EMIs Disney distribution deal hangs in balance

Disney is understood to be considering replacing EMI as the international distributor of its soundtracks. It is reported to have started talks with rival Universal Music Group.

The news will come as a blow to the struggling record label, which was bought by private equity group Terra Firma last year and has faced a series of job cuts and artists leaving the label.

The existing deal allows EMI to handle the music rights for major international films such as High School Musical.

It is thought that Warner Music, which held the contract before EMI took over in 2005, may also be in the running.

Guy Hands, EMI chairman, has announced that he was cutting about 2,000 jobs in January and it is understood that at least half the jobs will come from marketing (MW January 17).

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