Cover-18.01_cover template 14/01/13 12:57 Page 1 03 9 776669 776136 THE BUSINESS OF MUSIC www.musicweek.com 18.01.13 £5.15 Congratulations Katie, 10 Years together, 11 million albums sold. www.katiemelua.com www.dramatico.com Project1_Layout 1 14/01/2013 13:18 Page 1 Katie, it’s exactly ten years since you shot to number one during Midem 2002 Thanks for being such a star, friend and most of all, one of the greatest artists I have ever worked with. From, Mike, Julianne and everyone at Dramatico. Music Week Katie Inside Front04 indd 1 20/12/2012 13:02 01 Cover_v5_cover template 15/01/13 18:30 Page 1 3 0 6 3 1 6 7 7 9 6 6 6 7 7 9 THE BUSINESS OF MUSIC www.musicweek.com 18.01.13 £5.15 BIG INTERVIEW ANALYSIS FEATURE 12 14 19 The British superstar on her new An in-depth look at the US record With our handy guide album, and her relationships market in 2012 - featuring a to entering the Music with Sony and brother Rollo historic performance by Brits Week Awards 2013 HMV: Industry holds its breath CHAIN CLAIMS THIRD OF PHYSICAL MUSIC SALES l LABELS PRAY FOR SALE OR RESTRUCTURE RETAIL CEO and chairman David and JB Hi-Fi in Australia prove. n BY TIM INGHAM Joseph. “But we’re not mourning “Retail worldwide is clearly it and we remain optimistic that going through an enormous MV’s collapse into it has a future. HMV in Canada shake out, but there are many administration has was bought by Hilco in 2011 [for success stories out there. We look H sparked fears that other £2m] and now it’s trading well.” forward to being part of making music businesses will be pulled When pressed on what would sure that music is one of them.” into the abyss - triggering strong happen should HMV disappear, Rough Trade Shops’ co-owner messages of support and Joseph added: “We are wholly Stephen Godfroy said: “Clearly, we commitment to physical product committed to physical product hope to see a rejuvenated, smaller from record industry leaders. and distribution.” HMV return with fresh vigour According to sources, the Joseph said reports suggesting under new ownership, as the UK 92-year-old chain accounts for that UMG’s £1.2bn acquisition demand for relevant offline music just under a third of all annual of EMI had left it liable for more retail is greater than ever. UK physical music revenues. than £100m of HMV rental rates “In the meantime, we hope Its collapse could spell bad were “outright fiction, nonsense”. the supporting industry news for the future of small Sony Music UK CEO and Schröter told Music Week : “With PRS for Music CEO Robert infrastructure that has served labels reliant on non-digital sales, chairman Nick Gatfield or without HMV, physical sales Ashcroft added: “HMV entering HMV for so long can weather whilst others are worried over the commented: “I'm saddened by the will be a substantial part of our administration is a blow, but we this storm without casualty. financial feasibility of a CD HMV news but not surprised. I business in the near future.” believe there is a place for a “Overall, we hope this painful distribution network without sincerely hope that under Mike Chadwick, MD of refreshed HMV on the High but ultimately necessary HMV’s 240 UK stores. administration they can restructure Essential Music & Marketing Street at the end of this process.” recalibration of the industry will HMV went bust on Monday and find a way forward. asked: “Without HMV, will we Beggars Group co-founder result in a brighter longer-term night ( January 14 ), owing around “Physical retail is still a major see a big switch to digital or will Martin Mills commented: “We’d future for all.” £175m to its banks. Music labels part of our business and there’s no more consumers decide they hope that out of this process will And Warner Music UK CEO remain unequivocal in their doubt that we would be worse off don’t need to buy music?” come a leaner and stronger music Christian Tattersfield responded: backing of the company, and without HMV. There would be Cooking Vinyl founder retailer. Music does still sell, and “HMV has always been a beacon hopeful that administrator some transfer of sales to other Martin Goldschmidt said: “I am sell well, not just in digital but for music lovers. We hope that Deloitte will find a suitable buyer. retailers but a significant part of sure that HMV will come back also in physical form, and there the administrators can work “It’s obviously sad because we our business would disappear.” leaner. This is not the end of the clearly is a future in selling it, as towards securing a viable future love HMV,” said Universal Music [PIAS] Group MD Edwin CD and the record store.” stores as