EMI unveils restructuring move

EMI unified its music label and publishing arms under one boss today as part of a restructuring it hopes will boost returns from artists and songwriters.

The group, whose acts include Gorillaz and Coldplay, said it believed it would be better placed to exploit opportunities in music markets if EMI Recorded Music and EMI Music Publishing were working together under one head.

Roger Faxon has led EMI Music Publishing since 2007 and will now take charge of recorded music in his new role as group chief executive. EMI said the review repositioned the business as a comprehensive rights management company.

The company said: “More music is being used than ever before, despite the continued decline in global music revenues.

“As a result, the management structure of EMI is being changed to enable the company to reposition itself as a comprehensive rights management company that can take full advantage of all global opportunities in all markets for music.”

The review comes after EMI’s private equity owner raised additional funds to prevent the business from slipping into the hands of US bank Citigroup.

Terra Firma bought EMI for €5bn in 2007 on the eve of the credit crunch, borrowing €3.83bn from Citigroup to fund the deal.

But the music group’s finances were stretched by difficult trading conditions, leading to a €2.09bn loss for the year to March 2009. Last month’s extra funding meant EMI avoided breaching the terms of its loans for another year.

EMI Music is home to some of the world’s best known artists through record labels such as Blue Note, Capitol and EMI Records. The publishing division boasts a music catalogue containing more than a million songs.

Charles Allen, who was previously chairman of EMI Recorded Music, is to be retained as an adviser to EMI and Terra Firma.

Mr Faxon said: “I believe that the two divisions working in concert with one another as a global rights management business, can and will deliver for the artists and songwriters that we are privileged to work with now and in the future.”