EMI up a small business or launch

EMI Records essay.

We know from smart people thoughts that if you
want to set up a small business or launch a label, first thing you have to
do is to be in this business, every business person have their own personal
issues and most importantly in this business is to have an partner a second
hand I would say, who will help whatever you want have help, have strong person
behind you, is the key to the problem solving. Finance is always was and will
be the main issue in the business, but minority of people can set up the
business without  spending or not having
at all in a pocket money, and much much experienced than new non-experienced
investor might have that luxury, my journey will start here when I will be
talking about specific things that might interest people. I will start with
Record Label called Major EMI record company, its a bit risky to choose a major,
it’s a lot to write about, but it should be okay. Right? I will present an
introduction to the EMI record label and of course financial side of this
business. I will show a little bit of dark side of business.

EMI- One of the biggest four major record
company (now big three) London, UK. EMI got its first step in 1931 as a small
manufacturer of gramophone in the record players under the household name The
UK Gramophone Company. While EMI had  a huge
success in the sales market in the early 90’s  it is actually a record label that went
worldwide very quickly. Also in 1931 the same date where the EMI was  so young not well known yet, they opened the
Abbey Road Music Studio in London. Abbey Road of course has a massive
significance to the music industry, thanks to the legendary bands  Brits band called The Beatles, the artists
who would later put EMI into the massive explosion of success and became
powerful record company around the globe The studio nowadays remains a musician
dream. EMI had early license arrangements with RCA Records and Columbia Records.

In the early 1950’s
EMI had severed ties with these companies

Till 1957’s , EMI was
basically an European label. In the decade ago, the label owns rights to
another bigger  US label called Capitol Records.
The relationship with Capitols Records went well, this was the beginning of the
major record label path, few year ago the label went to an international
success ,(again thanks to legendary Brits, we all know The Beatles that bring for
EMI a success that they waited for so long.

During the The Beatles
time, when the band was the emperor of centre attention of fans, EMI launched another
few record companies:



Columbia Records

Enter The Beatles :

EMI and A&R person
George Martin brought to the label a small band called The Beatles ( it is
interesting fact that one label do not want to sign them, and rejected by the
three EMI A&R executive that time, before coming a cross Martin).

rest as they say is rock n roll history. And thanks to the Martin The Beatles became
most best selling band in the history of Rock n Roll and music. By association,
EMI and their Capitol label imprint in America became one of the most powerful
label in the globe.

The Beatles launched their own Apple label, EMI was behind them, they acted as
distributor and retained ownership of The Beatles catalogue.

very important EMI artists :

King Cole


Rolling Stones


Beach Boys





Shop Boys

White Stripes






Hot Chilli Peppers

















was the home to the many established artists like The Beatles, Pink Floyd and
The rolling stones.

also license and distribute albums from very significant and reputable independent
record companies like Mute Records and Astralwerks.

Records (The Beatles) :

December 2005 (The Beatles launched Apple Records label) was found the file
that against the big EMI (claimed that EMI owed Apple millions unpaid royalties).
After two years of legal disagreement, an argument was happened between two
labels in April 2007. The exact terms of the agreement wasn’t made for the
public eye.

Three??? :

2006, last sister of big four major record label Warners Music launched a takeover
bid for EMI, which Warner Music would been created the world’s a huge record
label. Looks like the EMI reject of Warners bid.

and Citi Bank :

EMI label was unable to pay artist a royalties, money even renting place, they
had last hope that could help them to break trough the depts. This is bad period
for EMI label. When its appeared that the struggle label won’t  meet the criteria a $155 million loan payments.
After 11th hour the label actually get the money from bank, they
make payment and label bought itself a new lease on life at least till March
2011, when the next payment will be due.

EMI Act (Sex Pistols Slagging) :

Sex Pistols were signed to EMI, the deal was short and lasted from October 1976
to January 1977. EMI was supposed to release the debut of Sex Pistols Album,
but they had a bit of misunderstanding with a band and the label, and EMI
dropped The sex Pistols from their label. In striking back, The Sex Pistols
seethed against the name in the tune of E.M.I. in their single  Never Mind the Bollocks collection, which was released
in a Virgin Records. That collection went ahead to wind up plainly a major record
producer for Virgin, and in fact a great collection, period. Last giggle for
The Sex Pistols? Nope – EMI bought Virgin, and now EMI gathers the checks for
Sex Pistol deals and money.

side of EMI :

apparently the most biggest corporate name in British music history and went
massively worldwide, the EMI felt under pressure I would say the control of its
two biggest competitive major record companies, both worth deal was £2.5bn bid
– in a finale four-year time the label had a massive collide for their business
with one of the financial companies called Guy Hands also they got rejected by
bands The Rolling Stones.


