New plan for EMI while artists prepare to strike

    Guy Hands, the EMI label chief since its takeover by corporate giant Terra Firma, has delivered his plan for returning the label to solvency. While Hands’ included a vision for the future that involves EMI’s artists reaping the profits from their recordings, many of his initial moves are based at cutting costs. In addition to the two thousand jobs cut from EMI, artists will no longer be granted large advances. The label will now front enough to record the album, and then give compensation based on the success of the recordings. No matter how cringe-inducing this pay for play might be to music fans not in the lowest common denominator, looming even larger is a potential strike by some of EMI’s biggest artists. Unconvinced that the label has the label now has the resources for a proper record launch, acts such as Robbie Williams, Coldplay, and the Verve have publicly stated they are unsure about releasing their new albums. This action follows Radiohead’s departure from the label, which hurt EMI’s prestige as well as its finances. Whatever the outcome of Hands’ initiatives, he should keep in mind that no money will be saved or made if records don’t hit the street his label on them. [The Daily Swarm]