlier this month and has since seen its share price soar, is undertaking detailed work on EMI ahead of an approach to the record label of Robbie Williams and Madonna, according to people familiar with the situation.

EMI, which is reeling from two profit warnings in the space of six weeks, has already admitted to receiving a fresh approach from its American rival, Warner Music Group.

Apollo and One Equity, a private-equity firm linked to JP Morgan, are also showing interest. Permira, which was close to buying EMI for 300p-a-share in December, may also take another look.

It is possible none of the buyout firms will make formal approaches to the EMI board, led by John Gildersleeve, the chairman, and Eric Nicoli, the chief executive.

One of several previous sets of talks between EMI and Warner broke down last year after each made an offer for the other. The regulatory risk remains a key obstacle to any merger between the two music majors, although some clarity may emerge as soon as next week when the European Commission is expected to make an announcement relating to its inquiry into the merger of Sony and BMG's recorded music businesses.

Warner has sought to allay regulatory concerns by revealing it has support from Impala, the body representing independent record labels.

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De Niro
post 26th February 2007, 07:54 PM
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thanks to robstar at trws

Record labels lose out as bands become brands in fierce market
New roles are emerging for those closest to artists in a fragmented media world

Owen Gibson and Katie Allen
Monday February 26, 2007
The Guardian




The upheaval wrought on the music industry in recent years, of which EMI's latest travails are just the latest manifestation, have inspired a change in bedtime reading among senior executives. Their book of choice is now less likely to be a classic tale of rock industry excess such as Hammer of the Gods, but The Long Tail, a book about how the internet has brought about the death of shared culture.


The book, written by Chris Anderson of Wired magazine, sums up the challenges facing established media groups, including leading record labels: "At this point, the artists don't need the labels any more. The consumers don't need the labels any more and I think the labels, rather than trying to protect what business they have, need to ask themselves what is their relevance."
Although sales of CDs are falling sharply, British artists are riding the crest of a creative wave - live music has never been more popular, festivals are selling out in record time and brands are paying millions to associate themselves with up and coming acts. It is a new music marketplace where the artist's brand is becoming as valuable as their recorded output.

But for all the rhetoric about artists being able to build their own fan bases online, a guiding hand - not to mention substantial investment and knowhow - is still required to bring new artists to public attention in an increasingly fragmented media world. Many experts believe today's changes will result in individual artists emerging as "cottage industries" in their own right, much less dependent on labels to produce and market their music.

As the ancilliary revenues around each artist - from live appearances, merchandising, ringtones, advertising and licensing deals - become more important than dwindling recorded music royalties, new roles are emerging for those closest to artists. It is no coincidence that the likes of Island Records co-founder Tim Clark, who now manages Robbie Williams among others, and Creation Records founder Alan McGee now work in artist management.

Already, many majors rely on management companies to bring new artists to their attention. Now, some are starting to bypass them altogether. Mr Clark, who co-founded ie Music and was responsible for Robbie Williams' multi-faceted £80m contract with EMI, believes that deal could be the last of its kind. He likens the latest period of flux to the anything goes spirit of the 1960s before the major label consolidation of the late 1970s.


The company is pioneering a new form of investment in artists backed by Ingenious Media, the media-focused private equity fund launched last year by former Really Useful Group chief executive Patrick McKenna. Passenger, a new band who have been building local support in Brighton and release their first single today, are the guinea pigs for the new approach. Mr Clark is bypassing the big labels by going directly to Ingenious, which is putting up £1.3m to launch the band - investment matched by ie Music and external investors.

New model

Through the new financial model - dubbed Music Venture Capital Trusts - they claim that artists have more freedom and retain more of their own rights while their management are able to lavish care and attention on all aspects of an artist's career.

The artist retains ultimate control, they say, because managers tend to be employed on an annual contract.

"We work for our artists and we answer to our artists. At the end of the day, our artists can turn around and sack us," says Mr Clark. He says he "very nearly came to blows" with EMI over ie Music's determination to sign a global marketing deal with Sony Ericsson for Williams - a marriage that he says has been "incredibly successful". By being able to work with each part of an artist's "basket of rights", he claims to stand a better chance of building a long-term brand than a record label more concerned with short-term returns.

