For almost 80 years it’s been as British as fish and chips, grey skies and a nice cup of tea – but now iconic record label EMI is in foreign hands, writes The Mirror in an informative article today.
The homegrown musical empire that launched Cliff Richard, Coldplay, The Beatles, Kate Bush, Pink Floyd, Queen and Robbie Williams is now owned by an American bank. Citigroup, who financed Terra Firma’s £4billion acquisition of EMI in 2007, have seized control – and written off £2.2billion of debts.
It seems not even putting The Beatles’ enviable back catalogue on iTunes could resuscitate EMI’s ailing finances with some its biggest stars beginning to turn against it. So where did it all go wrong?
EMI was formed in June 1931 when the Gramophone Company joined forces with its rival Columbia Graphophone Company. It opened a studio at Abbey Road, which later became famous the world over. After the war, EMI set about developing British talent to rival established American stars and emerging rock ’n’ rollers such as Elvis Presley.
In 1955, it bought American Capitol Records for $8.5million – gaining Frank Sinatra, Dean Martin and Nat King Cole. Soon after, it introduced a roster of rising British artists including Alma Cogan, Russ Conway and Cliff Richard. Cliff recalls discussing his first record with producer Norrie Paramor. He says: “We had this song Move It, which we sang to him in his office.
“He quite liked it and said we could do it as the B-side.” Move It in 1958 became the first of Cliff’s 130-plus UK chart hits. By 1960, EMI boasted 40% of the UK’s pop record sales – but the best was yet to come. The Beatles signed to EMI in 1962 in a deal which saw them earn one old penny per double-sided single, split between the Fab Four and manager Brian Epstein.
Even as The Beatles began to dominate pop music, EMI boss LG Wood still had his reservations. “The advance pressing order placed for She Loves You was 350,000, he recalled. “It was an incredible number and I cut it back to just 250,000 – and in the end we sold over a million!”
Following the huge success of The Beatles, EMI became seen as the launch pad for any self-respecting new act. Sixties stars such as Gerry & The Pacemakers, Cilla Black and the Animals were followed by Pink Floyd, Marc Bolan, Queen and Kate Bush in the 70s. But there were a few hiccups. In the late-70s the company sacked the Sex Pistols for bad behaviour and the punk rockers retorted by immortalising the label in their song EMI. Even as EMI was signing rock bad boys the Rolling Stones, Mick Jagger warned bosses: “If I go on TV and say ‘f***’ you’re not firing me.”
In an effort to stay afloat amid poor returns, EMI was sold for £165million in 1979 to Thorn. Later it expanded buying United Artists, Chrysalis and Virgin Music. During the 90s, The Spice Girls topped up the company’s coffers. But two failed mergers sent profits tumbling again.
It was also the decade that poor economic conditions in South East Asia and Latin America hit sales hard. Meanwhile, the entire industry was being decimated by illegal downloads. Then Terra Firma bought in with new owner Guy Hands announcing: “We are just hoping EMI is as bad as we think it is” – and suggesting artists worked harder for their money.
Radiohead were the first to leave, swiftly followed by Paul McCartney. He ended 45 years there claiming EMI’s artists had become part of the furniture: “I’d be a couch, Coldplay are an armchair. And Robbie Williams, I dread to think what he was. But the most important thing was I felt (the people at EMI) had become boring.”
The Stones and Queen also jumped ship while newer acts were public in their criticism. Lily Allen said: “I hate Terra Firma. They’re w****** and don’t know what they’re doing!”
Now EMI is in the hands of Citigroup. And if it is sold on, the once greatest of our music companies might cease to exist altogether.
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