Bmi Analysis
1.1 Introducing EMI
Electric and Music Industries or EMI as it is more commonly known is one of the world’s big four music companies today.EMI was brought as a merger in 1931 (in response to the Great Depression that had also hit the recording industry) of two major players in the British recording industry at the time, The Gramophone Company and The Columbia Graphophone Company,
They are credited with opening the world’s first custom-built recording studio at Abbey Road in London, from where in 1962 the Beatles started recording and went on to become one of the most commercially successful and critically acclaimed acts in the history of popular music. It also owns Capitol Records in Los Angeles and has a number of top artists on their Label such as Coldplay, Pink Floyd, and Robbie Williams.
In 2007, EMI was acquired by Maltby Capital the acquisition vehicle setup by Guy Hands the chief of the parent company Terra Firma for whopping sum of £4.2bn. The deal was sealed just weeks before the global financial crisis, and now the firm admits that the company is worth only around £2.2bn. EMI is currently under risk of being seized by their main creditor Citibank if they are not able to persuade investors to inject another £120m. If Citigroup takes control of the label, then it is likely that Citigroup would sell the record music business to Warner.
2 External Environment Analysis
2.1 Classification of the External Environments
Figure 1 is a graphical description of the external environment (Unit 2, B820 Strategy) classified into the Macro (Far) and Industry (Near) environments. This works as a baseline for the different levels of analysis that would be carried out on the external environment
• Figure 1 Macro(Far) and Industry(Near) environments
2.2 Macro (Far) Environment
Table 1 analyses the Macro Far Environment based on the STEP Model (Unit 2, B820 Course Book).
Governing Force In relation to EMI Cons Pros
Sociological There
Electric and Music Industries or EMI as it is more commonly known is one of the world’s big four music companies today.EMI was brought as a merger in 1931 (in response to the Great Depression that had also hit the recording industry) of two major players in the British recording industry at the time, The Gramophone Company and The Columbia Graphophone Company,
They are credited with opening the world’s first custom-built recording studio at Abbey Road in London, from where in 1962 the Beatles started recording and went on to become one of the most commercially successful and critically acclaimed acts in the history of popular music. It also owns Capitol Records in Los Angeles and has a number of top artists on their Label such as Coldplay, Pink Floyd, and Robbie Williams.
In 2007, EMI was acquired by Maltby Capital the acquisition vehicle setup by Guy Hands the chief of the parent company Terra Firma for whopping sum of £4.2bn. The deal was sealed just weeks before the global financial crisis, and now the firm admits that the company is worth only around £2.2bn. EMI is currently under risk of being seized by their main creditor Citibank if they are not able to persuade investors to inject another £120m. If Citigroup takes control of the label, then it is likely that Citigroup would sell the record music business to Warner.
2 External Environment Analysis
2.1 Classification of the External Environments
Figure 1 is a graphical description of the external environment (Unit 2, B820 Strategy) classified into the Macro (Far) and Industry (Near) environments. This works as a baseline for the different levels of analysis that would be carried out on the external environment
• Figure 1 Macro(Far) and Industry(Near) environments
2.2 Macro (Far) Environment
Table 1 analyses the Macro Far Environment based on the STEP Model (Unit 2, B820 Course Book).
Governing Force In relation to EMI Cons Pros
Sociological There
References: • http://digitalmedia.strategyeye.com/article/nW0c62d7FKw/2010/06/21/emi_unites_publishing_and_music_under_new_ceo/?tok=6acdbca9c73b • http://ftalphaville.ft.com/blog/tag/maltby-capital/ • http://www.guardian.co.uk/business/2010/aug/18/emi-shareholder-investment-debt • http://en.wikipedia.org/wiki/Record_label • http://news.bbc.co.uk/1/hi/entertainment/2039365.stm • http://www.riaa.com/physicalpiracy.php • http://www.guardian.co.uk/business/2010/jan/21/music-industry-piracy-hits-sales • http://en.wikipedia.org/wiki/Syco 6.3 Word Count • The word count for the sections is 2900 of the total 3000 permitted for TMA01.