EMI To Mom & Pops: Eat Cake Bitch
Life Is Good At EMI
Here’s a really good one for you. Last week EMI sales reps started making calls to many if not all of their small accounts, mostly independent mom & pop stores, to tell them that they would no longer sell them product!!! Were these accounts bad payers? Nope. Would they not stock catalog or new artists? Nope. Then why in God’s name, you may ask, would they simply cut loose paying customers? The answer given by sales reps — cost cutting.
So let me get this straight. EMI intends to save money by not selling their CD’s to independent retailers. Instead they want these retailers to go to one stops for their product. These retailers are the only ones who buy catalog anymore. You sure can’t find it at Walmart and Best Buy. These are small businesses who have been loyal customers of EMI for 20, 30, 40 or more years. Like in the movie High Fidelity, these guys know every catalog number ever released. Every disk ever cut out of the catalog. They live and die by making personal recommendations to their customers–turning them on to new music. These shops are where music lovers go to discover and buy music. Several I have spoken with are so upset that they vow never to buy any EMI catalog again–or any new artist releases either. Only the certifiable hit product that they know will sell. They will no longer take chances on new EMI artists.
So I guess it just isn’t worth it to EMI to take these orders over the phone anymore. Too labor intensive. And after all, they’re doing so well that they really don’t need the business. Small potatoes. Let ‘em eat cake.
INTERESTING UPDATE: In making this policy change, EMI took the unusual step of notifying these retailers by phone instead of the standard letter. Could it be that they didn’t want anything in black & white?
Also, don’t forget that by being forced to buy from a one stop, not only does a mom & pop retailer pay more for his product (cutting into the already slim margins and pricing pressure from the likes of WalMart, etc.), but the one stops don’t carry nearly the depth of catalog that these guys need in order to make a living. And is this really a good strategy for EMI to introduce their new artists? Another gripe they have is that now they won’t even get new and/or important releases (does EMI have important releases? Maybe the upcoming umpteenth release of remastered Beatles catalog) on Tuesdays, the new release day. It just makes it all the more difficult for them to compete and stay in business, even if it we were experiencing better economic times.
© 2009, Wayne Rosso. All rights reserved.
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Oh my god just when you think you have heard it all!
Quality bed time Reading Mr Rosso.
Amazing!
[...] Fail EMI continues to show the world why they completely suck at selling music. [...]
Profoundly uncool! Do they know what they are doing?
A formal letter was sent out to all accounts around 6 weeks ago.
You know that every distributor has done this, right?
They don’t need P2P to cut into their sales, their own marketing department is doing a fantastic job at reducing sales!
Not a very good decision on EMI’s part. You would think that they would embrace the mom & pop stores for even competing against the bigger chain stores.The next thing you know the RIAA will somehow turn this around and blame the whole thing on file sharing, because that will be more revenue they aren’t getting (like the record labels and the RIAA need even more money than they already have).
It is a sad day!
http://www.topufo.com
[...] This post was Twitted by drpants [...]
One-stops can’t fill the catalog titles? Where have you been…they’ve been doing this for 20+ years. This article seems to be trying to stir up a hornets nest where there isn’t one. Since when did mom&pops deal directly with the major distributors anyways?
Whatever… I haven’t bought music since 1989 and don’t plan to ever pay for RIAA-supported music again. I go to shows – I give the artist some bucks, they give me a CD… Or I search for free indie stuff on the web…
I can’t wait for EMI and the rest of the swine to go under so music can return to it’s original roots…
Source?
[...] another “great” move by a major label, according to Wayne Rosso, EMI has now in order to save money started to refuse many of their smaller accounts, mostly small [...]
[...] all artist will be doing it “DIY” as they should be. Read the full article right here. Tweet This Post Digg This Post Ping This Post Reddit This Post [...]
e.m.i. e.m.i. e.m.i.
unlimited edition
with an unlimited supply
that was the only reason
we all had to say goodbye
unlimited supply e.m.i.
there is no reason why e.m.i.
i tell you it was all a frame e.m.i.
they only did it ‘cos of fame e.m.i.
i do not need the pressure e.m.i.
i can’t stand those useless fools e.m.i.
ulimited supply e.m.i.
hallo e.m.i. goodbye a & m
[...] Punk Rock Feedmeister on Jul.13, 2009, under News According to a recent report from music industry veteran Wayne Rosso, EMI Group has been contacting small accounts, mostly [...]
It is a trend for major distributors to do this, but there’s no need to stop servicing the small shops! In this day and age, the small shops are gaining more and more popularity, as the only place to get the best new Indie CDs. Now, EMI is basically removing the brand name competition from their shelves, leaving more room for independent albums. It’s as if NIKE decided to pull their shoes from all small shoe stores. This would cut sales for these small stores drastically, but allow the custom shoe makers and local talent to shine!
Go ahead, open up more rack space for my fellow indies. We need it. Our take-over can’t happen without the fall and demise of the majors.
