EMI: Terra Firma Ready to Clean House…
Posted November 13, 2007 — in Music News
According the NY Post, Terra Firma CEO Guy Hands is telling prospective partners that they can nearly quadruple their money in the struggling major label and cash out within five years.
Terra Firma plans to improve its EMI investment by cutting costs…
The cost cutting includes reducing A&R and marketing costs by 58 million by using social networks and user generated web sites like Myspace to discover and promote talent, cut $31 million in sales and distribution, and improve the recorded music businesses’ cash flow by driving over $700 million in from
online and mobile music. Terra Firma also has $100 million set aside for purchases of small indie labels. (NY Post)
I’m not sure how I feel about this. Until social networking sites can show a real return of sales and income, I just can’t get behind them 100% for all A&R and marketing. It feels like entire demographics are going to be left behind, ones that still are not, nor probably ever will be, comfortable with the internet as a major tool and source of information. But that’s just me.
Comment by Matt — November 14, 2007 @ 8:23 am
Agreed with Matt above - a lot of the acts that have allegedly “made it” via Myspace were really signed well before they’d made their first social networking friends.
Comment by Sentric — January 22, 2008 @ 7:32 am