"That's why management is having more success in doing this because they recognise that basket of rights and they recognise the value of those rights," says Mr Clark.


Mr McKenna believes the majors should have cottoned on earlier: "I think it's one of life's great mysteries why record companies haven't embraced this 360 degree business model."

Bryan Calhoun, an Atlanta-based music consultant who works with Kanye West and Ludacris, is another who is thriving amid the music industry's shifting sands. He says artists are recognising how far they can leverage their brands and are going beyond what the major labels can offer them. Kanye West is signed to Sony BMG but has been working with Mr Calhoun's StrategusPro company on creating a fan community.

Strategy

"It's about builiding an entire digital strategy and the fan club is a part of it," says Mr Calhoun. "Ringtones and mastertones, those things are controlled by the major because that is who Kanye is signed to. But then he has also retained rights for exploiting his other content, voicetones, images, those kind of things," he says.

"A lot of people are looking to try to figure out exactly what they are going to do going forward and it doesn't necessarily have to do with the major labels."

Terry McBride, who runs Canadian music management group Nettwerk, also claims that bypassing major labels can allow artists to hold on to to more control. He helped Barenaked Ladies make $3m from 500,000 album sales, much more than they would have done if they had gone through a major label.

As major labels struggle to adapt to this new world, cutting costs and restructuring their business models, it is important to retain some perspective. Many employed by them retain enough faith to believe they will emerge from this transitory period stronger.

But the majority of those who stand to benefit from their potential demise, including Mr McKenna, believe the days of the major labels as we know them are numbered.

"I've always thought record companies believed they financed the music industry, manufactured and distributed pieces of plastic and did the marketing. The reality, in my view, is that I don't see them doing any marketing. And if manufacturing and distribution no longer count, then it's just the financing - and we can do that," he says.

Off the record

With the music market in decline, artists and their managers are increasing their focus on building brands that can deliver revenue streams beyond traditional record sales. Notable examples are rapper 50 Cent buying a stake in Glaceau Vitamin Water as part of his new super-healthy image. More recently, style-conscious Lily Allen announced she was teaming up with fashion chain New Look. London-based music consultancy Entertainment Media Research has tapped into the trend with a new tool called PopScores that tracks the awareness and popularity of 200 artists. So who's up and who's down? The Beatles bagged the highest score this month while Peter Andre got the lowest. Amy Winehouse was the biggest winner, according to the latest survey of 4,500 music consumers aged 13-59.

The PopScores tool can also show up changes in popularity following specific events in a star's life. Madonna's score dropped after her controversial adoption of a Malawian boy. More recently, Robbie Williams - who has checked himself into rehab - has been losing PopScore points, despite some offsetting effect from growing support among 40 to 59-year-old women. The service can also pick up longer-term consumer trends and PopScore's most recent analysis explores the rarity of female artists among top favourites lists. For male consumers there is only one female artist, Kylie, in their top 20. There are six in the equivalent list for female music fans: Pink, Kylie, Christina Aguilera, Gwen Stefani, Anastacia and Sugarbabes.

Katie Allen
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Sydney
post 26th February 2007, 10:03 PM
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QUOTE(Scotty. @ Feb 26 2007, 07:58 PM) *
thanks to robstar at trws

Record labels lose out as bands become brands in fierce market
New roles are emerging for those closest to artists in a fragmented media world

Owen Gibson and Katie Allen
Monday February 26, 2007
The Guardian


The upheaval wrought on the music industry in recent years, of which EMI's latest travails are just the latest manifestation, have inspired a change in bedtime reading among senior executives. Their book of choice is now less likely to be a classic tale of rock industry excess such as Hammer of the Gods, but The Long Tail, a book about how the internet has brought about the death of shared culture.
The book, written by Chris Anderson of Wired magazine, sums up the challenges facing established media groups, including leading record labels: "At this point, the artists don't need the labels any more. The consumers don't need the labels any more and I think the labels, rather than trying to protect what business they have, need to ask themselves what is their relevance."
Although sales of CDs are falling sharply, British artists are riding the crest of a creative wave - live music has never been more popular, festivals are selling out in record time and brands are paying millions to associate themselves with up and coming acts. It is a new music marketplace where the artist's brand is becoming as valuable as their recorded output.

