Warner and Sony Set for Battle
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01 15FEB Cover_v3_cover template 12/02/13 17:38 Page 1 07 9 776669 776136 THE BUSINESS OF MUSIC www.musicweek.com 15.02.13 £5.15 NEWS BIG INTERVIEW ANALYSIS 05 12 27 The legendary Sir George UK bosses Jason Iley and Mike Music Week talks to pop Martin accepts his MPG Smith discuss a promising year songwriting golden boy Outstanding Contribution Award ahead for the Universal label Wayne Hector Warner and Sony set for battle PARLOPHONE BUYOUT WILL DRAMATICALLY CLOSE THE GAP BETWEEN RIVAL MAJOR LABELS ANALYSIS market headed by Universal with I BY PAUL WILLIAMS a 35.0% share and Sony second with 20.8%. arner’s £487m buyout However, had Warner W of Parlophone Label controlled the artists and Group (PLG) will put repertoire coming from PLG in it within touching distance of 2011 and 2012 it would have Sony as Universal’s biggest rival claimed around 17.5% of the in the UK. albums market, just one and a That’s according to exclusive half percentage points behind Music Week research, which Sony, while it would have been suggests the addition of around the same distance behind repertoire from the likes of Sony on singles with a market Coldplay, David Guetta and Pink share of about 19.5%. Floyd will sharply narrow the On the albums side, the most market share race for second obvious powerful addition to its place. However, Universal could ranks will be Coldplay whose end up being 80% or more ahead Mylo Xyloto was EMI’s second of both rival players. top-selling album over the last Our study looked at the effect two calendar years, shifting of adding the vast array of nearly 1.4 million UK copies. frontline repertoire and back Other big sellers by acts now catalogue heading from what was joining Warner within this EMI’s UK artists and labels, years, led by David Guetta divestments. Again based on the EMI to Warner based on the last period include David Guetta’s including PLG to Warner and featuring Sia’s Titanium, which last two years, the addition of two years of singles and albums Nothing But The Beat, which Mute to BMG Rights. had sold around 975,000 copies Virgin and other EMI repertoire sales in the UK, according to shifted nearly 580,000 copies, Warner’s purchase does not in the UK by the end of 2012. it is retaining would have pushed Official Charts Company data. and Tinie Tempah’s Disc-overy include EMI’s 50% stake in Guetta was responsible for four up Universal’s UK albums market On both singles and albums with around 420,000 sales. Now That’s What I Call Music, of the 10 highest-performing share to around 35%, while in the UK, Warner was a distant The major, though, misses out which was responsible for six of EMI singles during the two years singles would have gone up to third place behind Universal and on EMI’s top seller between EMI’s 10 top album sellers over in question, while Coldplay about 40%, nearly double that of Sony for the period covering the 2011 and 2012: Emeli Sande’s the last two years. This stake will provided two of them. second-placed Sony. beginning of January 2011 to the Our Version Of Events, which be sold separately by Universal, What Warner will continue Warner fought off rivalry end of December 2012. It narrowly outperformed Mylo which already owns a 50% share to face, however, is Universal’s from the likes of BMG/Sony and controlled 12.7% of all album Xyloto. As a Virgin Records in the venture. utter domination of the UK a consortium headed by Simon sales, compared to 32.1% for artist she is now part of On singles Warner will market with its control now even Fuller and Chris Blackwell to Universal and 19.0% for Sony, Universal, which besides Virgin control exactly half of EMI’s 40 greater after its own $1.9bn acquire PLG last week. while it had 14.3% of a singles has been forced to divest all of biggest sellers of the past two (£1.2bn) EMI deal, despite I Full analysis next week Music Week’s 30 Under 30 revealed Music Week today reveals the 30 the world of labels, live, across the industry and truly another round of opportunities young professionals working in publishing, management, media reflects the cream of music for under-30s to be included - the industry that we’re tipping for and plenty more besides. professionals under 30 years of was sponsored by music industry big things in the coming years. It has been compiled age working in the UK today. recruitment specialist Arts & Our 30 Under 30 feature following hundreds of The special feature - which Media (artsandmedia.org). includes leading executives from nominations for young talent will be repeated in 2014, with I 30 Under 30: Pages 21-25 02 NEWS_v6_News and