MusicTank Newsletter - Jan 08

Troubled major EMI and its near ubiquitous new chief Guy Hands have, to put it mildly, featured pretty high on the news agenda of late. Last week’s announcement finally gave specific details of the long-awaited shake-up, with 40% staffing cuts (1500-2000 jobs worldwide), reduced marketing budgets and some profound structural changes all due to implemented within coming months.

In addition, Hands has stated an intention to cut much of EMI’s 14,000-strong artist roster, many of whom don’t turn a profit. Offloading the underperforming and non-profitable artists will however be a walk in the park compared to EMI’s main challenge: retaining the services of the big-earners.

The last six months have already seen a number of high-profile departures, with Macca, Radiohead and now possibly the Rolling Stones all leaving for pastures new, and Coldplay, Robbie Williams, Kylie and The Verve all concerned about the label’s ability to handle their releases going forward.

In addition to questions about churn and organisational effectiveness, managers of leading EMI-signed artist managers have other issues on their agenda, neither of which are peculiar to that major.

The first concerns the growing pot of label income that is not being accounted for – from filesharing settlements to blanket deals with the likes of YouTube and Zune.  For many this holds the key to the better partnerships with artists to which Guy and others allude – more on this at our 5th February think tank: Deal Or No Deal? The Great Artist/Label Trade-Off.

The second is one which Mr hands himself feels passionate about and over which EMI may resign its membership of the IFPI – namely a genuinely progressive digital strategy.  “I have a very, very strong view that we can’t cajole and sue our customers into buying music”.

While he’s clearly not alone on that, the need for decisive action is greater now than ever before. Speaking recently at the launch of the government consultation on the Gowers Report, intellectual property minister Lord Triesman said it was the government’s view that ISP’s and copyright holders and creators should work to reach a voluntary agreement, and if no such agreement is achieved by the end of this summer, then the government would legislate.

It appears the time has now come to firmly accept the cultural shift that technology has brought about. Let’s work with this digital reality, and give the vast majority of decent music fans an easy, legal option.  Especially when enhanced encryption, non-standard routing, private networks, email, IM and hard-drive swapping all suggest the genie’s not going back into the bottle.

Lord Triesman’s hopes are echoed by people across the industry and are being worked towards, presumably with some form of blanket licence for filesharing as the ultimate goal.  And while signs from ISPs and mobile networks suggest they are ready to come to the table, we really ought to make it easier to license our music - the notion of a Joint, Joint Online Licence as brought up by Will Page in our last think tank appeals in all but name. 

So how will any licence monies be split according to usage?  The good news is that in search term tallies, waveform reading and metadata identifiers, we already have the necessary technology. All we need is more teamwork, plenty of hard work and a commitment to shaping the future of music consumption.

Editorial by Sam Shemtob & Jon Ramsay

MusicTank welcomes
articles, opinion pieces and contributions for publication
in our newsletter or our
website. Get in touch!
info@musictank.co.uk

Previous newsletters

Programme of events

Event podcast

Members can now catch
the events online, listen
and download the MP3s
or text transcripts.

Scroll down for:

OUT & ABOUT: MusicTank events

JOE POX: Guy Hands' Vision

INDUSTRY DIARY: Other industry events

MERRY-GO-ROUND: Announcements

MUSICTANK LOUNGE: New site content

Please remember all MusicTank events MUST be booked and paid for in advance!  Become a member of MusicTank and enjoy priviledged discounts on all MusicTank events...

http://www.musictank.co.uk/about/membership-benefits

5th Feb '08: DEAL OR NO DEAL? THE GREAT ARTIST/LABEL TRADE-OFF

“We need to enter into a new relationship with our artists, where they see us as partners rather than the enemy."  - Ged Doherty, Chairman & CEO Sony BMG, 2007.

"We need a relationship with our artists based on a true partnership, in which we jointly share both the risks and the benefits."  - Guy Hands, EMI, 15 January 2008.

Building on last December's sell-out think tank, this session will further explore the redefinition of the artist-label relationship - would 360 models become more attractive if labels took another look at unattributable recording income?  Would a movement towards 360, where labels benefit in multiple areas of an artist’s career (thus spreading the risk of their investment), mean they take a more progressive view of revenue distribution in “non-traditional” channels?  Would managers be more willing to enter artists into 360 deals if they knew concerns over non-attributable income were to be addressed?