But for all the rhetoric about artists being able to build their own fan bases online, a guiding hand - not to mention substantial investment and knowhow - is still required to bring new artists to public attention in an increasingly fragmented media world. Many experts believe today's changes will result in individual artists emerging as "cottage industries" in their own right, much less dependent on labels to produce and market their music.

As the ancilliary revenues around each artist - from live appearances, merchandising, ringtones, advertising and licensing deals - become more important than dwindling recorded music royalties, new roles are emerging for those closest to artists. It is no coincidence that the likes of Island Records co-founder Tim Clark, who now manages Robbie Williams among others, and Creation Records founder Alan McGee now work in artist management.

Already, many majors rely on management companies to bring new artists to their attention. Now, some are starting to bypass them altogether. Mr Clark, who co-founded ie Music and was responsible for Robbie Williams' multi-faceted £80m contract with EMI, believes that deal could be the last of its kind. He likens the latest period of flux to the anything goes spirit of the 1960s before the major label consolidation of the late 1970s.


The company is pioneering a new form of investment in artists backed by Ingenious Media, the media-focused private equity fund launched last year by former Really Useful Group chief executive Patrick McKenna. Passenger, a new band who have been building local support in Brighton and release their first single today, are the guinea pigs for the new approach. Mr Clark is bypassing the big labels by going directly to Ingenious, which is putting up £1.3m to launch the band - investment matched by ie Music and external investors.

New model

Through the new financial model - dubbed Music Venture Capital Trusts - they claim that artists have more freedom and retain more of their own rights while their management are able to lavish care and attention on all aspects of an artist's career.

The artist retains ultimate control, they say, because managers tend to be employed on an annual contract.

"We work for our artists and we answer to our artists. At the end of the day, our artists can turn around and sack us," says Mr Clark. He says he "very nearly came to blows" with EMI over ie Music's determination to sign a global marketing deal with Sony Ericsson for Williams - a marriage that he says has been "incredibly successful". By being able to work with each part of an artist's "basket of rights", he claims to stand a better chance of building a long-term brand than a record label more concerned with short-term returns.

"That's why management is having more success in doing this because they recognise that basket of rights and they recognise the value of those rights," says Mr Clark.


Mr McKenna believes the majors should have cottoned on earlier: "I think it's one of life's great mysteries why record companies haven't embraced this 360 degree business model."

Bryan Calhoun, an Atlanta-based music consultant who works with Kanye West and Ludacris, is another who is thriving amid the music industry's shifting sands. He says artists are recognising how far they can leverage their brands and are going beyond what the major labels can offer them. Kanye West is signed to Sony BMG but has been working with Mr Calhoun's StrategusPro company on creating a fan community.

Strategy

"It's about builiding an entire digital strategy and the fan club is a part of it," says Mr Calhoun. "Ringtones and mastertones, those things are controlled by the major because that is who Kanye is signed to. But then he has also retained rights for exploiting his other content, voicetones, images, those kind of things," he says.

"A lot of people are looking to try to figure out exactly what they are going to do going forward and it doesn't necessarily have to do with the major labels."

Terry McBride, who runs Canadian music management group Nettwerk, also claims that bypassing major labels can allow artists to hold on to to more control. He helped Barenaked Ladies make $3m from 500,000 album sales, much more than they would have done if they had gone through a major label.

As major labels struggle to adapt to this new world, cutting costs and restructuring their business models, it is important to retain some perspective. Many employed by them retain enough faith to believe they will emerge from this transitory period stronger.

But the majority of those who stand to benefit from their potential demise, including Mr McKenna, believe the days of the major labels as we know them are numbered.

"I've always thought record companies believed they financed the music industry, manufactured and distributed pieces of plastic and did the marketing. The reality, in my view, is that I don't see them doing any marketing. And if manufacturing and distribution no longer count, then it's just the financing - and we can do that," he says.

Off the record

With the music market in decline, artists and their managers are increasing their focus on building brands that can deliver revenue streams beyond traditional record sales. Notable examples are rapper 50 Cent buying a stake in Glaceau Vitamin Water as part of his new super-healthy image. More recently, style-conscious Lily Allen announced she was teaming up with fashion chain New Look. London-based music consultancy Entertainment Media Research has tapped into the trend with a new tool called PopScores that tracks the awareness and popularity of 200 artists. So who's up and who's down? The Beatles bagged the highest score this month while Peter Andre got the lowest. Amy Winehouse was the biggest winner, according to the latest survey of 4,500 music consumers aged 13-59.

