EMIís restructuring is reported to have brought greater savings than had been previously anticipated. EMI are the only of the majors without a larger parent company to bail them out and have thus been forced to react to declining music sales sooner than other labels. The end of the CD replacement cycle, piracy and competition from other media formats such as computer games have pushed the music industry into a period of massive readjustment.
The music industry isnít dying, but it is going to emerge from this era a smaller beast than it entered it. EMI have been forced to cut their cloth earlier, perhaps, than if they had had a deep pocketed parent company to pay their bills. In the short term this has been widely interpreted by financial analysts as the sign of a struggling company that is in worse shape than its competitors. I think what we will actually see is that EMI will be in a better shape in a few yearsí time than many other labels because it prepared itself earlier for the realities of the music industry in the first part of 21st century.
EMI will also be better placed to compete than others due to its widespread investment in new media ventures and partnerships. The music industry is being forced to become increasingly imaginative in identifying new and alternative revenue streams and this is only going to become more central to curbing losses. EMI are doing everything right to ensure that they remain one step ahead of that curve, sowing their seeds widely to increase their chance of one taking root somewhere and providing valuable new revenues streams.