Eat our shorts EMI – our dirty, stinky shorts..
EMI from now on i shall pirate everything in your catalog i like.
“And after all, they’re doing so well that they really don’t need the business.”
I hope you’re being facetious here, as EMI is actually in about 2.5 billion pounds deep.
http://waxandwires.com/2009/07/13/emi-asks-for-500m-bail-out/
I can see why they need to cut costs, but I know that refusing sales to anyone is the way to go.
This is sort of a false story. EMI closed a few accounts that were doing minimal orders. No stores in Seattle, or in our coalition for that matter, were closed. The ones that were closed got 3 months written notice. I’m not sure where Wayne is getting his info but he should fact check it. (BTW: This is the first Beatles re-issue since they were transfered to CD, minus Anniversary editions, and the first time they have been properly mastered for CD.) Just trying to get the facts straight.
Sonic Boom – A pop & pop store.
OK, let’s get this strait, EMI is mainly a publishing company, they do other thing’s but publishing is there big thing. They sell right’s (if there even are any more) for the use of music produced by labels and artist. I remember back in the day (pre 1980) when you went to a record store to buy your music or, you joined a record club. The only way you could get independent label stuff was to go to a small independent shop or go to the local concert of that independent artist.
The old day’s or the ROOT’s of independent was only the local and close area artist, you could not go to one of these small independent stores and get major releases (and vice-verse) and, I believe that was the way that they liked it! They (the independent) wanted nothing to do with the majors at all! The major’s where full of corporate giant’s who would not let you do to much along the lines of you’re own thing, and the independent’s wanted to do there own thing! That’s just how it was!
The major’s changed there way’s and started letting the artists do more and more of there own thing and now that it’s easy to get music (independent’s) free or for next to nothing. It’s not a good business to be in, selling the right’s to records that are not selling as they where 30 or more years ago. Or, are not making any money off of right’s that are not going to be paid in the first place! So why even bother selling if you can’t find any one who will even buy them?
This is just a sign that the business of supplying music to the public is changing, the day’s of doing thing’s the old way are numbered and, it may not get much better for the right’s of the one’s holding the copyright’s to start with.
[...] Apparently, EMI has had enough of independent record stores. Via Digg come reports that EMI has been calling various smaller independent record stores and telling them that it won’t sell them product directly any more. Instead, they’ll [...]
[...] Apparently, EMI has had enough of independent record stores. Via Digg come reports that EMI has been calling various smaller independent record stores and telling them that it won’t sell them product directly any more. Instead, they’ll [...]
Indie stores are not where you find new indie music. P2P is. Youtube is. That’s what technology is for. Glad EMI is digging its grave, anyway, it’s about time.
[...] EMI has had enough of independent record stores. Via Digg come reports that EMI has been calling various smaller independent record stores and telling them that it won’t sell them product directly any more. Instead, they’ll [...]
[...] certainly reeling from declining physical album sales like the other Big 4 record labels, is now apparently telling independent album retailers that it will no longer sell them [...]
[...] Wenn man also Fall Eins und Fall Zwei zusammen betrachtet, stellt sich mir die Frage: Wie kommt es, dass die EMI und ihre drei hässlichen Schwestern nicht schon längst pleite sind, und zwar pleite wie in “fubar”? Nur weil dröge Politiker mit auf deren gigantische Koksparties eingeladen werden? Nein. Das kann ich nicht glauben. Recht und Gesetz sind doch schliesslich wichtiger als das Anstarren von Schlagersternchen-Dekolletes. Ja? Nein? ( via guardian, waynerosso) [...]
[...] is all anecdotal, but according to music industry veteran Wayne Rosso (via punknews.org…) EMI Group has been contacting some of their smaller accounts (aka independent [...]
[...] article about one of the larger record labels mistreating the mom and pops out there. Check it out here. Source: Waynes [...]
[...] this topic.Apparently, EMI has had enough of independent record stores. Via Digg come reports that EMI has been calling various smaller independent record stores and telling them that it won’t sell them product directly any more. Instead, they’ll [...]
Wayne’s post is inaccurate. Every year, all the labels take a look at their accounts and make changes. I know people at EMI and know EMI sent letters (back in February) to a handful of small physical retailers — we’re talking a fraction of a percent of their physical accounts — and informed them they’d need to go through one-stops for product. They gave them months and months of notice and a list of options for one stops. They didn’t just call them last minute as Wayne claims.
false information is being spread by wayne.
hmmm – where is the proof?
I spoke with a couple of retailers who I have know personally for 20 years. They told me the entire story as reported. They said that they were traditionally informed in writing by EMI when there were any important policy changes and were somewhat surprised that this was done by phone. They never received letters. I was told that this happened not last Feb. but roughly 8 weeks ago. One of these guys had been a direct customer of EMI for over twenty years. He also told me that over 100 retailers had been cut. They did give them a list of one stops to go to, but they can’t get the depth of stock that they need and of course it cuts into already slim margins or get major releases on Tuesdays. Unless these retailers are lying to me or not telling me the whole story, this is exactly what I was told.
