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.