The PopScores tool can also show up changes in popularity following specific events in a star's life. Madonna's score dropped after her controversial adoption of a Malawian boy. More recently, Robbie Williams - who has checked himself into rehab - has been losing PopScore points, despite some offsetting effect from growing support among 40 to 59-year-old women. The service can also pick up longer-term consumer trends and PopScore's most recent analysis explores the rarity of female artists among top favourites lists. For male consumers there is only one female artist, Kylie, in their top 20. There are six in the equivalent list for female music fans: Pink, Kylie, Christina Aguilera, Gwen Stefani, Anastacia and Sugarbabes.

Katie Allen



------------------------------------------------------------------------------------------------------------------------
The TimesNovember 10, 2006

F, 33, likes Robbie and shopping
A new technology can show you how to get to No.1. First lesson, woo Supermarket Woman, learns Pete Paphides

So much, then, for 50 Quid Bloke — the fêted demographic avatar who sprang fully formed in the aftermath of the iPod, determined to reconnect with the guitar music of his youth and all the new stuff that appears to be influenced by it. He might dig the Killers and Snow Patrol, but research increasingly shows that the added buying power of his missus — Supermarket Woman or MP-She, as the industry is calling her — determines whether those bands sustain any lasting popularity in pop’s premier league.
The figures tell the full story. In the past 12 months women aged 16-45 have driven a 150 per cent increase in digital music sales. Recent findings by Emap reveal that an unprecedented half of Q’s readership under the age of 30 is now female. Were further proof of Supermarket Woman’s emergence needed, behold the success this summer of James Morrison — a man whose resemblance to Chris Martin in a James Blunt wig suggests that Polydor is now building androids to satiate the desires of thirtysomething females. With supermarkets muscling in on the CD market — and those supermarkets still predominantly patronised by women — there’s a killing to be made.

What we suspected by looking at the charts is laid out in maths when I arrive at the Covent Garden offices of Entertainment Media Research, whose new “product”, PopScores, is likely to become the most valuable tool that record companies have yet had to understand the relationship between musicians and consumers. Before me on a computer screen are October’s PopScores, on which are listed 200 artists and their monthly ranking, gauged according to what people across the demographic spectrum think of them. “Keep going down the list,” says Russell Hart, Entertainment Media Research’s executive chairman. “Every one of the top 20 scores highly with women over 30. In 2006 it’s an absolute requisite for any band seeking to succeed at that uppermost level that they appeal to that sector.”

He’s right. Lodged firmly atop the graph are Red Hot Chili Peppers, who nick it over U2. In fact, the Californian funk-rockers score well with every audience sector.

Below them are Kaiser Chiefs, Robbie Williams, Scissor Sisters and Bon Jovi, their “informed awareness” score among women uniformly high. On the basis of these findings, Arctic Monkeys (currently scoring poorly with women aged 30 to 39) are still a exfoliation regimen away from super-stardom. A month into its existence, Popscores has had a massive industry take-up. By measuring the emotional connection that a listener has to an artist, its creators say that it fills “a critical information gap for the music industry”.

What, specifically, does that “gap” amount to? Previously, the assumption has been that if a group gets their songs played on the radio, this will drive album sales. It’s an assumption, however, that fails to explain why certain albums simply don’t sell, regardless of press and radio exposure. Gnarls Barkley’s St Elsewhere, for instance, has yet to take off, despite spawning the year’s bestselling single, Crazy. PopScores makes light work of explaining why, showing that while 74 per cent of music consumers have heard them, only 7 per cent cite them as a favourite. As Hart surmises: “People don’t know if Gnarls Barkley is a band or a person (it is, of course, the producer Danger Mouse and rapper Cee-Lo). Without knowing the brand’s core values, there’s no chance of an emotional connection.”

