EMI
Sony/ATV Music Publishing comprising
| |
Successor | |
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Headquarters | Westminster, London , England, United Kingdom |
Area served | Worldwide |
Key people | Founding CEO Lenard John Brown Roger Faxon (Former CEO) Ruth Prior (Former CFO) |
Revenue | £1.072 billion (2009) $1.65 billion (2009) |
£163 million (2009) (EMI Music)[5] £135 million (2009) (EMI Music Publishing)[6] | |
Owner |
|
Number of employees | 5,500 (2008) |
Subsidiaries | |
Website |
EMI (originally an initialism for Electric and Musical Industries, also referred to as EMI Records Ltd.) was a British transnational conglomerate founded in March 1931 in London. At the time of its acquisition by Universal Music in 2012, it was the fourth largest business group and record label conglomerate in the music industry, and was one of the "Big Five" record companies (now the "Big Three"). Its labels included EMI Records, Parlophone, Virgin Records, and Capitol Records, which are now referenced under Universal Music due to their acquisition with the exception of Parlophone, as it is now owned by Warner Music.
EMI was listed on the
EMI Music Publishing is now owned by
History
Electric and Musical Industries Ltd was formed in March 1931 by the merger of the Columbia Graphophone Company and the Gramophone Company, with its "His Master's Voice" record label, firms that have a history extending back to the origins of recorded sound. The new vertically integrated company produced sound recordings as well as recording and playback equipment.
The company's gramophone manufacturing led to 40 years of success with larger-scale electronics and electrical engineering.
In October 1979, EMI merged with Thorn Electrical Industries to create Thorn EMI.[12]
On 16 August 1996, Thorn EMI shareholders voted in favour of demerging Thorn from EMI again: the Company became EMI Group plc, and the electronics and rentals divisions were divested as
The company broke up in 2012.
Electronics research and development
Television
In 1934, an EMI research team led by Sir
colour television camera, which became the mainstay of much of the British television industry from the end of the 1960s until the early 1990s. Exports of this piece of equipment were low, however, and EMI left this area of product manufacture.Blumlein and radar
EMI engineer
During and after
Photomultipliers
The company was also for many years an internationally respected manufacturer of photomultipliers. This part of the business was transferred to Thorn as part of Thorn-EMI, then later became the independent concern Electron Tubes Ltd.
Computers and CT scanner
The EMI Electronic Business Machine, a valve and magnetic drum memory computer, was built in the 1950s to process the British Motor Corporation payroll.[16][17]
In 1958 the EMIDEC 1100, the UK's first commercially available all-transistor computer, was developed at Hayes under the leadership of Godfrey Hounsfield, an electrical engineer at EMI.[17]
In the early 1970s, with financial support by the UK
After brief, but brilliant, success in the medical imaging field, EMI's manufacturing activities were sold off to other companies, notably Thorn (see Thorn EMI). Subsequently, development and manufacturing activities were sold off to other companies and work moved to other towns such as Crawley and Wells.
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Emitron television camera
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H2S radar display set
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First commercially available CT scanner made by EMI
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EMI photomultiplier tubes
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EMI tape recorder
Emihus
Emihus Electronics, based in
Music
Early in its life, the Gramophone Company established its subsidiary operations and branch offices in a number of many other countries inside and outside of the
In 1931, the year the company was formed, it opened the legendary recording studios at
When the Gramophone Company merged with the
However, EMI was subsequently forced to sell Columbia USA due to anti-trust action taken by its American competitors. By this time the record industry had been hit hard by the Depression and in 1934 a much-diminished Columbia USA was purchased for just US$70,500 by ARC-BRC (
RCA sold its stake in EMI in 1935, but due to its 1929 takeover of Victor, RCA retained the North and South American rights to the "His Master's Voice" trademark. In other countries, the Nipper logo was used by the EMI subsidiary label HMV, even though the "His Master's Voice" slogan itself would be retained by RCA along with the logo.
In 1938 ARC-Brunswick was taken over by CBS, which then sold the American Brunswick label to American Decca Records, which along with its other properties, Vocalion Records and Aeolian Vocalion Records, used it as a subsidiary budget label afterward. CBS then operated Columbia as its flagship label in both the United States and Canada.
EMI retained the rights to the Columbia name in most other territories including the UK, Australia and New Zealand. It continued to operate the label with moderate success until 1973, when it was retired and replaced by the EMI Records imprint, making records with the Columbia Records label manufactured outside North America between 1972 and 1992 rare.
In 1990, following a series of major takeovers that saw CBS Records acquired by the
EMI released its first
From 1960 to 1995 their "EMI House" corporate headquarters was located at 20
EMI's classical artists of the period were largely limited to the prestigious British and European orchestras, such as the Philharmonia Orchestra and London Symphony Orchestra as well as the Choir of King's College, Cambridge. During the era of the long-playing record (LP), very few American and Canadian orchestras had their principal recording contracts with EMI, one notable exception being that of the Pittsburgh Symphony Orchestra, especially during the tenure of William Steinberg.
