MusicDish e-Journal - November 22, 2017
MusicDish Advertising Network
Search MusicDish e-Journal (Advanced)
Subscribe To MusicDish e-Journal
About | Contact | Advertise | RSS | Submit Article | Submit News | Artist Development | Premium PR Distribution
Mi2N | MusicDish*China | MusicDish Network | MusicDishTV | Urban Music News Network

Labels Can Succeed in Today's Market
By Eric de Fontenay (Founder & Publisher)
(more articles from this author)
Comment | Email | Print | RSS

While I've focused on the precarious position of the recording sector in the realigning music industry, I've also claimed that change among labels had to start at home: restructuring their business and developing a new corporate culture to reflect the new market conditions. For edel music & EMI, that had suffered a significant downturn in their businesses, the formula appears to be a winner.

edel music AG, a large European independent music group, announced it had reversed its negative performance with a positive EBITDA of 3.7 million Euro for the first six months of the financial year 2002/2003 as compared to minus 3.2 million Euro for the same period a year ago. Of note is the significant improvement in the group's operational cash flow from a negative 8.9 million Euro to a positive cash flow of 2.2 million Euro for the first half of the current financial year. The remarkable turnaround, in the face of falling sales are credited to an extensive restructuring plan implemented by the group last year. "The positive development of the operational cash flow shows that our companies have learned to work much more efficiently. Now our main goal is to improve our margins and secure the financial turnaround"


In this case, what works for independent labels can be equally effective for majors. Take EMI's "dramatic turnaround" of its recorded music division:

* Operating profit increased 81% to 150.5m on turnover down 10.2% at constant currency
* EBITA margins more than doubled from 4.1% to 8.5%, driven by both fixed and variable cost savings
* Substantial improvement in North America, returning to profitability with 12% point margin increase

And while the label faces the same harsh market conditions as everyone else, including a 12.6% drop in recorded music sales, the positive results were driven far more by "far-reaching restructuring and reorientation plan with the objective of changing completely the way we work" than any new anti-piracy scheme.

"We delivered the promised substantial improvement in profitability driven by the turnaround of EMI Recorded Music, another solid performance from EMI Music Publishing and tighter financial management across the group. Furthermore, we have invested time and resources in strengthening our culture and management capabilities to equip our businesses to compete more effectively in tough market conditions and a rapidly changing environment," remarked Chairman Eric Nicoli.

This new corporate culture emphasizes internal management accountability, including an "aggressive policy of refocusing Recorded Music on its core business by streamlining the artist roster and exiting unprofitable operations and costly joint ventures... While we recognize that, in the long term, sales growth is an important objective, the year ended 31 March 2003 was clearly one during which we repositioned EMI Recorded Music on profitable foundations."

But perhaps the most encouraging statement from the company was its vision for the future: "In a world in which more music is being consumed than ever before, at EMI, with our extremely deep and rich music content bank, we have a unique opportunity to develop new revenue streams."

Related News from Mi2N:
» Half-Year Results 2002/2003: Edel Music Achieves Operational Turnaround
» EMI Group PLC Preliminary Announcement For Year Ended 31 March 2003

Home » News Beat » Labels Can Succeed in Today's Market
Email |Print |Comment |RSS

back | top

MusicDish Advertising Network

News Beat

» Nordic & British Musicians' Unions' Joint Statement on Sexism in the Music Industry

» Women Make An Impact On The 2018 MPG Awards Shortlist

» Two-Sides of Copyright Finance: Sound Royalties & Kobalt

» Career Moves: ROLI, Live Nation Sweden, Music Glue, BBR Music Group, Warner/Chappell Music Spain & Blue Night Soundscapes

» Europe's Digital Music Leaders Form Alliance

News Beat Directory

» [2017-11-21] Joint Statement By The Nordic Musicians' Unions And British Musicians' Union; Discussions On The Issue Of Gender Inequality, Sexism And Sexual Harassment, The Scale Of Which Had Been Highlighted By The Recent #metoo Campaign

» [2017-11-13] Women Make An Impact On The 2018 MPG Awards Shortlist; Nearly A Quarter Of Those Named This Year Are Female, Proving That Music Production Is No Longer A Bastion For The Boys

» [2017-11-13] The Nashville Musicians Sound Healthcare Plan Rolls Out; Sound Healthcare & Financial Announced The Formation Of A True Group Health Insurance Policy Plan For Musicians And Industry Professionals

» [2017-11-09] Streaming & Listening Diversity - Spotify Case Study; Will Artists Have An Easier Time Finding An Audience, Or Will Streaming Focus Global Attention On A Small Number Of Stars?

» [2017-11-09] Two-Sides Of Copyright Finance: Sound Royalties & Kobalt; Sound Royalties Unearths Millions In Undistributed Royalties While Kobalt Launches Fund To Invest In Music Copyright

» [2017-11-08] Career Moves: ROLI, Live Nation Sweden, Music Glue, BBR Music Group, Warner/Chappell Music Spain & Blue Night Soundscapes; ROLI Chief Creative Officer, Live Nation Sweden Managing Directors, Music Glue Global Head Of Business Development, BBR Music Group VP Of International, Warner/Chappell Music Spain Managing Director And Blue Night Director Of Music Clearance

» [2017-11-08] Europe's Digital Music Leaders Form Alliance; European Digital Music Companies Launch Of Digital Music Europe

» [2017-11-05] Pandora Subscriber Base Grows To Over 5 Million; Pandora Premium Paid Subscribers Cross The 1 Million Milestone In October 2017

» [2017-11-05] Hybrid Studios Announces Online Mastering Services; Engineers Billy Klein And Brian Frederick Spearhead New Online Mastering Effort Through OC Studio

» [2017-11-05] Music Industry Betting On VR & AR For New Revenue; The Music Industry Is Making An Early Bet On VR & AR To Create New Revenue Streams Across All Their Lines Of Business

» [2017-11-04] Sound Royalties Unearths Millions In Undistributed Royalties; Nearly $14 Million In Undistributed Royalties Has Been Found By Music-focused Finance Firm Sound Royalties

» [2017-11-02] MusicDish*China October China Label Music Releases And Charts; Several Tracks From October Releases Have Charted On Chinese Music Portal Kanjian ING Top 10 Weekly Chart
MusicDish Advertising Network

follow MusicDish on
Follow MusicDish on Twitter

Mi2N Music PR

Hybrid Studios To Sponsor Unsigned Only 2018

Twice The Holiday Feel-Good Vibe From NYC Indie Rockers

LOVE MY COUNTRY! Is The Ultimate Compilation Series Featuring 20 Hot New Hits

Getting Restless

Your Favorite Color Releases "Heartache"

Melvin Alan Album "Wonderful Life"

Jean Louisa Kelly Presents A Personal Collection Of Songs From The American Standards And Musical Theater

Websites: Mi2N | MusicDish*China | MusicDish Network | MusicDishTV | Urban Music News Network
Services: Submit Article | Submit News | Submit Video | Artist Development | Premium PR Distribution

Copyright © 1997-2017 MusicDish LLC., all rights reserved.
About MusicDish e-Journal | Contact Us | Advertise | RSS | Internships