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MW Cover - rhianna - 16.11.12_cover template 10/11/2012 12:43 Page 1 16.11.12 £5.15 Project1_Layout 1 09/11/2012 17:23 Page 1 CoverV2_cover template 13/11/2012 17:32 Page 1 46 9776669776136 THE BUSINESS OF MUSIC www.musicweek.com 16.11.12 £5.15 BIG INTERVIEW ANALYSIS MEDIA 13 20 24 4AD’s Simon Halliday on the Radio 1 won’t play One of commercial radio’s most iconic indie label’s recent Robbie Williams – successful programmers, Andy Roberts, success and its future has it got a case? on the changing shape of broadcast ELEVEN TAKEOVERS HAVE COST MAJORS £3.8BN IN TWO DECADES – BUT HAVE THEY BEEN WORTH IT? To buy or not to buy LABELS concentrates on deals for closed or amalgamated with Similar fates awaited the one of the US market’s most I BY PAUL WILLIAMS individual labels rather than one another record company. artists and operations of famed successful labels with a roster major group completely buying Around half the total outlay label names such as A&M, including Eminem and Lady s a reported 90-plus out a rival major, such as covered Bertelsmann buying a Chrysalis, Geffen and London Gaga, and Island Records, parties eye up a wealth of Universal’s $1.9bn (£1.2bn) 75% stake in Zomba in 2002, Records (although several have consistently the most successful AEMI assets, a Music Week A&R source for UK repertoire. study today highlights the Island led the Official UK potential business perils of singles and artist albums charts buying iconic labels. last Sunday with former EMI Across the last two decades signing Robbie Williams. past and current major record Several of the famous labels company owners have spent analysed in our piece have either billions of dollars snapping up changed hands recently because famous rivals to instantly expand of the EMI buy-out or are about their operations. However, the to again because Universal must results have been mixed: some divest them to meet EC labels have successfully takeover conditions. prospered under their new These include Chrysalis, now owners, while a number of part of the Parlophone Label others were immediately or Group housing properties ultimately plundered for their Universal must sell. biggest artists and then either Among reportedly more than merged with another record 90 parties who have enquired company or closed altogether. about the assets are understood In our analysis we examine to be rival majors Sony and 11 deals from both sides of the takeover of EMI. having already previously subsequently been revived), Warner, BMG Rights and a Atlantic from the 1990s The 11 takeovers collectively acquired 25% of the company. In although other labels have combination of Simon Fuller onwards in which celebrated cost the majors around $6bn less than a decade Zomba label prospered after being taken over. and Chris Blackwell. record companies were bought (£3.8bn) but more than half the Jive had been shut and its artists These include two Universal I Read Music Week’s Business by major rivals. The study labels purchased have since been transferred to RCA. companies: Interscope, which is Analysis: pages 16-18 New acting BBC radio chief named to replace Davie The BBC has appointed Those in the running to classical and popular music into Jimmy Savile’s alleged Graham Ellis as the new replace Davie on a permanent across radio and television. history of sexual abuse. acting director of its Audio and basis are thought to include George Entwistle stood Then, on November 2, Music division. BBC Radio 2 and 6Music down on Saturday after just 54 interviewee Stephen Messham Ellis will replace Tim Davie controller Bob Shennan. days as DG, following two suggested on the programme (pictured left) on an interim Ellis is the former controller major recent scandals that that a leading Tory politician basis. Davie has taken up of production for the Beeb’s have engulfed BBC Two’s from Margaret Thatcher’s the post of acting director A&M department, which is Newsnight programme. government had repeatedly general following the responsible for all the BBC’s First, it emerged last month sexually abused him as a resignation of George Entwistle national radio networks and for that Newsnight had scrapped child in Wales – but later over the weekend. the production of most of the plans to run an investigation retracted the claim. 