Staring at this sort of information can make a person feel oddly powerful. I start to fancy myself as a marketing troubleshooter, wondering how certain areas of potential might yet be maximised. I wonder what it is about the Red Hot Chili Peppers that makes them succeed over U2. If Bono had a drug history comparable to Chilis’ front man Anton Kiedis and greater skater appeal, would he score a little more highly with young people? Suddenly I see cynical motives in decisions that, for all I know, were probably made only in the interests of creativity. That new single by U2 and Green Day — was it really just to raise awareness of Hurricane Katrina? Or maybe a sneaky attempt to win favour in demographic areas where those groups lack popularity? Market research is no stranger to the music industry, of course. By making a note of who was coming into his record shop and buying Beatles records, Brian Epstein was conducting a primitive form of market research. The track listing of The Best of Blur in 2001 was determined by focus groups.

In recent months sales of the debut album by a young British guitar band have leapt from 700,000 to 1.2 million. The decisive factor? Research revealed that their image — that of unwashed indie cubs — deterred older consumers. This triggered a marketing rethink. Photographs often have a polarising effect, especially in the case of pop groups seeking the respect of a mature audience. In 1992 the absence of a cover image on Abba Gold was key to the band’s revival. This week, with nary a pop minx on its sleeve, Girls Aloud’s hits compilation, The Sound of Girls Aloud, was their first album to enter the charts at No 1.

The best-known “product” developed by Entertainment Media Research is “artist profiling”. This involves research to see if an artist is reaching his or her intended audience. Hart tells of a British R&B singer whose second album failed to deliver on the promise of his first. “Research showed that his appeal with female fans remained strong, but his attempts to woo male urban listeners had failed. Future singles were chosen accordingly, and the press campaign changed to consolidate his existing fanbase. The results were immediate.”

Songwriters at the mercy of focus groups? Is this the way forward? Well, yes and no. Hart points out that, in a climate where records no longer sell in the same quantities, “the old way of doing things is simply not possible. You can’t sign ten artists knowing that one will be successful enough to bankroll nine flops.” In other words, albums need to be road-tested before emerging into the wider world.

However, there is, of course, one problem to be overcome here — one ripely articulated by ABC’s front man, Martin Fry. In 1983 ABC followed the acclaimed “new pop” of The Lexicon of Love with an obtuse musical suicide note entitled Beauty Stab. Had artist profiling been around then, it would surely have prolonged their run of Top Ten hits? “You’ve got to respect the right of creative people to make creative decisions,” Fry says. “For us, it was death or glory.”

How would the Beatles, the group against which all groups will for ever be measured, have fared in a world where MP-She and PopScores set the commercial agenda? Would George Martin have been charged with the responsibility of getting Paul McCartney to write a few more Yesterdays in pursuit of a million extra impulse purchases at the checkout? “Actually, no band did it better than the Beatles,” says Peter Ruppert, the founder of Entertainment Media Research.

“They started off doing simple rock’n’roll and changed their sound from album to album by small increments — thereby not alienating a large proportion of their fanbase in one go.”

If this is the only option for an artist hoping to stay popular, yet to develop artistically, then presumably the transition made by Robbie Williams from last year’s Intensive Care to the electropop whimsy of his current album, Rudebox, should have taken place slowly over three albums.

Fry, however, remains sceptical of the way record companies might use the data. “One thing we like about musicians is that they make mistakes,” he says. “Sometimes an artist can make an album that might not be appreciated for years. Trying to ensure that you’re popular for the next ten minutes isn’t necessarily going to leave you with any admirers in 20 years’ time.”

Find out the nation's musical taste in popscore, points from -50 to 100

Females 13-19 yrs

1. Robbie Williams 61

2. Red Hot Chilis 51

3. Madonna 50

4. Scissor Sisters 50

5. Anastacia 47

Must try harder:

P Diddy -9

Females 30-39 yrs

1. Kelly Clarkson 53

2. The Killers 50

3. Pink 49

4. Christina Aguilera 48

5. Rihanna 47

Must try harder:

Il Divo -7

Males 13-19 yrs

1. Red Hot Chilis 58

2. The Killers 46

3. Gorillaz 44

4. Green Day 42

5. Kaiser Chiefs 41

Must try harder:

Westlife -20

Males 50-59yrs

1. Eric Clapton 65

2. Rolling Stones 58

3. Rod Stewart 52

4. David Bowie 51

5. U2 48

Must try harder:

P Diddy -6

Females 50-59 yrs

1. Robbie Williams 59

2. Eric Clapton 55

3. Elton John 50

4. Will Young 50

5. Bon Jovi 49

Must try harder:



Notice that the last portion of the article in the Guardian today is called OFF THE RECORD ( mainly about Popscores & how it works ) they manipulates it a bit of course... and they were a small bit lazy as to where they came up with that information... I found it in the above article written in The Times in November 2006... & did they think that we would think that they knew it all ...no /....we are not that silly. I have a fairly good memory & knew that I had read that text somewhere before. They just copied & pasted it on to the end of the news article today & never mentioned the Times. I would love to send it to the Times myself.......Plagarism again....
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Ricky
post 26th February 2007, 11:40 PM
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what you just said; I am already forgetting - Lena
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Warner have an agreement with YouTube to allow Warner video's to be used on YouTube. If Warner buy EMI this should see the safety of Robbie's video on YouTube.
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Supreme
post 27th February 2007, 10:47 PM
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omg....Im gonna need some spare time to read all of this! happy.gif
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De Niro
post 28th February 2007, 06:01 PM
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QUOTE(e-motion @ Feb 26 2007, 11:44 PM) *
Warner have an agreement with YouTube to allow Warner video's to be used on YouTube. If Warner buy EMI this should see the safety of Robbie's video on YouTube.


Really? Well that is a good thing in that case biggrin.gif
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De Niro
post 1st March 2007, 10:09 PM
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WMG Bid On EMI Could Come Soon

March 1, 2007

Warner Music Group (WMG) is reportedly very close to making a formal bid to take over EMI. After approaching EMI about a possible deal last week, WMG management is now putting the finishing touches on a £2 billion bid that could come as early as today, according to U.K. Web site This Is Money. Sources told This Is Money that Warner's board met on Tuesday night to "dot the i's and cross the t's" on the offer, but another source said Warner's bid was "potentially" imminent, but the situation was changing by the hour.

Despite the fact that European regulators are going to launch an in-depth probe of the Sony BMG merger, which could result in the two companies having to unravel, WMG has said it feels confident that the EMI takeover would be allowed because the company has support from the Independent Music Publishers and Labels Association (IMPALA). "If WMG were to make an offer for EMI within the meaning of the U.K. Takeover Code, WMG has agreed with Impala, subject to the closing of such an offer, to implement certain measures," WMG said in a statement. Those measures include providing funding for the Merlin initiative, a new global digital rights licensing platform established by independent labels; ensuring the divestiture of certain recorded music assets to reinforce the market power of the independent sector; and pursuing other commitments which will benefit the music market as a whole and, in particular, the independent music sector.

EMI previously said that if a formal bid was made by WMG, "it will be considered with a particular focus on conditionality, the regulatory and operational risk profile, and on valuation in relation to the Company’s stand alone value and the value creation available from a combination."

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post 1st March 2007, 10:10 PM
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EMI dealmaker joins Sony/ATV
By Joshua Chaffin in New York and Andrew Edgecliffe-Johnson in London

Published: February 27 2007 22:25 | Last updated: February 27 2007 23:12

Martin Bandier, the executive who built EMI’s music publishing business into the industry’s largest, has jumped to Sony/ATV, positioning the owner of the Beatles catalogue to become a more aggressive bidder for other such assets.

His move comes weeks after Warner Music made a renewed approach for EMI. If it succeeds, Warner would be forced to sell all or most of one of the two publishing arms to satisfy regulators, providing Mr Bandier with an opportunity to transform the Sony/ATV catalogue.

Sony had shown little appetite for content deals since putting its recorded music company into a joint venture with Bertelsmann. On Tuesday, however, Sir Howard Stringer, Sony’s chairman, said the appointment sent “a strong signal about how serious we are about music publishing”.

Sony/ATV is a 50:50 joint venture between the Japanese electronics group and Michael Jackson, the pop star. Mr Bandier, who will become chairman and chief executive, will also invest an undisclosed amount in the company, which will allow him to share in the group’s future growth.

Sony’s push to recruit Mr Bandier is another indication of the appeal of music publishing at a time when the record industry is suffering a slump in CD sales.

