EMI forgets the other half of economics

Guy Hands is laying off big time and talks the talk but so far all he is talking about is increasing supply.

Taking some key facts from FT article;

* 200 of the 14,000 artists EMI deals with each year account for more than half its sales
* Record companies lose money on 85 per cent of new artists, even before overheads
* More than 30 per cent of EMI’s artists have not produced an album. Many never will

What does this tell you about talent and creatively driven media? It’s impossible to predict success.

So his idea, increase A&R! Find more talent. The problem is, they don’t have a shortage of talent, i.e., supply.

EMI (and the rest), have a shortage of demand.


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One Response to “EMI forgets the other half of economics”

  1. Topspin on the ball « Gordon Mattey’s Blog Says:

    […] I spoke about record labels not suffering from a shortage of talent.  Record labels suffer from a shortage of demand.  Topspin is all about providing a platform to enable artists to create […]

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