EMI to allow brands to sponsor artists

EMI, the ailing record company, is planning to offer brands the chance to sponsor its artists for the first time. The plan aims to boost flagging revenue at the company, which is owned by private equity company Terra Firma.

Guy Hands, the chief executive of Terra Firma (pictured), will reveal plans today (January 15) as he seeks to reassure disgruntled acts who have been threatening to effectively strike.

Coldplay, Robbie Williams and The Verve have all said they may withhold their next albums until they receive assurances from Hands about EMI’s ability to market and distribute them as well as the company’s wider financial health.†

Terra Firma bought the ailing music group for £4 billion last year. Hands has angered EMI’s top acts with cost cutting plans, which include slashing the company’s marketing budget from 20% of total spending to as little as 12%. EMI artists have also been infuriated at the suggestion that their advances will also be subject to major cuts.

It is understood some that it will also be announced today that the record company is planning to bring its sales, marketing, manufacturing and distribution together in one division and under one management team. It will also increase its focus on its digital business in a bid to boost sales.

It is thought that Hands will also announce plans to cut as many as 2000 jobs at EMI, a third of its staff.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here