Music publishers have remained buoyant by collecting small royalties when their songs are used in films, mobile phone ringtones, advertisements and other outlets. Universal Music paid $2.1bn for BMG’s music publishing arm.

Mr Bandier said he could not comment on EMI for legal reasons, but added: “Sony ATV is in the music publishing business and while I’m there, we’d look at anything that made economic sense.”

Other possible acquisitions could include Famous Music Publishing, which Viacom recently said it would consider selling, and Mr Jackson’s share of Sony/ATV.

The industry has been rife with speculation about Mr Bandier’s next move. Before joining Sony/ATV, he held talks with Edgar Bronfman, Warner’s chief executive, and met several private equity firms interested in EMI and its publishing assets.

Mr Bandier said he decided to join Sony/ATV because of the opportunity to grow the business, which ranks fourth by market share and includes hits from the Beatles and Bob Dylan.

People close to Mr Bandier said he was enticed by the fact that Sony/ATV does not report to a larger recorded music division since Sony held it out of Sony Music’s merger with BMG.

Separately, Warner Music’s move to secure support from independent labels for an EMI deal was undermined on Tuesday when lawyers for Ministry of Sound demanded that the UK’s Association of Independent Music disclose correspondence about the deal between Warner and Impala, the independents’ European lobby group.

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post 2nd March 2007, 06:46 PM
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EMI rejects proposal from Warner
Music company says offer too low
By BLOOMBERGEMI Group Plc,

The world's third- largest music company, rejected a 2.1 billion-pound ($4.1 billion) takeover proposal from Warner Music Group Corp., saying the offer was too low.
Warner offered 260 pence a share in a non-binding proposal, London-based EMI said in a PR Newswire statement today. The bid was 10.3 percent higher than yesterday's closing price for EMI.

EMI and New York-based Warner Music abandoned $4.6 billion offers for each other in July on concern a combination would be blocked by European Union regulators. Since then, music revenue at both companies has slumped as piracy eroded the market for compact discs and releases by Robbie Williams and My Chemical Romance had disappointing sales.

Shares of EMI gained 10.5 pence, or 4.5 percent, to 246.25 pence in London. Before today the stock had dropped 11 percent this year. Warner shares rose as much as 59 cents, or 3 percent, to $20.17, and traded at $19.91 at 11:49 a.m. in New York.


Contracting Market


The combined company would have a quarter of the global market, moving ahead of Sony BMG to rank behind Vivendi SA's Universal Music Group. In December, EMI ended talks to be acquired by buyout firm Permira Advisers LLP, after failing to agree on a price.

The North American market for compact discs has contracted 20 percent this year, EMI said last month, citing Nielsen Soundscan figures.

EMI, which released albums by Robbie Williams and Norah Jones in the second half, said Feb. 14 it was experiencing an "unprecedented level of market decline'' and "an exceptionally high level of product returns.''

EMI ousted its top two music executives, Alain Levy and David Munns, on Jan. 12 after disappointing holiday sales. Eric Nicoli, then chairman, was named chief executive officer.

Warner, under Chief Executive Officer Edgar Bronfman Jr., said Feb. 8 that sales of recorded music slid 13 percent in the quarter ended Dec. 31. Demand for new releases fell short of the year-earlier period, when the company had new albums from Madonna, James Blunt and Enya, Warner said.


Regulator's Review


The two companies backed away from attempts to combine last year, after a July 13 ruling by European Court of First Instance in Luxembourg cast doubt on whether a merger would win approval.

The court threw out regulators' approval of the merger that created Sony BMG in 2004, saying the European Commission, the EU's Brussels-based antitrust regulator, had only carried out "an extremely cursory examination'' of the effects of the merger. The court ordered the watchdog to review the transaction again.

EMI's Nicoli, 56, has tried since 2000 to buy Warner, the world's fourth-largest music company, as a way to reduce costs.

EMI and Warner dropped efforts to merge in 2000 after regulators opposed the plan. EMI's attempt to buy Bertelsmann AG's BMG unit in 2001 was also stymied by regulators. EMI again failed to combine with Warner in 2003, when a group led by Bronfman won the bidding for Time Warner Inc.'s music unit.

