EMI Wants to Reduce its Member Dues; Warner Music Group Sees Significant Decline in Sales
EMI to RIAA & IFPI - "What Am I Paying You For Again?"
I read this news item from Digital Media Wire regarding EMI's decision to possibly reduce paying its member dues to the RIAA (Recording Industry Association of America) and IFPI (International Federation of the Phonographic Industry). Both are lobby groups that urge lawmakers in their respective countries to establish anti-piracy regulations. Apparently, EMI's reason to reduce paying its dues is to cut their cost. But I think there's another reason. I think Terra Firma, the private equity firm that acquired EMI this past year, is looking to see significant ROI (Return on Investment) in this stake. I think there are two factors at play, 1) Continue making EMI's catalog and future releases DRM-free; 2) The Olivennes Report. EMI has openly backed the radical French anti-piracy report authored by Denis Olivennes - aka the "Olivennes Report". Basically, it institutes the "three strikes and you're out" policy. It seems that EMI is banking on this report to be unanimously embraced by the international body of movie/TV, anime, music distributors/producers/creators, etc. France's legislation won't pass this until Q1 of 2008; which means it may take effect as early as summer 2008.
Warner Music Group - Physical Retail Heading Further Down But Digital Sales Doing Better
I'm not going to waste my typing skills on this one, so I'll just have you click here to read the report.
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