SPEAKERS - Keynote: Mike Smith (MD, Columbia Records); Panel incl: Antony Bebawi (EMI Music Publishing UK), Adrian Bullock (Auditor, Bullocks Ltd), Chris Morrison (CMO Management Ltd), David Stopps (FML), others tbc.

DIARY - Date: Tue 05 Feb '08; Venue: MCPS-PRS Alliance, Berners Street, London; Time: 18.30 - 21.00hrs.

Price: £20 MusicTank Members | £25 Trade Body Discount | £30 Full Price.  Tickets include drinks.

FULL DETAILS -

http://www.musictank.co.uk/events/deal-or-no-deal-the-great-artist-label-trade-off

Bestriding the recorded music industry, looking like Napoleon Dynamite in a nylon suit, Guy Hands has finally unveiled his 'brave new' vision for EMI. Which seemingly involves sacking 30% of the staff, driving out the most popular label executive in the country (Tony Wadsworth), upsetting the managers of every big act left on the post-Radiohead label and treating the artists themselves as if they were in Victorian times by forcing them up the chimneys for 23-hour stints every day.

If that's his vision, I fear he might have cataracts. Yes, it's true that EMI was in need of a shake-up, but this is is the biggest example of cutting your nose off to spite your face in recent years. Hands might have a grasp of the financials, but he's displayed a shocking inability to understand and value creativity (in terms of both staff and artists).

We're not expecting him to indulge all the artists by buying them gold helicopters that run on cocaine; but, based on the evidence so far, he's little more than music's Bernard Matthews, treating artists and their work as mechanically-reclaimed meat that can be pumped out in bland parcels that satiate no one and probably slowly poison you. He's conducting 'A&R by spreadsheet' and that way lies ruin. He's talked repeatedly about "turning around this great British institution". In reality he's skinning a cat and making it wear dungarees made of vinegar.

4th Feb: DECENT OR INDECENT EXPOSURE?  MUSIC MARKETING & PROMOTION IN THE 21st CENTURY

When & Where: Mon 4th Feb. 4-9pm | Registration: 3.30pm | Networking: 6.45pm | BAFTA, 195 Piccadilly, London W1J 9LN
Price: **FREE** - booking essential, see below.

Run in association with Business Link London, this event is open to all London-based businesses and artists.  Strictly one place per company/organisation.

Creating music is one thing but reaching your target audience is another.  This seminar will offer practical advice on how to go about marketing and promoting your music in both the print and broadcast environment and in the digital domain.  There will be two sessions looking at how to approach the digital market along with securing reviews and airplay using the traditional avenues of print media and terrestrial broadcast.  The experienced panels will explain how they work, what they are looking for and how best to present yourself. 

Speakers will include:
Ric Blaxill, Scott Cohen (The Orchard), Mark Ellen (Word), Chris Green (BACS), Rhodri Marsden (Journalist), Martin Nelson (plugger), Daniel Pemberton (composer) and Feargal Sharkey (BMR).

More...

Event Hotline - 0845 6000 787

http://www.businesslink.gov.uk/bdotg/action/eventDescription?type=EVENTS&site=181&itemId=5000940942

5 & 6th Feb: MPA INDUCTION COURSE

When & Where: Tues 5 Feb. 9.30am – 4.30pm | Wed 6 Feb. 9.30am – 1.30pm.
Price: £130+VAT MPA members / £210+VAT non-members.

The MPA Induction Course is an essential overview of the music publishing industry, its organisations and their roles.

If you would like to book a place on the course, please fill in and return a registration form (found at the link below) and payment to Richy K. Chandler at the MPA:  6th Floor, 26 Berners Street, London W1T 3LR.

More...

http://tinyurl.com/2e55ct

mailto:rchandler@mpaonline.org.uk

19th Feb: NORTHERN EDGE MUSIC BUSINESS MASTER CLASS

When & Where: 9am-6.30pm | Futureworks, Manchester
Price: **FREE** - via application & subject to admission criteria

Delivered by the Association of Independent Music (AIM), the Northern Edge Music Business Master Class offers 15 managers of music businesses based in the Northern Way city regions, the opportunity to take part in a day of advanced music business training. 