02-03 NEWSV4_News and Playlists 13/11/2012 18:11 Page 2 2 Music Week 16.11.12 www.musicweek.com NEWS EDITORIAL “WE ARE THE ENGINE ROOM OF THE MUSIC INDUSTRY” School’s out - Labels see bright and that’s ultimately where A&R begins future for A&R LABELS by trying to acquire more rights,” “YOUNG PEOPLE DO BETTER in English and maths subjects if I BY TOM PAKINKIS he admitted. “But it’s still not a they study the arts. They are more easily employable, more likely really significant number yet. to vote, to volunteer and to get a degree. You might add that they he significance of record “As the next five or 10 years will be more likely to get into the charts too.” companies was bolstered develop, it’ll probably become a It was all-too-easy to fear an outdated, leftist Missus Fatcher T this week, as a new IFPI significant number, but the sacred diatribe from Billy Bragg’s John Peel lecture at the Radio report revealed an increase in cow in running a record company Academy in Salford this week. And while the crusading revenues reinvested into A&R is investment.” singer/songwriter did show flashes of political ire in his half-hour from 2008 to 2011. Hole went on to point out sermon, the core message from the oft-polarising Mr. Which Side Record companies invested that emerging markets abroad Are You On? was altogether more universal. $4.5bn (approx £2.8bn) in A&R presented reasons for optimism, Bragg, like ISM and the Musicians’ Union before him, offered a and marketing during 2011, with new investment stark warning over Michael Gove’s plans to scrap GCSEs in despite the global economic some of Faith’s audience found opportunities and new markets favour of an English Baccalaureate. Yet his argument wasn’t downturn, representing 26% of the singer a bit too frivolous and coming as part of the package. emotional, partisan or even economic; it was pragmatic, practical all industry revenues. “burlesque” to take seriously, “It’s quite an exciting time at and all-encompassing. RCA MD Colin Barlow something it was useful for her to the moment in the global “Under the English Baccalaureate, with its reliance on a single (pictured) and Universal COO understand in order to develop. recorded music business because end-of-course exam, the child with the creative imagination will Max Hole commented on the “[Producer] Nellee Hooper the explosion of mobile devices always lose out to the child with the ability to recall knowledge report shortly before its release at was then able to take Paloma’s means that, for the first time, we learned by rote,” he pointed out. “And it’s not just the creatively an IFPI briefing, with Hole eccentric and eclectic musical taste can communicate with literally talented kids who will suffer.” reaffirming the importance of and pull it together to make a millions of consumers in parts of A&R in an age of 360 deals and record that will go on to sell over the world where we were never “Billy Bragg made a vital point: the truly magical pointing to growth abroad. a million copies for us,” he said. able to go before,” he said. power of musical endeavour has little to do with “Our investment in artists During the IFPI briefing, it “We’re suddenly able to see, across all genres and all languages was asked if such artist albeit small, revenues from excellence and everything to do with inclusion” is crucial,” he said. “We are truly investment would have been Vietnam or Cambodia or Peru or the engine room of the entire possible without labels’ recent even Africa. He makes a vital point, occasionally forgotten by those who music industry because of the assertiveness in rights acquisition “The focus of the recorded have broken into this industry’s golden circle: the truly magical new music that we produce. – with specific mention given to music business for the last 40 power of musical endeavour has little to do with excellence and Without it, agents wouldn’t have 360 deals. Max Hole said that, years has really been on 10 everything to do with inclusion. Accomplishment is rarely a thrill anyone to book, promoters even without those new main markets but I think, in the to witness alone - only when steeped in a recognisable flash of wouldn’t have anyone to strategies, A&R backing would next 30 years, we’re going to see primal spirit, joy or fury can it usually come alive. promote, merchandisers wouldn’t still have been substantial. “A lot that focus alter and we’ll move Interesting to see Bragg’s comments delivered as the record have any merchandise to sell. We is said about the 360 concept, but into the emerging markets. industry finally received the killer stat it’s been questing for in are 100% committed to it.” the amount of revenue on 360 That’s very exciting for us relation to Governmental debate: according to the IFPI’s Investing Colin Barlow drew on his deals is really tiny,” he said. working in the industry. In Music Report, the global trade body’s members invested 16% own A&R experience of “The purpose of a record “So, against the backdrop of of their global revenues into A&R activity in 2011.