EMI works with lots of independent retailers. They’re still pressing vinyl out of the Capitol Studios for indie retail and have a huge vinyl re-issue program. But more to the point, they — like all the majors — have expanded the number of physical accounts they work with. Isn’t that the way the market’s going?
I know people at EMI and EMI sent letters (back in February) to a handful of small physical retailers — we’re talking a fraction of a percent of their physical accounts — and informed them they’d need to go through one-stops for product. They gave them months and months of notice and a list of options for one stops.
[...] já avisaram que nunca mais vão vender nada da EMI. Outra coisa interessante, notada pelo Waynes’s World (de onde surgiu a notícia), é que as grandes redes não disponibilizam obras de catálogo, apenas [...]
[...] EMI To Mom & Pops: Eat Cake Bitch So let me get this straight. EMI intends to save money by not selling their CD’s to independent retailers. Instead they want these retailers to go to one stops for their product. [...]
Goodbye, EMI.
How does this affect the many independent labels (eg DFA) that have distribution deals with EMI?
[...] agora quem vê o seu negócio bastante ameaçado são as pequenas lojas de bairro. Segundo conta Wayne Rosso, antigo presidente da empresa responsável pela aplicação de P2P Grokster, a EMI tem vindo a [...]
[...] story originally reported by Wayne Rosso on his blog, and which made its way onto this site in a post that I wrote via a third story on Tech [...]
They have Best Buys and Walmarts in the UK?
No. Their equivalent is Tesco and Woolworth’s.
There’s one or two others as well.
the only record chain left in the UK is HMV. Woolworth’s went under in December, along with “Zavvi”, the former Virgin megastore chain. A number of those were somehow purchased by HMV (not sure where they found the money!).
Tesco doesn’t really count as a “record chain”, although you may be able to find the odd Robbie Williams disc in there…
Really notable is the sheer number of defenders of EMI on your comments page. Many of which are repeats and clones. To me EMI’s actions are indefensible. I run a record shop that has made regular purchases from EMI for almost 27 years, and we have always paid our bills on time. Some (like Stark) have stated (without
any but anonymous sources) that this cutoff has only affected “a handful” of accounts who bought less than
$1000/ month from them. Well, even in these dark times, we have consistently purchased between $1,500 and $3,000/ month from EMI. Yet, we were cut off with an impersonal form letter dated mid-February but not actually received until March 15. Who has nurtured the “unknown” acts on EMI (and other labels) more than “little” indie retailers like us? Wal-Mart & Best Buy? Please… they only promote acts that they are paid under the table to promote. But why is anyone surprised, after all, that companies like EMI still have their heads up their asses? Pardon me while I smile when I watch that company shoot themselves in both feet while they run into the fantasy future of “paid downloads”… so I can henceforth focus on the indie labels who have a clue.
[...] går rykten, för jag hittar ingen bekräftelse, om att EMI tänker sluta sälja CDs till små skivaffärer [...]
junikkatil
[...] cost-cutting was apparently insufficient as EMI is no longer doing business with mom and pop record stores. They actually told these stores to send someone to Best Buy to get cds, bring them back to the [...]
[...] bird does not lie. EMI, the dicks who refused to bring you Dark Night of the Soul, are now refusing to sell their stuff to independent retailers in a move that can only be charitably described as one of the biggest dick moves ever. What the [...]
[...] INDUSTRIE: Eat Cake, bitch! – EMI Quits Selling CDs to Indie Record Stores Da ist das Majorlabel schon wieder einen Schritt weiter als die Musiker: Statt sich wie die Künstler Gedanken über den zeitgemäßen Vertrieb von Musik zu machen, stellt man ihn bei der EMI einfach ein. Scheinbar ganz nach dem Motto: Wenn das CD-Format der MP3 geschuldet sowieso ausstirbt, warum dann nicht auch industriebefeuert? Die amerikanische Dependance des Majors EMI verweist ihre unabhängigen Kunden (sog. ›Plattenläden‹) daher nun an WalMart, Best Buy und andere Großketten, statt sie selbst mit CDs zu beliefern. Besonders perfide: CDs dürften durch solch eine Taktik nicht gerade günstiger werden, da auf die Großeinkaufspreise von WalMart selbstverständlich noch deren eigene Kosten und Gewinn-Margen aufgeschlagen werden. Was wohl der Kunde dazu sagt, wenn der Plattenhändler seines Vertrauens ein Beatles-CD-Album im Jahr 2009 für 20 Dollar anbietet? Genauer: anbieten muss. [...]
[...] a comment » As heard on CNET’s Buzz Out Loud, and traced back to the source, EMI are apparently backing out of deals with smaller retailers in the US, preferring to only sell [...]