Covering the core business areas of music marketing, digital music and new business models, this one-day event will give attendees the chance to watch presentations from seasoned industry professionals, network with industry figures and other music business managers and participate in practical exercises to develop their business skills.

The Music Business Master Class is a free event from Northern Edge, the consortium of 15 northern universities that works closely with the creative and cultural industries to harness expertise in teaching, learning and research in areas such as journalism, visual arts and music.

Eligibility criteria applies.  Individuals must be from companies based in the Northern Way city regions and companies must have been trading for a minimum of two years.

Deadline for applications is Friday 1st February 2008.

More...

Tel - 020 8994 5599

mailto:lara@musicindie.com

17th, 18th, 19th March '08: CREATIVE BUSINESS IN THE DIGITAL ERA

Day Course: 17 Mar '08, 9.00am to 5.30pm | Evening Course: 18 & 19 Mar '08, 6.00pm to 9.00pm
Where: 01zero-one: Westminster Kingsway College, Soho Centre, Peter Street, London W1F 0HS
Cost: **FREE** and even includes lunch and refreshments!  Application required - see below.

Free culture - giving versions of creative works away, and even allowing others to copy, distribute, sample or create derivative works from them - is at the heart of the digital revolution. This approach seems alien to many in the creative world who assume free culture cannot generate income, but it can help you connect with a new audience, to develop a more engaged audience and even to make new business connections.

The Creative Business in the Digital Era seminar, presented by Suw Charman, will help you understand the opportunities presented by open IP (intellectual property) and how being open should be a central part of your creative business model.

How do you apply? Visit:

http://www.openrightsgroup.org/creativebusiness/blog/cbde-application-pack/

...and download an Application Pack. The closing date is 15th February 2008, and all applicants will receive a response by 29 February 2008.

Any questions? Contact Suw Charman or Michael Holloway at:

mailto:creativebusiness@openrightsgroup.org

E-GUIDE TO SYNCHRONISATION LICENSING

AIM has launched the first in a series of E-Guides focusing on key areas of record label business: The AIM E-Guide to Synchronisation Licensing.  Providing music companies with essential information on the synchronisation licensing business and a directory of over 100 key contacts, the E-Guide is an invaluable source for anyone looking to maximise this aspect of their music business.

The AIM E-Guide offers all the information and contacts needed to establish a successful synchronisation licensing arm of your business and develop a valuable new income stream for your company.  The E-Guide was compiled on behalf of AIM by market research specialist Marie Henley of marketing and research organisation GIO, in consultation with more than 20 synch industry professionals.

Cost: Free to AIM members | £40+VAT for non-members.

http://www.musicindie.com/306.asp?sub=General%20Resources

EMI Vision - Guy Hands's powerpoint presentation to EMI, January 2008.

"The reshaping of the company will focus our business activity into three key, and clearly defined streams.

   1. Labels/A&R to be focused on putting the artist first;

   2. Music Services will deliver music products and services for today’s consumer;

   3. Support Services will have the role of achieving the operational excellence necessary to help the other two streams achieve their business objectives.

Radical change of the kind – and especially the elimination of duplication – means a substantial reduction in jobs across the Company.

Together – this group of people will create a lean, lively and stimulating organisation, with a strong creative and innovation culture."

More...

http://www.musictank.co.uk/reports/guy-hands-powerpoint-presentation-to-emi-staff

Making Music With Mobile

This Whitepaper cites the hurdles, drivers and market potential for mobile music and is an extract from Jupiter Research's fourth edition of its mobile music report,  "Mobile Music Ringtones, Ringbacks, Full Tracks & Payment Models, 2007-2012."

More...

http://www.musictank.co.uk/reports/making-music-with-mobile-whitepaper

If you have any queries regarding any of our events or activities, please call Jonathan on 020 7915 5412, or e-mail: info@musictank.co.uk

The views and opinions expressed are those of the author and are not necessarily condoned or shared by MusicTank. MusicTank is a non-profit organisation owned and operated by University of Westminster. University of Westminster is a charity and a company limited by guarantee. Reg Number: 977818, England. Registered Office: 309 Regent Street, London, W1. MusicTank is based at University of Westminster, Fifth Floor, Copland Building, 115 New Cavendish Street, London, W1W 6UW.