October 25, 2008
Lack of Adaptation Prompts EMI Losses
The EMI music company has lost $1.2 billion through its inability to adapt to changes in the U.S. music industry, a financial group says.
A report from the Maltby Capital group said the "changing consumer market for music" caused the major music label to lose revenue to the tune of $1.2 billion in the financial year leading up to March 31, the Los Angeles Times reported Friday."EMI Music had a history of signing great artists but had not adapted sufficiently to the changing consumer market for music," the Maltby report says.
Maltby Capitol is controlled by the private equity firm Terra Firma, the Times said. Terra Firma, which is owned by financier Guy Hands, currently owns EMI.
The report said that while EMI has signed successful musical artists such as Coldplay and Kate Perry, there are no immediate fixes for the company's financial downslide, the Times reported.
"(T)here should be no false expectations," the Maltby report said. "EMI cannot be turned around overnight."