Music, the world’s greatest recorded music organization, triumphed in a close out
for EMI’s recorded music business, with a £1.2bn offer for the mark behind
Coldplay, Tinie Tempah, or more all, the Beatles. Its offer was about £250m
more than match Warner Music.



was the initial segment of a two-organize separation of EMI, with the music
distributing division, the home of the Motown inventory, heading off to a
consortium drove by Sony – the world’s second-biggest music gathering. Sony
achieved assention on a basic level to purchase the division for £1.3bn, seeing
off an offer from BMG Rights Management, a joint wander by Germany’s
Bertelsmann and the private value bunch KKR.


was put on the square by US bank Citigroup, which seized control of the
organization in February after it turned out to be evident that its proprietor,
Guy Hands’ organization Terra Firma, couldn’t battle with the £3.4bn obligation
gone up against when he purchased the business in 2007.


twofold deal implies that Citi will recover about £2.5bn of its unique advance.
The bank likewise scooped a little finished £200m in charges from the first
credits to Terra Firma, implying that its general misfortune on those advances
is somewhat less than £700m. Bank insiders portrayed that as “a great
outcome” given that EMI was purchased at the tallness of the credit blast
and is being sold in a downturn.


to the Media Briefing: news for the news-creators



turn for EMI implies that the two organizations will represent 38% of all
recorded music deals around the world. In a few nations, for example, France,
that figure will be more than half. Vivendi, Universal’s proprietor, vowed to
go out on a limb in the arrangement. CEO Jean-Bernard Lévy said it would pay
£1.1bn in 10 months and a further £100m on fruition.


Dyson, proofreader of industry bulletin Music and Copyright, said that he would
“be exceptionally amazed” if controllers cleared the arrangement
“without a considerable measure of offer offs” – and said that the
general piece of the overall industry level was dangerously near “the
enchantment number for an inside and out no” for the Universal-EMI blend.
Sony’s arrangement for EMI’s music distributing inventory conveys far less
administrative dangers on the grounds that Sony is a moderately little player.


inclusive rushed to underscore its responsibility regarding EMI’s melodic
legacy, with Lucian Grainge, the British CEO of Universal Music, promising to
keep the notable Abbey Road studios where the Beatles and numerous different
popular specialists have recorded. “Nunnery Road Studios are an image of
EMI, an image of British culture, an image for the imaginative group of
precisely what the organization is and we are now part of,” he said.


All  investors who wanted to bought the EMI said
that it is  anticipated that would had a  spare £100m a year in costs by consolidating
operations with EMI. The organization included that it was “exceptionally
sure” that it is ready to get the arrangement through an administrative
examination, which could take up to a year, saying that it expected
“profound and productive exchange”.


accentuate the point, Universal wheeled out Mick Jagger, who moved the Rolling Stones
inventory from EMI to Universal after a dropping out with Hands. The vocalist
said Universal’s turn was “an extremely constructive improvement and I
especially welcome the way that EMI will by and by be possessed by individuals
who truly do have music in their blood”.

inquiry. Also, one which gets especially interesting when you
consider what occurred in 2012 and 2013.


short brief lessons: In September 2012, Universal effectively finished the
ingestion of the greater part of EMI Music, including The Beatles list. The
sticker price was £1.2bn ($1.9bn).


a lump of EMI’s copyrights (counting David Bowie, Blur, Coldplay and others)
stayed with Parlophone Label Group, which was subsequently sold to Warner
for £487m in July, 2013.


intrigues didn’t stop there:  in concurrence with the EC and
Merlin/IMPALA, Warner consented to strip $200m+ in resources for the autonomous
part, a procedure which is presently – three years on – at long last in


is all imperative foundation data when you assimilate the underneath: a
convenient at-a-glace manual for where worldwide chronicles piece of the pie
(by income) has gone in the course of recent years.


have done this for the UK showcase some time recently, yet never around the


see the astounding moving graphs beneath in a greater window, simply tap on


details originate from the venerable Music and Copyright’s yearly
worldwide reports, which are broadly held as the business standard with regards
to this stuff.


information is excluded, clearly – M&C is required to uncover those numbers
in spring one year from now.)

In Conclusion :

And the End I would like
to say that, not every business is successful, we saw in the past decades how
EMI was interacting with other artists and labels, before was a powerful label
in the globe and went quickly worldwide thanks to The Beatles, on the other
side of business the label had already $ 4 billion depth, even the loan doesn’t
help the cover all depth they had, borrowed money from the Citi Bank does help cover
a small amount of accommodation that EMI renting, and finally they went
bankrupt and EMI in 2007 was sold to UMG, all EMI assets was sold to Warner
Music. Taking a risk is a challenge or I would say a lesson for the new
business people. In my point view every business, or idea even finance side
should be well organised and prepared, as I mention early on every business
should have at least one stakeholder (director) and one who is responsible for
the whole beauty process of what’s going on the other business side.






What’s happened to global market share since Universal bought EMI?




Sisario, Ben (8 February 2013). “Warner
Music Group Buys EMI Assets for $765 Million”. The New York Times. Retrieved 11 April 2013.

reports”. EMI Music. 31 March 2009. Archived from the original on 29 April 2010. Retrieved 13
August 2010.

ditching EMI for Universal”. BBC News. 25 July 2008. Retrieved 1

Sells EMI in Parts for $4.1 Billion to Vivendi, Sony”. Bloomberg BusinessWeek. 8 December 2009. Retrieved 16 November 2011.

Records launches royalties lawsuit against EMI…again”. CBC
News. 16 December 2005. Archived from the original on 20 May 2007. Retrieved 17


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