From the late 1950s to the early 1970s, the company enjoyed huge success in the
In 1967, while shifting their focus on pop and rock music roster to Columbia and Parlophone, EMI converted HMV solely to a
In 1971, Electric & Musical Industries changed its name to EMI Ltd. and on 1 January 1973 EMI phased out most of its heritage labels and replacing them with the EMI imprint. On 1 July 1973 the Gramophone Company subsidiary (The Gramophone Co. Ltd.) was renamed EMI Records Ltd as well, and in 1978, EMI launched EMI America Records as its second label in the United States after Capitol. EMI Music Worldwide was also formed in 1978 with Bhaskar Menon as chairman and CEO. In February 1979, EMI Ltd acquired United Artists Records and with it their subsidiary labels Liberty Records and Imperial Records. Eight months later, Thorn Electrical Industries merged with EMI Ltd. to form Thorn EMI.[25]
Sometime in the late 1980s, EMI America merged with sister label Manhattan Records, founded in 1984,[26] becoming EMI Manhattan and eventually EMI USA when Capitol absorbed it in 1989.
Also in 1989, Thorn EMI bought a 50% interest in Chrysalis Records, completing the buyout two years later. Six months after completing the buyout of Chrysalis, Thorn EMI bought Virgin Records from Richard Branson in one of its highest-profile and most expensive acquisitions in record music history. In 1992, Thorn EMI entered the Christian music market by acquiring Sparrow Records.[27]
Aftermath of demerger from Thorn
Due to the increasing divergence of business models, Thorn EMI shareholders voted in favour of demerger proposals on 16 August 1996. The resulting media company was now known as EMI Group PLC.[28] In 1997, EMI Records USA was folded into both Virgin and Capitol.[29]
Since the 1930s, the
On 21 November 2000, Streamwaves and EMI signed a deal licensing EMI's catalogue in a digital format for their online streaming music service. This was the first time EMI had licensed any of its catalogue to a streaming music website.[31]
Pop star Robbie Williams signed a six-album deal in 2002 paying him over £80 million ($157 million), which was not only the biggest recording contract in British music history at the time, but also the second biggest in music history[32] behind that of Michael Jackson.
Apple Records, the record label representing The Beatles, launched a suit against EMI for non-payment of royalties on 15 December 2005. The suit alleged that EMI had withheld $50 million from the record label; however, an EMI spokesman noted that audits of record label accounts are not that unusual, confirming at least two hundred such audits performed on the label, but that these audits rarely result in legal action.[33] A legal settlement was announced on 12 April 2007 and terms were undisclosed.[34]
On 2 April 2007, EMI announced it would be releasing its music in DRM-free formats. These were to be issued in AAC format, which gave higher quality for the same bitrate compared with the ubiquitous MP3 format. The music would be distributed via Apple's iTunes Store (under the iTunes Plus category).[35]
Tracks were to cost $1.29/€1.29/£0.99. Legacy tracks with FairPlay DRM would still be available for $0.99/€0.99/£0.79 – albeit with lower quality sound and DRM restrictions still in place. Users would be able to 'upgrade' the EMI tracks that they had already bought for $0.30/€0.30/£0.20. Albums were also to be available at the same price as their lower quality, DRM counterparts and music videos from EMI would also be DRM-free. The higher-quality, DRM-free files became available worldwide on iTunes on 30 May 2007, and were expected to appear on other music download services soon thereafter.
Following this decision, Universal Music Group also announced sales of DRM-free music (which was described as an experiment).[36]
In May 2006, EMI attempted to buy
Terra Firma takeover
After a decline in the British market share from 16% to 9%, and the announcement that it had sustained a loss of £260 million in 2006/2007,[39][40] in August 2007 EMI was acquired by Terra Firma Capital Partners[39] for £4.2 billion.[41] Following the transition, several artists including Radiohead left EMI, while other artists such as Paul McCartney had left ahead of the takeover.[39] At the same time, the Rolling Stones signed a one-album deal with Interscope Records/Universal Music Group outside its contract with EMI, which expired in February 2008,[42][43] and then in July 2008 signed a new long-term deal with Universal Music Group.[44] The Terra Firma takeover was also reported to have been the catalyst behind a lawsuit filed by Pink Floyd over unpaid royalties.[45] In January 2011 Pink Floyd signed a new global agreement with EMI.[46]
Around the same time, Guy Hands, CEO of Terra Firma Capital Partners, came to EMI with restructuring plans to cut between 1,500 and 2,000 jobs[40] and to reduce costs by £200 million a year. As a result, the UK chief executive Tony Wadsworth left EMI after 25 years in January 2008. The cuts were planned to take effect over the year 2008, and would affect up to a third of EMI's 5,500 staff.[40] Thirty Seconds to Mars tried to exit their contract with EMI following the layoff of its staff and due to unpaid royalties, prompting the label to file a lawsuit for $30 million citing breach of contract.[47] The suit was later settled following a defence based on a contract case involving actress Olivia de Havilland decades before.[48] Jared Leto explained, "The California Appeals Court ruled that no service contract in California is valid after seven years, and it became known as the De Havilland Law after she used it to get out of her contract with Warner Bros."[48] Many industry watchers viewed the suit as a punitive harassment meant to scare other musicians.[47] The band's troubles with the label resonate through their third studio album This Is War (2009) and were the subject of the 2012 documentary Artifact.
