[A2k] EMI: DRM stays

[Michelle Childs]

http://www.theregister.co.uk/2007/02/26/emi_drm_talks_breakup/
EMI: DRM stays
Talks break up
By Andrew Orlowski
Published Monday 26th February 2007 15:07 GMT

. EMI has broken off talks with digital music download services about
providing a DRM-free repertoire.

EMI was always tipped as the most likely of the "Big Four" to break ranks
with its peers and supply music unencumbered by DRM. It's the smallest of
the four major labels, the only one that isn't part of a major
entertainment conglomerate, it's seen two mergers with larger partners
scuppered in recent years - and it's in an ominous financial position.

The group axed chairman and CEO Alain Levy in January and announced it
needs to make =A3110m of cuts this year. EMI turned over =A3867m in the six
months ending October, with a pre-tax profit of =A318.6m.

The record business has seen physical sales fall by 10 to 15 per cent but
digital sales haven't made up the gap. But digital has been a boon for the
burgeoning independent sector, which has few qualms about selling DRM-free
music to services such as eMusic, Yahoo!, Music and Bleep.

According to reports, EMI had asked the online stores for large upfront
payments to guarantee their revenue.

EMI last week confirmed that it had received an approach from Warner
Group, but no formal bid had yet been made. You can read that statement on
the endearingly 1995-era EMI Group website, here
http://www.emigroup.com/Press/2007/press10.htm


--
Michelle Childs -Head of European Affairs
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