The test is how committed they are to the Indies that’s at issue.

If you asked them if they would put the interests of any 100 members above the interests of the smallest of the majors, and they had to answer you truthfully, they would have to say “No we can’t do that”.

How about 200 members then? – Still no.

The entire membership? Still no.

Take the Chart for instance. As irrelevant as it is, the information that flows from it is important data. To market effectively Indies need this information, but the minimum charge to get it in any useful format is £3500.00. Recently as a result of pressure, the OCC introduced a lower subscription rate, but took away most of the useful tools – meaning Indies that can afford less are second class data citizens under the new deal. And in the 21^st Century, information is power, we all know that. Can it be the BPI just don’t want the Indies to catch-up?

Companies have to make a choice. You either take the “One nation” view, goes like this; “We are all record companies together, doesn’t matter if we are majors or Indies, we all have the same problems. Yes there are areas we disagree – but come on we can work it out. We are all basically all on the same side”

Then there is the other view; “things used to be like that, but now the majors only represent themselves. They don’t trust us anymore, maybe for good reason, but we have to move-on and develop an Independent agenda for what we want for our side in any negotiations, and we have to join that up with AIM and IMPALA. When we have that one-view, we can then negotiate with the majors”

Sorry, I am sure there are at least three hundred views in-between, but you have to lean towards one or the other.

I am going to be honest. If you are for the first statement, don’t vote for me, I ain’t delivering that. Mike Batt’s your man for that, not me. You want to know where you stand with me, I am at statement two. In fact I used to be a statement one man. After I negotiated the creation of the Vice-chairman position to level the playing field for the Indies, the BPI intervened to allow the majors a vote on the Independent they wanted to see as Vice Chairman. The Indies were split on their vote, but the majors as usual voted unanimously. No surprise then they voted for the man they most wanted to negotiate with; Batt.

In this life, we have to be careful what we wish for….we just might get it!

How does that Meat Loaf song go?

DMWmedia.com news feed reports

London - U.K.-based major record label EMI, which under new owner, Guy Hands’ Terra Firma, has already announced 1,500 to 2,000 layoffs at its recorded music division, now plans to eliminate an additional up to 1,000 positions, bringing the company’s total headcount from around 4,500 to 2,000, The Telegraph reported, citing sources.

The first round of layoffs was announced back in January.

The planned second round, expected to come in waves throughout the year, was necessary, people familiar with the situation told The Telegraph, because “the business will stall have more employees generating less revenues than its competitors at Warner Music and Universal.”

Ben Harrington writes for the Telegraph   

EMI’S owner, Guy Hands, is planning to axe up to 1,000 more jobs at the music company.

Mr Hands, who runs buyout firm Terra Firma, told senior EMI directors last week that the company’s headcount at its recorded music division will need to be reduced to around 2,000 people from 4,500, according to sources.

In January, EMI announced that it was planning to axe between 1,500 and 2,000 jobs at its recorded music division EMI Music. Several senior, highly paid executives in Britain have recently been made redundant.

They include Mike McMahon, senior vice-president of commercial and digital media. He will be replaced by Matthew Crosswaite, who was a vice-president in EMI’s digital division. Mr Crosswaite was yesterday formally appointed senior vice-president of sales, sources said.

Meanwhile, Ferdinand Unger-Hamilton, managing director of Virgin Records in Britain, is also understood to be leaving. He is said to have left the business last Friday.

People familiar with the situation said Mr Hands was looking to cut more jobs at the company because, even after the round of redundancies announced in January, the business will still have more employees generating less revenues than its competitors at Warner Music and Universal.

Insiders speculated that the next job cuts will come in waves throughout the year.

Terra Firma bought EMI for £3.2bn last year

Comment:

Seems like EMI’s desire to join the Independent sector is becoming a reality. Though with Ames gone is the rudder missing? Its all Hands to the deck then as less people are expected to do more. Its fine in SME’s, but corporate business expects experts in every field. Please don’t ask the Marketing people to get on the phone and sell – it’s not necessarily that they wouldn’t know how, its just not how corporations work.