In 2008, EMI withdrew from the South-East Asian market entirely, forcing its large roster of acts to search out contracts with other unaffiliated labels. As a result, the South-East Asian market was the only region in the world where EMI was not in operation, although the record label continued to operate in Hong Kong and Indonesia (which was named Arka Music Indonesia).[49] The Chinese and Taiwanese operation of EMI as well as the Hong Kong branch of Gold Label, was sold to Typhoon Group and reformed as Gold Typhoon. The Philippine branch of EMI changed its name to PolyEast Records, and was a joint venture between EMI itself and Pied Piper Records Corporation. The physical audio and video products of the label have been distributed in South-East Asia by Warner Music Group since December 2008, while new EMI releases in China and Taiwan, were distributed under Gold Typhoon which was previously known as EMI Music China and EMI Music Taiwan, respectively. Meanwhile, the Korean branch of EMI (known as EMI Korea Limited) had its physical releases distributed by Warner Music Korea. EMI Music Japan, the Japanese EMI branch, remains unchanged from the reflection of Toshiba's divestiture to the business by EMI buying the whole branch way back July 2007, making it a full subsidiary.[50][51]
In July 2009, there were reports that EMI would not sell CDs to independent album retailers in a bid to cut costs,[52] but in fact only a handful of small physical retailers were affected.[53]
Citigroup ownership
In February 2010, EMI Group reported pre-tax losses of £1.75 billion for the year ended March 2009, including write-downs on the value of its music catalogue.[54][55] In addition, KPMG issued a going concern warning on the holding company's accounts regarding an ability to remain solvent.[56]
Citigroup (which held $4 billion in debt) took 100% ownership of EMI Group from Terra Firma Capital Partners on 1 February 2011, writing off £2.2 billion of debt[57] and reducing EMI's debt load by 65%.[58] The group was put up for sale and final bids were due by 5 October 2011.[59]
Sony/Universal/Warner sale
On 12 November 2011, it was announced that EMI would sell its recorded music operations to
On 21 September 2012, the sale of EMI to UMG was approved in both Europe and the United States by the
Universal Music Group completed its acquisition of EMI on 28 September 2012, Universal retained EMI's former European labels in Ireland, Italy, the Netherlands, Germany, Switzerland, Austria, Hungary, and Finland.
Universal Music has continued to operate EMI entities it retained using the EMI name and formed Virgin EMI Records as a UMG label unit in the UK.[72] The former EMI Records Ltd. was renamed Parlophone Records Ltd. in 2013,[73] when Warner Music Group acquired Parlophone Music Group which has the rights to the old EMI Records catalogue.
The Australian and New Zealand EMI Columbia catalogues, including recordings by John Farnham, who went by Johnny during his time with the label, were ceded to Universal Music Australia's imprint EMI Recorded Music and Universal Music New Zealand respectively.[74][75]
Warner Music incorporated EMI Classics and Virgin Classics into its Warner Classics unit with the EMI Classics artist roster and catalogue absorbed into the Warner Classics label and the Virgin Classics artist roster and catalogue absorbed into the revived Erato Records label.[76]
On 14 November 2013, EMI's Middle Eastern branch was folded into Universal Music, causing the distribution of Warner Music Group's releases in that region to be moved to Universal Music.[77]
On 30 June 2014, Universal Music Group re-established EMI's Taiwanese division, with A-Mei, Rainie Yang and Show Lo signing first to the label.[78]
In May 2016, an independent company, Blue Raincoat Music, bought most of Chrysalis's British catalogue from Warner Music,[79] making Chrysalis an independent label again. However, the remainder of Chrysalis's British catalogue, namely other past artists Spandau Ballet, Jethro Tull, Ramones and The Proclaimers, stayed with Parlophone in the UK and (excluding Ramones) Rhino Entertainment in the United States. The Ramones American back catalogue remained with Island's sister label Geffen Records, the successor of MCA Records, which previously distributed the band's releases on Radioactive Records, and is licensed to Universal Music Enterprises. Additionally, the majority of Chrysalis's American catalogue also remained with Capitol Music Group, parent of Island's and Geffen's sister label Capitol Records, and is currently distributed by that label. Debbie Harry's only Chrysalis album with an American release, KooKoo, was later divested by Capitol. The European Chrysalis catalogue, including Harry's four albums, plus the rights to ten artists not originally signed to the label are owned and distributed by Blue Raincoat.[80]
The number of initial non-Chrysalis artists was later increased to 11 after adding former EMI artists Naked Eyes. Belinda Carlisle's only Chrysalis album, A Woman & a Man, had its distribution and rights outside the US reverted to CMG's Virgin Records, Carlisle's former label which was the second in her career.
