EMI sponsorship January 17, 2008
Posted by Paul Birch in : EMI, sponsorship , trackbackFeed taken from MIDEM -
EMI chief suggests corporate sponsorship for underperforming artists
17:04 Tuesday, 15th Jan 2008
Article by StrategyEye
EMI may introduce corporate sponsorship to open up new revenue sources for its artists, as part of a series of new measures unveiled by Terra Firma CEO, Guy Hands. Sponsorship would work in a similar way to how it does with football teams, Hands told the Financial Times. The musicians would provide a direct promotional tool for advertising clients either in live performance or as part of album sales and marketing. Artists failing to achieve international coverage could also be placed in touch with local business sponsors, providing them with access to smaller niche markets such as university performances. According to Hands, the vast majority of revenue generated by the label’s artists comes from just 200 of its 14,000 signed acts.
The suggestion is part of a wider strategy put together by Terra Firma to cut around USD391m in costs from the label in the near future. The CEO warned that artists unable or unwilling to bring in substantial revenue would face being axed, to allow focus to be placed on major revenue generators. Up to 2,000 jobs, or 30% of EMI staff, are expected to be cut, and the label’s marketing budget will shift from around 20% of total company spend to between 12% and 15%, with a greatly increased focus on digital marketing and promotion.
As if the whole music world isn’t working on this one. As Guy turns every corner, what he sees is new to him for the first time and he announce it as a revelation. Tune in tomorrow when Guy Hands discovers Cornflakes. Bloody hell these cornflakes are good, have you tried them with milk? Here is a secret Guy, just a spoonful of sugar on top, just don’t pour the milk in the flaming box you bloody moron, its all going over your suit!!
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