Who Is EMI Group PLC?

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For the exclusive use of C. Portillo Cardenas, 2015

Rev. Feb. 13, 2009


In this Internet age, the consumer is using music content more than ever before— whether that’s playlisting, podcasting, personalizing, sharing, downloading or just simply enjoying it. The digital revolution has caused a complete change to the culture, operations, and attitude of music companies everywhere. It hasn’t been easy, and we must certainly continue to fight piracy in all its forms. But there can be no doubt that with even greater commitment to innovation and a true focus on the consumer, digital distribution is becoming the best thing that ever happened to the music business and the music fan.
—Eric Nicoli, CEO, EMI Group1
In early
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Recorded music and music publishing were the two main revenue drivers for the music industry. EMI divided its organization into two corresponding divisions. EMI Music, the recorded-music side, sought out artists it believed would be long-term commercial recording successes. Each EMI record label marketed its artist’s recordings to the public and sold the releases through a variety of retail outlets. EMI’s extensive music catalog consisted of more than
3 million songs. Recorded-music division sales came from both new and old recordings with existing catalog albums constituting 30% to 35% of the division’s unit sales. Exhibit 3 contains a list of EMI’s most successful recording artists in FY2007.
EMI Music Publishing focused not on recordings but on the songs themselves. Generally, there were three categories of publishing-rights ownership in the music industry: the lyric’s author, the music’s composer, and the publisher who acquired the right to exploit the song. These publishing-rights owners were entitled to royalties whenever and however their music was used.
Music publishers categorized their revenue streams as mechanical royalties (sales of recorded

In the United Kingdom, companies typically declared dividends twice a year, first with the
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