EMI Music has hitched-up with competing major label the Warner Music Group to expand their existing partnership for music marketing and distribution in India, the Middle East and begun joint ops in Turkey.
The multi-year license agreement sees EMI Music continue to serve as the local physical distributor of Warner’s repertoire in India and the Middle East, which the label has been handling since 2005.
Distributors of physical music are suffering in the current climate, with news yesterday that Pinnacle has gone into administration followed by new revelations that major label EMI is looking to exit physical distribution of its products altogether.
Seems the major is speaking with other major labels in the US with a view to letting go of its warehouses and distribution network there for a sum of up to $30 million. Instead of handling physical product in an ailing market, EMI will have its music ferried about the United States by a competitor.
EMI Music has appointed one of the first wave of internet industry plus music visionaries, PeopleSound.com founder Ernesto Schmitt as president of its catalogue business, reporting to Elio Leoni-Sceti, EMI Music’s chief executive. He will join EMI next month.
Schmitt, 38, joins EMI from DSG International, Europe’s second largest consumer electronics retailer which operates the Dixons, Currys and PC World stores.
A report claims Warner Music has a new plan for its business – and it’s quite a practical viewpoint the company is reportedly adopting – it’s moving to become an international music marketing company.
To quote the Bangkok Post: “After struggling for several years, Warner Music Thailand has introduced a new business model to cope with the plummeting sales of its physical products, but the company describes the model as only the first step in finding a definitive response to its business challenges.