[atlantaprog] another nail in the coffin

I wonder who the "niche and underperforming" artists are.  More importantly, I 
wonder how much of a chance the label gave those artists before unceremoniously 
dumping them.  Remember, this is the same company that signed Mariah Carey for 
70 million pounds, then gave her another 19 million for get rid of her...

Brian
LO


Music Giant EMI Axes Artists and 1,500 Jobs 

LONDON (Reuters) - Music giant EMI will cut 1,500 jobs, axe one fifth of its 
recording artists and stop making its own CDs and DVDs in Europe and the United 
States in a bid to cut costs, the British firm said on Wednesday.
EMI, home to the Rolling Stones, Coldplay and Radiohead, also said recorded 
music sales in the year to end-March 2004 held close to the previous year's 
levels, despite rampant piracy and competition from other entertainment.

Announcing it would close its U.S. manufacturing plant in Jacksonville, 
Illinois and transfer its Dutch plant to another firm, MediaMotion, EMI 
forecast savings of at least 50 million pounds a year.

EMI said it would take a cash charge of 75 million pounds and a non-cash charge 
of around 80 million, tied to writedowns and its shrinking artists roster, in 
2003/2004.

"The time is right to further reposition EMI Music. Exiting manufacturing in 
our two primary regions of Europe and the US will allow us to lower our costs 
while flexibly meeting our supply needs," said EMI Music's Chairman Alain Levy.

"We believe that by concentrating our efforts on a tightened roster of artists 
we will increase our revenue-generating potential while reducing our costs." 
Niche and under-performing artists would go, EMI said, without giving names.

In recent years EMI has seen two merger attempts blocked by regulators, one 
with Warner Music and one with Bertelsmann's music arm BMG. Last year it bowed 
out of the race for Time Warner Inc.'s music business. ($1=.5502 Pound)

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