If it’s broken, you’d better fix it – EMI

Today’s FT carried an interview with Guy Hands of Terra Firma on the subject of EMI.

Amongst several stats trotted out, one section stood out for me:

Mr Hands also hinted at a clear-out of EMI Music’s roster of 14,000 artists, saying just 200 of them made most of its revenues.

About 85 per cent of artists lose money for their labels, he said, and EMI spends £70m a year subsidising the 15 per cent who never produce an album. The group has exceeded marketing budgets by about £60m a year, he added, and wastes £25m a year scrapping unsold CDs.

Leaving aside artist productivity and profitability, most businesses try to convert their “waste” into some scrap value, be it returned newsprint or whatever. That they have to destroy CDs is bizarre – why not get someone to come and take them away for instance.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: