EMI Won’t Break IFPI Ranks
EMI chief Guy Hands has decided his company will stay in the IFPI, although it looks as if he’s persuaded the industry organisation to look at cost cuts in a similar way to how he has handled the U.K.’s only major.
After hinting a month ago that he would be looking at what it costs for EMI to be a member of various industry organisations and what value they represent, it appears the situation’s been resolved.
IFPI chairman and chief exec John Kennedy said it wouldn’t be a good move for EMI to cease its membership of the music industry trade associations, particularly when year-on-year global record sales have just dropped 10 percent.
"Frankly it would be a terrible mistake for Guy Hands to walk away from the trade associations because he’s got people working on his behalf to fight piracy and lobby governments to improve the environment and work with collecting societies around the world, which bring in US$1billion of revenues," Kennedy told the Daily Telegraph.
"It would be a blow to us, and to my mind, if you spend over £3 billion on an asset [as Terra Firma did on EMI last year] you have to preserve that asset."
EMI announced that it would stay on board March 10, with EMI international music president Jean-Francois Cecillon explaining that the company had agreed to work with the IFPI and other major labels on a "cost saving plan" that would benefit all parties.
"I am glad to say that on the basis of those discussions we have been able to confirm our continued membership of the IFPI and we look forward to working with the IFPI on the crucial issues that our industry faces," he explained.