EMI has two divisions: EMI Music, the recorded music unit, and EMI Music Publishing, which manages song copyrights. EMI said last month that the publishing unit "continues to perform in line with expectations.''

The U.K. company reported a first-half loss of 30.6 million pounds in November, saying sales fell 6.1 percent because this year's release schedule is weighted to the second half more than usual. EMI's fiscal year ends March 31.

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post 4th May 2007, 05:41 PM
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EMI shares up 8 pct on takeover approaches
http://www.reuters.com/article/bondsNews/idUSWLA827820070504

LONDON (Reuters) - British music group EMI, home to Robbie Williams and Coldplay, said on Friday it had received a number of takeover approaches, after a report that private equity firm One Equity Partners had joined the list of suitors.


EMI Group Plc, which rejected a 2.1 billion pound ($4.2 billion) bid proposal from long-time suitor Warner Music in March, declined to say how many approaches it had received or who they were from.
Earlier on Friday, the Financial Times newspaper, without citing sources, said One Equity Partners had approached EMI with an offer that could value the world's third-biggest music group at more than $6 billion.


One Equity Partners, a unit of JP Morgan Chase and Co, could not immediately be reached for comment.


"Further to recent speculation, EMI Group Plc confirms that it has received a number of preliminary indications of interest to acquire the company," EMI said in a statement. "There can be no certainty that any offer will ultimately be made."


EMI has issued two profit warnings this year and is trying to revive its flagging music business with a far-reaching restructuring program.
The music industry has been damaged in recent years by Internet piracy and falling CD sales, but EMI has also suffered from a lack of big hits recently and the poor performance of new releases such as Williams's "Rudebox" album.


EMI and Warner Music, the world's fourth-biggest music group, have been in a tit-for-tat takeover battle for much of the past seven years.
EMI shares closed at 227-1/2 pence on Thursday, well below Warner Music's latest proposal of 260 pence a share, and valuing the business at about 1.8 billion pounds.

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post 7th August 2007, 09:58 PM
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EMI CD sales plummet to tune of 20%
The Times Online

EMI, the record label taken over last week for 2.4bn by private equity, continues to underperform its peers

EMI, the embattled record label bought for 2.4 billion by private equity last week, today said that sales of CDs plummeted 20 per cent in the first quarter.


The trading statement, which showed overall revenues down 5 per cent from the same period a year ago, in line with expectations, confirmed that the company behind artists including Madonna, Coldplay and Robbie Williams continues to struggle against its peers.

It came just days after Terra Firma, the private equity group run by Guy Hands, won control of the label amid a global debt crisis that had threatened to derail the highly-leveraged deal.

The latest trading statement showed CD sales at EMI falling at more than twice the average industry rate. The company said that a light release schedule was to blame.

Music revenues fell by 13.4 per cent in the quarter. EMI added that it had been the victim of difficult market conditions, as a 26 per cent surge in digital revenues failed to offset plunging physical sales.

Revenues at EMIs publishing arm grew 12 per cent on a constant currency basis, partly on the back of litigation settlements.

Terra Firma won control of EMI last week after clinching 90 per cent of the company's shares.

The private equity firm had first announced the agreed takeover for the Beatles' record label in May. However, fears escalated at the eleventh hour that the turmoil in the global credit markets risked trashing the sale of the third-largest music group.

It is understood that the 90 per cent shareholder approval had been demanded by Citigroup, Terra Firma's financial backer, for the banking giant to commit more than 2 billion in funding to the deal.

EMI added in its statement that it had seen "encouraging" early revenue indications from its venture offering digital music without anti-piracy software on Apple's dominant iTunes online music store.

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De Niro
post 7th August 2007, 09:58 PM
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"God have mercy on the man who doubts what he's sure of
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Do they ever stop losing money? They are so useless laugh.gif
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Jupiter9
post 7th August 2007, 10:19 PM
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I haven't bought a CD in months. There is nothing out there that remotely interests me. sad.gif
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De Niro
post 7th August 2007, 10:23 PM
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I'm the very same. Hav'nt bough a CD since Mika, an album which I got so sick of I have'nt heard it is so many months. laugh.gif


Oh and the Arctic Monkey album, but that was brilliant.
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