Published Jan 15, 2008Amidst all of its troubles, EMI is now facing a boycott not from record buyers but from record makers. So far Coldplay, Robbie Williams, and now the Verve have all threatened to withhold new recordings from their label until they receive some assurance regarding EMI's financial stability.
NME.com reports that the Verve were scheduled to deliver their long-awaited fourth album to Virgin/EMI in June, but news of the band's hesitancy puts any future release date with the label into question. The Verve's manager, Jazz Summers, is to meet with the new EMI boss Guy Hands in London today (January 15) to discuss some business, including the reduction in advances paid to artists.
EMI has already suffered dearly from big names walking away, with two of its biggest artists in history - Radiohead and Sir Paul McCartney - opting for artist-friendlier record deals with other labels.
Further troubles come with the recent announcement by EMI's new private equity owners Terra Firma that the label will cut 2000 jobs from its recorded music division (approximately one-third of its staff), which will reportedly save the label $392.2 million (U.S.), and allow them to become the "world's most innovative, artist-friendly and consumer-focused music company." Or so they think.
It has also been revealed by sources that 85 percent of its roster are loss-making and that they pay roughly $50 million each year to scrap unsold CDs.