Also in May 2016 the history of the record label was examined in the hour-long BBC documentary EMI: The Inside Story.[81]
On 16 June 2020, Universal rebranded Virgin EMI as EMI Records, reopening the iconic label, and named Rebecca Allen, former president of Decca Records, as the new EMI's president. UMG has continued to operate Virgin as an imprint of EMI.[82]
Operations
Entertainment and Leisure
In 1964 EMI acquired Blackpool Tower from the Bickerstaffe family.[83] In 1967, they also took over the Winter Gardens complex in Blackpool.[84]
In 1967, EMI acquired the Grade Organisation, the UK's largest showbusiness talent agency, for £7.5 million.
Film, Theatre and Television
EMI Films was created in 1969 following the acquisition of
Their flagship cinema was the
In 1974, the Film & Theatre Corporation was split into EMI Cinemas and EMI Leisure Enterprises.[87] On formation, EMI Cinemas ran 272 cinemas in the UK, including those of ABC.[87]
Following EMI's merger with
EMI Leisure
EMI Leisure Enterprises was formed in April 1974 and controlled Blackpool Tower; EMI's 16 squash clubs and five bowling alleys; discotheques; 23 licensed premises and other amusement interests. It began developing new leisure businesses, including
Following the merger with Thorn, part of EMI's leisure interests were sold to
The Winter Gardens in Blackpool were sold in 1983 to First Leisure.[84]
Hotels and restaurants
In 1972 EMI Hotels won a bidding war against Ralston Purina to buy the Golden Egg group from the Kaye brothers for £14 million, which included a stake in Angus Steakhouse restaurants[94] and the Selfridge Hotel, which opened in July 1973.[87]
In June 1977, EMI acquired the Tower Hotel, London.[92] At the end of 1978 they owned 4 other hotels, Royal Horseguards Hotel; Royal Angus; Royal Trafalgar; and Royal Westminster.[92]
As well as Angus Steakhouse their restaurants also included Wimpy Bars, Picnic Basket and Tennessee Pancake Houses.[92]
Following the merger with Thorn, seven hotels and 12 Angus Steakhouse restaurants were sold in July 1980 for £23 million to Scottish & Newcastle Breweries.[95][96][93][97]
EMI Music
Labels under the EMI banner
Past and present EMI musicians
EMI Music Publishing
As well as the well-known record label the group also owned EMI Music Publishing, which was the largest
EMI administered the publishing rights of over 1.3 million songs, headlined by Queen, Carole King, The Police, the Motown catalog, Kanye West, Alicia Keys, Drake, Sia, P!nk, Pharrell Williams, and Calvin Harris. EMI also owns the recorded catalogue of Philles Records, with distribution handled by Sony's Legacy Recordings.
EMI's music publishing operations were sold to a consortium led by
Criticism
CD price fixing
Between 1995 and 2000 music companies were found to have used illegal marketing agreements such as minimum advertised pricing to artificially inflate prices of compact discs in order to end price wars by discounters such as Best Buy and Target in the early 1990s.[100]
A settlement in 2002 included the music publishers and distributors;
On
See also
- Pathé Records(Baak Doi)
- EMI Archive Trust
- EMI Christian Music Group(EMI CMG)
- EMI Films
- EMI Songbook Series
- EMI Televisa Music/Capitol Latin
- Jim Fifield
- The HMV Group
- Picture Music International
- List of EMI artists
- List of EMI labels
- List of record labels
References
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Further reading
- International Directory of Company Histories, St. James Press.
- Joshua R. Wueller, Mergers of Majors: Applying the Failing Firm Doctrine in the Recorded Music Industry, 7 Brook. J. Corp. Fin. & Com. L. 589, 597–604 (2013) (describing Terra Firma's purchase of EMI, Citigroup's seizure of the company, and the subsequent break-up, sale, and antitrust scrutiny surrounding the music company).
- Peter Martland, Since Records Began: EMI, the first hundred years. Batsford (London) 1997. 359pp. ISBN 0-7134-6207-8