EMI
From Wikipedia, the free encyclopedia
| EMI Group PLC | |
 |
|
| Type | Public (LSE: EMI) |
|---|---|
| Founded | 1931 |
| Headquarters | London, England |
| Key people | Eric Nicoli, Chairman Alain Levy, CEO of EMI Music Martin Stewart, CFO |
| Industry | Music |
| Revenue | £2.07 billion (2006) |
| Net income | £724.6 million (2006) |
| Employees | 6,300 |
| Website | EMI Group website |
The EMI Group (LSE: EMI) is a British music company comprising of the major record company EMI Music which operates several labels, based in Brook Green in London, England, and EMI Music Publishing, based on Charing Cross Road, London. EMI Music is one of the Big Four record companies, making it among the largest in the world.
Contents |
[edit] History
The Electric and Musical Industries Ltd formed in March 1931 from a merger of the UK Columbia Graphophone Company and the Gramophone Company. From its beginning, the company was involved in both the manufacture of recording and playback equipment and the provision of music to play on its machines.
[edit] Manufacturing
The company's gramophone manufacturing led to forty years of success with larger-scale electronics. During and after the World War II, the EMI Laboratories in Hayes, Hillingdon developed radar equipment and guided missiles. The company later became involved in broadcasting equipment, notably providing the first television transmitter to the BBC. In 1958 the EMIDEC 1100, Britain's first transistorized computer was developed at Hayes under the leadership of Godfrey Hounsfield. In the early 1970s, the EMI scientist developed the first CAT scanner, a device which revolutionized medical imaging. Hounsfield later won the Nobel Prize for his accomplishment. After brief but brilliant success in the imaging field, EMI's manufacturing activities declined and disappeared.
[edit] Music
Early in its life, the company established subsidiary operations in a number of other countries in the British Commonwealth, including India, Australia and New Zealand. EMI's Australian and New Zealand subsidiaries dominated the popular music industry in those countries from the 1920s until the 1960s, when other locally-owned labels (such as Festival Records) began to challenge EMI's market near monopoly in those regions.
In 1931, the year the company was formed, it opened the legendary recording studios at Abbey Road, London. During the 1930s and 1940s, its roster of artists included Arturo Toscanini, Sir Edward Elgar, and Otto Klemperer, among many others. During this time EMI appointed its first A&R managers. These included George Martin, who later brought The Beatles into the EMI fold.
In 1957, to replace the loss of its long-established licensing arrangements with RCA Victor and Columbia Records (Columbia USA cut its ties with EMI in 1951), EMI entered the American market by acquiring 96% of the stock of Capitol Records.
Its classical artists were largely limited to the prestigious British orchestras, such as the Philharmonia Orchestra. During the LP era very few U.S. orchestras had EMI as their principal recording company; an exception was the Pittsburgh Symphony, particularly during the years of William Steinberg's leadership, also Carmen Dragon who conducted the Hollywood Bowl Symphony Orchestra.
Under the management of Sir Joseph Lockwood, during the late 1950s, 1960s and early 1970s the company enjoyed huge success in the popular music field. The groups and solo artists signed to EMI and its subsidiary labels -- including Parlophone, HMV and Columbia Graphophone and Capitol Records -- made EMI the best-known and most successful recording company in the world at that time, with a roster that included scores of major pop acts of the period including The Beatles, The Beach Boys, The Hollies, Cilla Black and Pink Floyd.
By 1967 EMI converted HMV to an exclusive classical music label, shifting HMV's pop music roster to Columbia. In 1969, EMI established a new subsidiary label, Harvest Records, which signed groups in the emerging progressive rock genre, including Pink Floyd.
Electric & Musical Industries changed its name to EMI Ltd in 1971 and the subsidiary Gramophone Company became EMI Records Ltd in 1973. In 1972, EMI replaced the Columbia label with EMI Records. In February 1979, EMI Ltd. acquired United Artists Records.
In October 1979 THORN Electrical Industries merged with EMI Ltd. to form Thorn EMI.
In 1989 Thorn EMI bought a 50% interest in Chrysalis Records, buying the outstanding 50% in 1991. In one of its highest-profile and most expensive acquisitions, Thorn EMI took over Richard Branson's Virgin Records in 1992.
On August 16, 1996, Thorn EMI shareholders voted in favour of demerger proposals. The resulting media company has since been known by the name EMI Group PLC.
