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Selling physical records is “folly”, says EMI
The decline of the physical music business means focusing on selling records is “folly” according to EMI’s strategy SVP, Jim Brady. Speaking at the Music TechPitch 4.5 event in London, Brady says labels must find a “new way” to reach consumers beyond “shiny little discs in plastic boxes”.
“When the record business has halved as it has done in the last 10 years, it’s folly to think that continuing to sell records is good for anyone,” he says. “Certainly not for creators of music, certainly not for a record company that purports to be serving the creators of music.”
Acknowledging the industry’s so-far obstructive approach towards new digital business models, Brady admitted that the label had not “covered itself in glory” in terms of co-operating, but vows that this will change. “We haven’t covered ourselves in glory on the co-operation front in the past. I’d like to announce, at least as far as EMI is concerned, that that is changing,” he says.
Brady’s comments follow the decision of an EMI label member, Coldplay, to withdraw its new album from Swedish streaming service Spotify, following in the footsteps of label mates Pink Floyd and Arcade Fire, both of whose work is absent from streaming services at the artists’ behest. In spite of these blips, however, Brady says EMI “needs help” reaching beyond its traditional consumer base of older, wealthier record collectors who continue to place importance on their physical music collections. Instead, EMI is looking to partner with newer digital services in a bid to reach the latest generation of music listeners. Dubbed 'Homo Spotifyicus' by Brady, these are listeners who are accustomed to accessing music across a number of different media services, such as online radio, YouTube, Spotify or in online games.
“For Homo Spotifyicus, music is just around them all the time,” he says. “True digital fans do not have a very strong ownership habit. What matters is instant gratification – being able to access that song straightaway wherever they are.”
The comments come as EMI is in the process of being sold off, with rival label Universal snapping up its recorded music division for GBP2.5bn (USD3.91bn). Asked about the sale, Brady says music companies are “desperate” to find ways to understand how attitudes towards and consumption of music has changed.
““I happen to think from where I sit that EMI has done a good job with that,” he says. “I hope that this is one reason why what has happened in the last three weeks has happened.”
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