As the bottom line is continually polished for improved performance, is anyone watching the top line as the rule of diminishing returns becomes ever increasingly significant?

Desperately in search now of dry land (terra firma), Hands continues to toss bodies off the ship in order to maintain ballast and stay afloat. But should the Admiral really be at the helm when he has no sailing experience and he’s already made a life raft out of his captains’ remains?

Well, you couldn’t make it up. BPI who on the 12^th February held an EGM to change its constitution aimed at retaining EMI as members, couldn’t convince more than 15% of its members to write in to change the fourth amendment to its Memo and Arts in as many years. Having written out to member asking for their support, BPI now find themselves in the embarrassing position of writing out to members again some time soon, this time asking them to reverse the decision.

Management gone mad?

BPI went to great pains to convince members to alter the constitution following EMI’s notice to quit BPI sister organisation IFPI. BPI’s vice chairman even wrote out asking for support, but only 1 in 6 companies responded. The rule which until the 12^th Feb. required members of BPI to also be members of IFPI was altered to uncouple from IFPI, in the hope that the lifeboats wouldn’t be dragged under with the ship.

EMI are on a collision path with its peers over ditching support for IFPI, which lobbies on piracy and political issues. EMI have handed in a notice to quit the IFPI International trade group. Under the circumstances this also means that BPI will have to come to terms with the fact that EMI will also have to leave the BPI National Group.

Realising all this put EMI on a path where defacto they had to resign from BPI, BPI bosses ordered their lawyers to draft changes to the constitution in order that they could hang on to EMI when the inevitable becomes a reality at the end of February.

However, our Industry friends, reliable sources and Industry insiders tell us totally on the QT, hush hush and on the low, that the nice people at SONY BMG were more than a little irritated over the shenanigans. Who can blame them? I have a SONY TV so I am on their side.

A lot of members thought the whole shooting-match farcical. That BPI would hold an EGM to change the rules to hang on to just one member! Now, within a month they are in the embarrassing position of having to hold another EGM on March 12^th to reverse the earlier decision, in order to hold on to an even more important member; SONY BMG.

One insider said; “it’s like Alien versus Predator in here”. There’s a lot of gnashing of teeth, saliva and tongue biting going on, and that’s just from the lawyers!

BPI sceptic Roger Ames alleged arch evil over lord and chief scheme plotter behind Guy Hands is plotting in his shed

The EMI digital away-day, two years ago at Wright Lane, should have been the writing on the wall. Ted Cohen ran new media and was the main speaker at an event meant to open up New media to music minors and give them a major perspective on how EMI were taking on the difficult issues. EMI flew people in from Asia and all over the world it was a very impressive event laid on just for the independents. But not just any independents, as EMI’s fellow BPI and IFPI members were not invited. At least one BPI council member resigned in outrage. But these were the days when Alain Levy was in charge and he made sure no IFPI or BPI members were present. Madness. Why invite half the Indies and bar the other half, especially the ones that are meant to be part of your own trade association?

EMI have been cosying up to AIM for the longest time. We are about to see what it all means. Industry insiders reckon Guy Hands will be planning to sit down some time soon with Martin Mills to work this all out. It would look like a major PR advantage that would take the music world by storm and might even do something for share prices for a change.

Putting £1 or 2M into AIM/IMPALA/ WIN would buy them a lot more influence, that kind of money doesn’t go very far with IFPI, after all BPI costs alone amount to nearly £8M a year to run the place. Then there is the opportunity to be closer to the Indie community. For instance they could meet new friends, then buy them!

Hands challenges music industry to find new ways to sell

By Margareta Pagano, Business Editor. Independent on Sunday

Published: 20 January 2008

Guy Hands, the boss of Terra Firma, the private equity group that has just taken over EMI, has accused the music industry of ignoring its customers.

Mr Hands said: “It’s got away with hiring artists and putting out boring CDs that very few people want to buy any more. It even tried to stop Napster, and stop youngsters from downloading. Why on earth would you want to stop people getting free music? What you have to do – and what we will do – is find ways for them to want to buy the music.”

