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THE BUSINESS OF MUSIC
www.musicweek.com
NEWS 03
17
Ministry Of Sound celebrates a landmark anniversary with some big ambitions
A special five-page interview with comeback king Robbie Williams
14.09.12 £5.15 GATFIELD PREDICTS ‘ENORMOUS’ POTENTIAL FOR INDUSTRY FOLLOWING NEW 50% H1 MILESTONE
Sony’s digital revolution in full swing TALENT
PRODUCT 24
A huge 13-page look at some standout releases arriving in the fourth quarter of 2012
LABELS BY TIM INGHAM
S
ony UK CEO and chairman Nick Gatfield has forecast a strong
return to growth for the record industry after announcing a new milestone in the transition towards digital product. Speaking at Sony Music’s
company day in London this week, Gatfield revealed that more than 50% of the major’s revenue in the first half of the year was derived from digital media. Worldwide, Sony Music posted approximate total revenues of $2.51bn (£1.56bn) in the six months to the end of June. “This is a watershed
moment for the business and a clear indication that real transformation is taking place in our industry,” said Gatfield. “When you look at the sheer
scale of the daily connections between artists and fans and the technology advances that allow music to be consumed wherever
and whenever the audience demand, I firmly believe that the potential for our business is enormous and the future bright. “With strong government
support to protect artists and intellectual property combined
with rights-holders’ willingness to innovate and encourage new business models this industry will soon return to significant growth.” The revelation of Sony’s 50%
figure comes after BPI data in May that suggested more than
“This is a watershed moment for the music business and a clear indication that real transformation is taking place in our industry” NICK GATFIELD, SONY
half of UK record trade income in the first three months of 2012 came from digital services. Gatfield claimed that more than 20% of overall record industry revenue was being invested into A&R, pointing out the figure was “more than any other business spends on R&D”. He said that Sony UK had
“re-engineered” its frontline labels – Columbia, RCA, Epic and Syco – to “focus heavily on A&R and new artist incubation and development supported by a strong central marketing and marketing services team to ensure excellence in planning and delivery of key release campaigns”. In addition, Gatfield said
that Sony had created a network of “associated labels to complement our existing core label groups”, adding: “This is a vehicle for what I describe as A&R entrepreneurs – highly experienced creative music people with an ability to identify and nurture talent. The structure allows them to focus on the
A&R ‘fundamentals’ whilst plugging into the central marketing team to deliver the music to the consumer.” The executive revealed that in the past 12 months, Sony’s UK roster of artists had “provoked an average of five million connections every day” over Facebook, Twitter, artist websites, YouTube, Vevo, Spotify, Google and other online platforms. “Over 12 months that daily average totals 1.8 billion – more than the populations of China and the US combined,” said Gatfield. “That is the reach of our
artists and their music – and it represents the size of the opportunity for them, for us and for our retail, media and brand partners every day. “There is no other business
that can claim this level of consumer engagement: music is first and foremost a passion and an incredibly powerful medium to make long-lasting audience connections.”
Warner/Chappell boss says company keeping tabs on Sony/ATV sell-offs
Warner/Chappell chairman and CEO Cameron Strang (right) has revealed his company is in the market for suitable assets as Sony/ATV looks to divest catalogues and songwriters following its EMI Publishing takeover. Although he would not be specific about what it might buy, Strang told Music Week
Warner/Chappell was “definitely interested” in adding to its portfolio in light of a sell-off by Sony/ATV and its consortium partners to meet EC regulatory demands. The $2.2bn (£1.4bn) deal
to buy EMI’s publishing arm was granted in Europe on the condition the takeover partners sold four publishing catalogues – Virgin UK, Virgin US, Virgin Europe and Famous UK – and
let go a dozen contemporary Anglo-American songwriters, including Eg White and Take That’s Howard Donald and Jason Orange. Strang said: “We’re always
looking for the right repertoire, the right artists, the right producers, the right songwriters, so if they fit in with what we’re looking for and what we want to do, then we will be looking at signing and buying and if they don’t we won’t be.”
Already as an indirect result
of the EMI Publishing takeover Warner/Chappell has landed one of the most-respected and highly-successful music publishing executives in the shape of Jon Platt.
It was announced this week
that Platt, previously EMI Publishing creative president of North America, was joining Warner/ Chappell in an LA- based role as North America creative president.
Platt, who in his new role
will oversee the publisher’s A&R activities across North America and report to Strang, signed talent during his 17-year tenure at EMI Publishing including Jay-Z, Kanye West, Usher, Drake, Beyonce and Snoop Dogg, while he was also involved in re-negotiations to re-sign Pharrell Williams and
Sean “Puffy” Combs. See Cameron Strang interview on pages 12 and 13
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