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Troubled EMI loses Rolling Stones to Universal
Struggling major label EMI is to lose the Rolling Stones to its rival Universal, in the latest blow to hit the firm since it announced its corporate overhaul. The band, whose five-year deal, worth an estimated GBP14m (USD27.6m), expires in May have failed to re-sign with EMI and will release their forthcoming album 'Shine a Light' under a one-album agreement with Universal. The move comes after this week's threatened artist 'revolt', which saw Robbie Williams declare he would hold back his new album in protest at CEO Guy Hand's reforms, with Coldplay and the Verve rumoured to do likewise. It also comes a day after EMI's head of digital, Barney Wragg left the firm.
EMI confirmed this week that it was going to axe between 1,500 and 2,000 jobs worldwide - up to a third of its workforce - in a bid to save GBP200m (USD391m) a year. Amongst other reforms, Hands says the label will "clear out" its artist stable and it may assign corporate sponsors to underperforming acts. The sponsorship would work in a similar way to how it does with football teams, Hands told the Financial Times, using artists as a direct advertising tool.
Earlier this year, Radiohead walked away from the label after seeing out their contract. They subsequently released their latest album themselves through their website, before signing a deal with independent label XL. Sir Paul McCartney also, left the label earlier this year.
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