Mr Hands was responding to criticism from within the industry since taking over EMI and planning 2,000 job cuts. He even agreed with Radiohead, the band that put its latest album on the Internet rather than launching a CD, asking its fans to pay what they wanted for the music.

“I completely understand why Radiohead did this,” he said. “The challenge now for us at EMI is to find new ways to finance and nurture young artists, and to please our customers, who come in all age groups and all want different things. CDs just don’t compare with records for their excitement. We want to find new products of the future.”

Hiring Artists? Of course the closest Hands got to the music Industry before - disliking the company so much - he bought it, was to “hire” a band to play at the bowling alley. Hands of course is a first rate ten-pin-bowler, he just hasn’t quite adopted the game in the same way as his peers, insisting on bowling “over-arm”. It’s fun to watch, but he destroys a lot of lanes before he makes a strike!

Of course things like “detail” and “business” are outside Guy Hands’ grasp, as, single-handed, he takes on the Industries’ united front against piracy. He embarrasses all of his senior management team, who have worked their entire lives to see EMI take their place shoulder to shoulder with the other majors and Indies in our combined effort against thoughtless governments, organised crime and a patent Office asleep on the job.

Hands has been scratching and saving all these years, putting away premium bonds and under-tipping at the restaurant next door to the Ivy, in order to save enough money to buy EMI. The next quote is so priceless even master card wouldn’t touch it; “It even tried to stop Napster, and stop youngsters from downloading“. Please penny for the Guy - our man at EMI takes the (half man half..) biscuit. Even the last idiot that ran EMI (from United biscuits) knew a bloody good chocolate digestive from an R&B band! Well, we think he did…

We all know he didn’t agree for Radiohead to make the release, he is wearing their clothes (bit tight, nice flairs, lose the spandex). In fact XL made the release not EMI; not that Hands would have noticed they weren’t on his label anymore. Muppet!

Tune in next week, when Guy Hands joins the remaining bands he has left on the label, playing Bass! OK, the Bass is easily picked up and practically anyone can play it providing they have a sense of rhythm and they can get the band a few gigs and drive the van… But Guy, its not a flaming double bass you moron, and don’t wear spandex over your suit - you flaming idiot.

Feed 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!!

He has already explained to the press he doesn’t want EMI to be about signing new music any more. And we all thought he was some savvy suit from the city who was going to streamline (cut and paste) operations and raise share values. If EMI doesn’t stand for new music any more, then what exactly does it stand for? And can EMI share prices sustain such profoundly moronic behavior.

You couldn’t make it up (Hide the Gin), Guy Hands is on the loose, cheque book in one hand and a hatchet in the other. Pity all the cheques have a face value of less than $1.00

If you dropped him in the jungle with a machete and a satellite phone, he wouldn’t last 5 minutes before he succumbed to the blade. With only his own head left, he simply couldn’t resist the temptation! Even though he was only a quarter of a mile from the closest City Bank.

With one in three EMI employees now officially INDEPENDENT, Guy hands proves the rule, you can parachute in experts from other industries and immediately they cease to be experts in our industry. Roll on the merger with the brothers at Warner. Meanwhile EMI have given IFPI (and defacto BPI) notice to quit, as Guy Hands seeks to save his subscription to the cost of running the industry. Is this the end of the IFPI, the BPI and the other trade associations if not the end of EMI? Watch this space.

12:27 | Wednesday January 9, 2008

By Ben Cardew MUSIC WEEK

Kickin Records founder and independent champion Peter Harris has died.Kickin Records founder dies 12:27 | Wednesday January 9, 2008 By Ben Cardew MUSIC WEEK

Kickin Records founder and independent champion Peter Harris has died. Harris passed away on Sunday January 6 after a long struggle with cancer. Harris founded the Kickin Records label, which pioneered early rave music, in 1988. It went on to release music from artists including The Scientist, Shut Up And Dance, and Messiah, as well as pioneering the careers of Grant Nelson, DJ Hype, Phil Asher, Matthew “Bushwhacka” B, Dominic B (Stanton Warriors) and Rennie Pilgrem. Kickin later became an umbrella company housing the Kickin Records, Slip ‘n’ Slide, Hardleaders, Stoned Asia and Slip ‘n’ Slide Blue labels, and also had a publishing arm in the form of Haripa Music Publishing in 1990.