During 2004-2006, EMI quit the Chinese-pop market in Hong Kong.All pop-music singers in EMI are presented by Gold Label in Hong Kong.
On 2nd April 2007, EMI announced it would begin releasing its music as superior-quality DRM-free tracks available exclusively on the iTunes Store [1]. The tracks will cost $1.29/€1.29/£0.99, and the same tracks will still be able for the standard $0.99/€0.99/£0.79 at lower quality and with DRM restrictions still in place. Users will be able to ‘upgrade’ EMI tracks that they have already bought for $0.30/€0.30/£0.20. Albums are available at the same price as their lower quality, DRM counterparts. Music videos from EMI will also be DRM-free. The higher-quality, DRM-free songs will be available worldwide in May.
[edit] Legal issues
On December 15, 2005, Apple Records, the record label representing The Beatles, launched a suit against EMI for non-payment of royalties. The suit alleges that EMI have withheld $50 million from the record label. An EMI spokesman noted that audits of record label accounts are not unusual, confirming at least two hundred such audits have been performed, but that they rarely result in legal action[2].
[edit] EMI and Warner Music Group
On May 5, 2006, EMI entered preliminary talks to buy Warner Music Group, (NYSE : WMG), [3] which would reduce the world's four largest record companies (Big Four) to three; however, according to Warner's site, its board has rejected the proposal. [4].
Warner Music Group launched a Pac-Man defense, offering to buy EMI. EMI rejected the offer. Representatives from both sides are thought to be still having meetings and deciding if one company will buy the other, however the European Commission's decision to overturn a previous decision allowing a similar merger between Sony and BMG is likely to have raised issues as to the wisdom of pursuing such a move at this time.
By most measures, a merged company of EMI and WMG would be even bigger than Sony BMG. Concerns regarding the creation of a monopoly may mean WMG will not receive approval from the European Commission. However Impala, a large independent, non-profit trade association of indie music labels, has given the Warner Music its blessings to acquire EMI, the third-largest music group. In return, it is suggested[5] that the newly merged company will take responsibility for:
- providing specified funding for (but taking no equity participation in) the recently announced Merlin initiative, the new global digital rights licensing platform established by the independent music labels to represent the world’s independent music sector;
- ensuring the divestiture of certain recorded music assets to reinforce the market power of the independent sector; and
- pursuing various other behavioral commitments which have the aim of benefiting the recorded music market as a whole and, in particular, the independent music sector.
[edit] Labels under the EMI banner
See List of EMI labels.
[edit] Musicians signed, or previously signed, to EMI
EMI has signed many popular artists from multiple genres, including The Beatles, Frank Sinatra, Radiohead, Selena and Garth Brooks.
[edit] Trivia
- The Sex Pistols were briefly signed to the label from October 8, 1976 to January 27, 1977 in a relationship that was fraught with controversy, and that had lasting repercussions for the history of the music industry. In a gesture of retaliation, the Sex Pistols added to their first album (released on Virgin Records), Never Mind the Bollocks, a song entitled "E.M.I.", insulting the company. Virgin was acquired by EMI in 1992, so ironically the company now profits from sales of that song.
- In 2001, pop diva Mariah Carey was signed to Virgin in a much hyped, multi-album deal reportedly worth a record-breaking $80-$100 million. After her first album in the deal, Glitter, performed poorly, she was reportedly paid $28 million to leave the label. Along with the estimated $20 million advance she received, this is the highest amount a record label has ever paid an artist for a single album.
- Pop star Robbie Williams signed a 6 album deal paying him over £80 million ($157 million), which was not only the biggest recording contract in British music history, but the second biggest in music history.[1]
- The Red Hot Chili Peppers were signed to the label after only 6 months of being a band.
- One of the Dance Dance Revolution female characters and dancers, Emi, is named after the record label company as well.
[edit] EMI Music Publishing
As well as the well-known record label the group also holds EMI Music Publishing, which is the largest music publisher in the world. As is often the case in the music industry, the publishing arm and record label are very separate businesses.
[edit] References
- International Directory of Company Histories, St. James Press.
[edit] See also
- EMI Films
- EMI Songbook Series
- List of EMI labels
- List of musicians signed to EMI
- List of record labels
- The HMV Group
[edit] External links
Categories: Companies listed on the London Stock Exchange | Articles with large trivia sections | British record labels | Media companies of the United Kingdom | Companies based in London | Companies established in 1931 | Record label distributors | EMI | Television technology | History of television | Companies without an unabbreviated name
