For the exclusive use of C. Portillo Cardenas, 2015

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Rev. Feb. 13, 2009

EMI GROUP PLC

In this Internet age, the consumer is using music content more than ever before— whether that’s playlisting, podcasting, personalizing, sharing, downloading or just simply enjoying it. The digital revolution has caused a complete change to the culture, operations, and attitude of music companies everywhere. It hasn’t been easy, and we must certainly continue to fight piracy in all its forms. But there can be no doubt that with even greater commitment to innovation and a true focus on the consumer, digital distribution is becoming the best thing that ever happened to the music business and the music fan.
—Eric Nicoli, CEO, EMI Group1
In early …show more content…

In addition, both EMI’s interim and final dividends were paid out to shareholders in the following fiscal year. In November 2006, EMI’s board committed to paying the interim dividend of 2p per share following its 2007 fiscal midyear results with actual payment to shareholders expected in April 2007. Both the 2p interim dividend and the recommended final dividend would be reflected in the 2008 financial statements.
3
William B. Drewry, Jolanta Masojada, Nick Bertolotti, and Giasone Salati, “Global Music Industry, ‘Just the
Two of Us,’” Credit Suisse Equity Research, June 16, 2006. Sony BMG Music Entertainment was a joint venture owned by Sony Corporation and Bertelsmann. Universal Music was owned by Vivendi.

This document is authorized for use only by Carlo Adrian Portillo Cardenas in Corporate Finance - LMFI1 - Tower Bridge taught by Khaled Soufani at Hult International Business School, 2015

For the exclusive use of C. Portillo Cardenas, 2015

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music), performance royalties (performances of a song on TV, radio, at a live concert, or in other public venues such as bars), and synchronization royalties (use of a song in audiovisual works such as advertisements or computer games). EMI included a fourth category of royalties labeled
“other,” which included sales of sheet music and, increasingly, mobile ring tones and ring backs.
Similar to the recorded-music division, the music-publishing division identified