Revolver Records owner Paul Birch, who worked with Harris on the BPI international committee, says that Harris had “a big brain but a bigger heart”. “He was big for independent cause and totally selfless, a strong advocate of moral issues,” he says. “He always fought the corner, not only for black music but for black executives. And he always had a very strong argument for more women in the industry.”

a7 Music managing director Seven Webster adds, “No music conference would be complete without the lifeblood of the industry, the happy independents like Peter. “I met Pete because as well as running my management company I once reviewed records for Teletext many years ago and as a result reviewed the first releases on Kickin Records. “From then on Peter would call me every Friday night and we would chew the fat about each other’s week and became the best of friends. While we both worked in our own separate space within the industry we really just maintained and shared a great and happy friendship and exchanged ideas, jokes and advice on a regular basis.” Harris is survived by his partner Cleon Roberts and three daughters, Jada, Yasheen and Neomi. The funeral will be held at All Saints Church, Clydesdale Road, Notting Hill, London, W11 1JE at 1030am on Saturday January 19. All friends are welcome. A bereavment gathering will also be held in Ladbroke Grove after the funeral service, with more details to follow.

Tributes flood in for Kickin founder

12:07 | Friday January 11, 2008

By Ben Cardew MUSIC WEEK

Tributes continue to flood in for Kickin Records founder Peter Harris, who died on January 6 after a long struggle with cancer.

Wendy Wyatt, who worked with Harris during her time as international manager at the BPI, says, “He was undoubtedly a driving force on the BPI international committee in revolutionising the way the British independents were represented overseas at the trade fairs like Midem, SXSW, Winter Music Conference.

“Always on my case to improve our services and promotion and pushing to get a better deal for the indies, generous with his praise and forever keeping me on my toes. He will be undoubtedly missed by all the many communities he was involved with, I was lucky to have known him.”

Former Kickin Records A&R man Lewis Dene adds, “Even though Peter and I had our ups and downs and he was never the easiest person to work with, the time I spent working for him at [Kickin associated label] Slip N Slide was a period I thoroughly enjoyed and still look back on with great fondness.

“Anyone that knew Peter will agree he was an incredible man and an inspiration of what could be achieved with little or no resources at your disposal. He was a true character who never did anything by the book, and that was what made him so unique and an inspiration to me and so many others. He’ll be missed.”

BPI communications director Matt Phillips says, “Peter was a real character and a great guy to know. But despite his great drive, passion and enthusiasm for the business, he was first and foremost a music lover and real family man. A key member of the BPI’s international committee for many years, he will be fondly remembered and sadly missed.”

BPI director of events Maggie Crowe says Harris was “a ray of sunshine on the British At Midem stand”. “For eight hours a day, he’d host his meetings on the stand and yet still drop a joke in between times. I can remember he was particularly proud to become a PPL Board member,” she adds. “He was a gorgeous human being - once met never forgotten.”

Harris is survived by his partner Cleon Roberts and three daughters, Jada, Yasheen and Neomi.

The funeral will be held at All Saints Church, Clydesdale Road, Notting Hill, London, W11 1JE at 1030 am on Saturday January 19. All friends are welcome, although the family has requested that well wishers send donations to St.Charles hospice where Peter spent his final night, rather than flowers.

A bereavement gathering will also be held at The Cobden Club, 170 Kensal Road, London after the funeral service from 1-6pm.

Donations can be made via cheques made payable to Pembridge Education Fund (along with a note indicating that the donation is on behalf of Peter Harris) to:

Palliative Care Unit,
St.Charles Hospital,
Exmoor Street,
London,
W10 6DZ.

Alternatively donations can be sent to:

Kickin Music Ltd.
282 Westbourne Park Road,
Notting Hill,
London W11 1EH

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Paul Birch - Revolver Music Limited