varied as Rough Trade for the company.” Are you going places? Cockle to Music Week will next month with your/their name, age, job limited number of entries from reveal its list of the UK industry’s title and achievements. Only a each company can be considered. Ubnioversal sMu siVc hais rapgpoinnted brightest young execs. “The future of the music Island co-president Ted Cockle as Our 30 Under 30 feature - in industry – one of the leading the new president of Virgin association with entertainment innovative businesses in the world Records UK. recruitment specialist The Music today – is in the hands of The major confirmed to Music Market - will round up the best tomorrow’s key execs,” said Helen Week that Darcus Beese will now young professionals across all Ward, MD of The Music Market become sole president of Island. sectors. To nominate yourself or (ArtsandMedia.org ). “We're Popular exec Cockle joined a colleague for inclusion, email 30 proud to help 30 of them enjoy Island in 2005 after ten successful years at Sony Music. [email protected] UNDER THIRTY their moment in the spotlight.” In association with 02-03 NEWS_v5_News and Playlists 15/01/13 18:25 Page 2 2 Music Week 18.01.13 www.musicweek.com NEW S EDITORIAL ADELE MANAGER WILL REPRESENT PRODUCER EX-US HMV on life Dickins’ September support, but it’s not all over yet signs Rick Rubin MANAGEMENT I’M TOLD NOBODY AT THE HEAD OFFICE of HMV this week is n BY PAUL WILLIAMS counting any chickens. (Although judging by the desperate expansion of its product ranges in recent years, it wouldn’t be dele’s manager Jonathan beyond fiction for it to start selling frozen poultry.) Dickins has taken on Outside the company, the mass media has predictably already management of written off HMV’s chances of survival. Time for newspaper A acclaimed record producer Rick business editors to wheel out the hackneyed ‘Thank you for the Rubin for outside the States, music’ eulogies and move on. No need to question the role played Music Week can reveal. by their own ferocious desire for the depressing full stop on this In the role, Dickins will be Great British business’s near-Century-long history. tasked with helping Rubin find And yet there are reasons for those at HMV - and therefore, the appropriate new suppliers embedded in the very fabric of its business - to cling on projects to produce to some optimism. away from his US Okay, so even the greenest of economics students could tell you base with a particular that a persistent net debt of £170-odd million is unsustainable. emphasis on working Rihanna can do wonders, but she can’t fix that. with UK artists. Meanwhile, HMV’s recent history of chronic underperformance Dickins’ link-up plus that scourge of the High Street, gigantic rents and rates, with Rubin follows doesn’t paint a pretty picture. (Indeed, outgoing CEO Simon Fox’s the Def Jam Records prediction last year that the business would turn a £10m profit co-founder playing a in 2012-2013 and simultaneously halve its debt looks nothing leading part in Adele’s Dickins are people I have in mind.” short of cruelly comic in hindsight) multi-million-selling noted for Rubin is the most significant album 21, producing Rubin, whose new name added to Dickins’ “Forget the ugly losses for a second: HMV posted a number of the countless company September a still-mighty £277.6m in sales in the ‘disasterous’ tracks, including Don’t You successful productions have Management since the twelve months to the end of October 2012” Remember and One And Only. included albums by Beastie Boys, phenomenal success of Adele’s At the time of the recording Johnny Cash, Neil Diamond and second album, which at the end and release of 21 Rubin was co- Red Hot Chili Peppers, this of last year surpassed 25 million So... why would anyone want to buy HMV? chairman of Columbia Records, move was about him finding the sales worldwide. For starters, there’s the brand strength. Its garish, anti-Apple- which put out Adele’s two XL right projects to work on. Despite this incredible turn of pink makeover hasn’t done it any favours, but the canine-meets- albums in the States. Rubin left “It’s about quality, not events, the artist manager is gramophone heritage carried by HMV makes it a true British great; Columbia in 2011 and last quantity,” he said. “He doesn’t adopting a cautious approach in one which surely could evoke long-dormant national pride and August took his American need the work, but definitely he terms of how to take his business historical titillation amongst a burgeoning consumer based Recordings label to Universal’s wanted someone to help him forward post-21.