DMW: Digital Music W...

Change scares people. The word is used a lot these days - (US politics especially). But in this arena where the music industry must survive under the daunting weight of technology, change is necessary and good.

Guy Hands, EMI's chairman (see picture below) unveiled his restructuring program to the public Tuesday where the focus is more on acquiring and retention of bankable artists and centralising the marketing and sales units from all the labels that reside under the EMI label. This could mean labels like Mute, Astralwerks and other EMI associated labels will be forced to merge and slough away their redundant departments.

REUTERS/Kieran Doherty
Doesn't Guy Hands look like a fat Jerry Springer?

The task of actually re-building the record label is tough but doable. Its the task of actually re-teaching the music industry how to make money without compromising artist integrity or their welfare that's tricky. The reason most bands and musicians are voicing concern about the plan is because Guy's plan basically eradicates the decades-old system of granting advances to musicians prior to touring or making a profit on album sales or royalties (if they get any, that is). Instead, Guy's plan is more of a rev-share approach and bringing in more corporate sponsors to defray rising tour costs. Its not certain if this plan also affects lables like Parlophone, Blue Note, Mute and Astralwerks among so many others (Capitol & Virgin in USA merged last year but still retain autonomy from each other). I assume it does.

Time will tell if musicians will buy into Guy's plan. Those musicians who are balking at the re-structuring plan now will most likely eat their own words a year from now if this plan does in fact succeed. Personally, I think what Guy is doing what is necessary for an industry in need of rehabilitation. Major label artists have been sucking on the teet of their record labels for far too long (yes, Robbie Williams - that means you. Popular in the UK, not in the US). They really have to shut up and think of surviving in the business because at the end of the day, that is what making music for the masses is - a business. Musicians who are savvy and have some sort of inkling on how to be creative - financially and musically - they are the ones who will benefit from this plan.

Here's an excerpt from the plan:

In a series of presentations to staff, artists and managers, Guy Hands, EMI Group’s chairman, is unveiling a fundamental reshaping of the business to reflect the rapidly-changing nature of the music industry. The changes include:

The changes, which will be implemented over the next six months, will enable the group to invest more in its A&R operations both to identify and sign promising new artists and to maximise the potential of its existing roster.

Click on the following for details on the EMI re-structure.

EMI press release