A little over a year ago EMI was acquired by private capital. A report written up by the current owners details the failures of the company and a strategy going forward. The value they see in EMI is the publishing arm and EMI back catalogue, and they’re pushing for a gutting of the EMI new music division. The division that actually works to sign, record, and release/market new artists. This is sad because it is the one division working to create new value for the company and new music for the world. It is the one division really supporting new acts. What they advocate is making EMI be on par with a sleazy patent holding company. licensing out its music at a set rate. While this might make business sense it is clear that the old record business model is finished in the eyes of private equity.

A few select tidbits: Revenue from march 07-08 year was down 23%, with physical sales of CDs falling 28%. In the report it detailed EMI as having two great assets: EMI Music Publishing, and EMI Music’s catalogue, sadly it did not list the A&R, or New Music division of EMI Music tasked with working to develop and sign new talent.

Here’s the link to the full article for business or music nerds (WARNING: it’s 101 pages):