If, like me, you write about the music business every day, for years now you’ve been speculating about the future of the British major music company EMI and about the prospect of Google launching an iTunes-competing download store. And this week both stories sort of reached a conclusion.
As you no doubt saw, last weekend the current owners of EMI – the bank Citigroup – announced it was selling the music firm. This announcement had been a long time coming, Citigroup repossessed the music major off its previous owners at the start of the year and admitted almost straight away that it would look to sell the company on at some point, and it had been talking to possible buyers for several months. As expected, Citi split the company into two in order to sell it, selling the bit of EMI that makes and sells records to Universal Music, and the bit that manages and monetises the copyrights in songs to a consortium led by Sony.
The split, and the fact both sides were bought by existing major players in music, while not a surprise, is important, because it means EMI basically ceases to exist as soon as these deals go though. The EMI name might still be used, but there will not be an EMI company. At eighty years young, and with an earlier history that went as far back as the 19th Century, I can’t be the only one who finds that a little sad. Even more so for a British music fan like myself – because while EMI was actually created by Americans working in London, and for its final year was owned by an American bank, it always felt like the British record company, with its heart in London and its most famous signings coming from the UK.
So, the end of an era indeed. Another era – albeit a much shorter one – also ended this week when Google launched their own download store. The arrival of ‘gTunes’ has been rumoured on and off for years, and there have been a number of big announcements from Google in the past that we expected would announce a Google MP3 platform, but until yesterday we were always left disappointed.
To be honest, there was a little disappointment too when Google finally did launch its big music service, because while it looks pretty slick, it doesn’t really do anything you can’t get from another music platform. Having waited this long, I think we all thought something really special would be announced. Though the Artist Hub, which allows self-releasing artists to capitalise on the new venture is interesting, and will definitely be worth checking out if you’re an artist doing the DIY thing.
So two eras at an end for music business journalists like me. Though another era seems to have only just begun. There has been increased chatter among some artists and smaller labels of late about Spotify-style services, to the effect that artists who put their music on such streaming platforms are seeing their iTunes-style download sales decline, and that the money they receive from Spotify et al is nominal, and goes nowhere near covering the loss in other digital revenue.
It started off with a few isolated artist blog posts. Then a few indie labels started withdrawing their content from the streaming channels. Then big artists like Coldplay and Tom Waits chose not to put their new albums on Spotify, and it was speculated that was to protect other download sales. And then this week a British dance music distributor announced over 200 of its labels would be boycotting the streaming platforms moving forward, kicking off all kinds of online debate in both the US and Europe.
I won’t get into this actual debate just now – except to say their are arguments on both sides – but with tweets and blog posts appearing on this issue all the time, there’s certainly plenty for us music business writers to report on still, even if the big “what will happen to EMI?” and “when will Google launch a music service” sagas are at an end.
Sections: From Inside Track - Music Stuff | Tags: Coldplay, EMI, Google Music, Spotify, Tom Waits