Playlists 12/02/13 17:41 Page 2 2 Music Week 15.02.13 www.musicweek.com NEWS EDITORIAL Sony promotes Mark Two’s company Collen as Shack exits when you’re ONE DIRECTION’S GLOBAL EXEC STEPS UP AT LABEL chasing Universal ony Music UK has S promoted Mark Collen to “ASSUMING EVERYTHING goes through the regulatory hurdles - and the role of SVP of I’m confident it should - I think we could be a force to be reckoned international operations. Former with, quite frankly.” VP of international Dave Shack When Music Week caught up with Parlophone Label Group UK will be leaving the company. chief Andria Vidler just hours after pen had inked paper on Collen (pictured right) joined WMG’s £487m cash (cash!) buyout of her employer last week, she Sony in June 2012 as global seemed in buoyant mood. Internally, the best outcome for an ex- marketing consultant for One EMI staff headcount of around 800-900 at PLG Europe was widely Direction. A former MD of considered to be a Warner’s buyout. The Access-owned major has Chrysalis Records, he also served made convincing sweet talk of international and strategic synergies in a number of senior roles at with Parlophone - and is now likely to draft in many of the key EMI Music, including as SVP of employees attached to its new subsidiary’s hottest talent. global marketing for Capitol As Warner Music global CEO Steve Cooper significantly noted as where he drove strategy for key part of the company’s official acquisition announcement: “We are artists including Norah Jones, committed to making this a great outcome for Parlophone’s artists Kylie and Coldplay. is the ideal executive to continue and its employees, who will find in WMG a similar spirit and culture Collen became SVP of EMI and build on this success. He that is dedicated to providing the most supportive and innovative Music UK & Ireland in 2005, played a pivotal role in driving the home for recording artists.” creating the Angel Music Group, global One Direction where he repositioned the EMI phenomenon and his all-round Classics business in the UK, knowledge of the international “We have seen palpable relief over the Warner signing artists such as Alfie Boe. market place is second to none. I deal, both from PLG staff and the indies. But few As MD of Chrysalis, Collen firmly believe Mark has the seem to be asking what Sony will do next” merged the label with EMI experience and tenacity to drive Records to form EMI: Chrysalis our international breakthrough If the scandal and intrigue around the deal wasn’t to be found in where in addition to signing strategy and deliver success for the instability of PLG staff contracts, perhaps the independents Starsailor and attracting artists the UK business worldwide. It is would provide it - railing against the acquisition like they did when such as Doves and Beth Orton, VP of international in 2001. with great pleasure I welcome Universal’s £1.2bn takeover of EMI Music was first announced? he helped guide the careers of Gatfield said: “Our key him to the role. Not this time: even Beggars co-founder Martin Mills, the Robbie Williams, Pink Floyd strategic initiative is to sign and “I also want to thank Dave staunchest recent critic of Universal, just seemed relieved that the and Iron Maiden. develop the best new artists and Shack for all he has contributed to joint bid for PLG by BMG/Sony had been scuppered by WMG’s In his new role, Collen will break them globally and it is the company over many years and spending power. (Time will tell if Warner’s fiscal generosity stops at lead Sony UK’s international essential that we have a proactive, wish him well for the future.” its intriguingly high cash - cash! - bid for PLG, or if there are also team. He will report directly to tenacious and ambitious Collen said: “It’s a privilege to pre-agreed treats coming to the independent sector.) chairman and CEO of Sony international team to spearhead be asked to lead the international Celebrating Sony’s loss more than WMG’s gain, IMPALA chief Music UK, Nick Gatfield. this challenge and deliver best- strategy for the next generation Helen Smith said of the deal: “We would expect to see a significant Dave Shack (pictured inset) in-class service to our artists. of Sony UK’s artists. re-balancing effect [of industry power] as a result of this. After all, started his career in music on “2012 saw incredible global “It is essential that we provide two’s company, three’s a crowd.” Kerrang! magazine in 1986 success for One Direction, Olly the very best international Interesting that few - either inside or outside PLG - are asking before working his way up the Murs and Paloma Faith and organisation to meet the what’s next for Sony.