Music lobbying group agrees to a cost saving plan requested by the record label.
A few months back I reported how EMI, one of the so-called "Big 4" record labels, had threatened to withdraw its membership from the IFPI, the music lobbying organization, unless it was willing to reduce the amount of money required for membership.
Each of the four major record labels are said to contribute some $132.1 million USD to the IFPI, the RIAA, as well as a number of other national associations. With music piracy more rampant than ever EMI probably realized that it could better use that money for artist development and support instead. At issue also the fact that it was looking for ways to save money after its recent acquisition by a private equity group called Terra Firma.
Jean-Francois Cecillon, President, EMI Music International Labels, said: "We undertook to work with our colleagues in the other major labels and with John Kennedy on a cost saving plan for the IFPI and together we have been able to find solutions which we believe are achievable whilst maintaining what the IFPI does best in representing our industry. I am glad to say that on the basis of those discussions we have been able to confirm our continued membership of the IFPI and we look forward to working with the IFPI on the crucial issues that our industry faces."
There’s no details about the actual "cost saving plan" that they’ve agreed to, but its apparently enough to keep them a happy dues-paying member of the IFPI for the time being.
John Kennedy, Chairman and Chief Executive of IFPI, says: "I am delighted that EMI has decided to continue working with IFPI. It is extremely valuable for us to have their support in trying to address the many different challenges the recording industry is facing and addressing."
Too bad the IFPI still has little success to show for all hundreds of millions its apparently burned through over the years. The one thing it should really address is the changing face of music distribution and how its member record labels are failing to meet this challenge.
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- EMI to Quit Funding RIAA & IFPI?
- IFPI Demands $2.56 Million USD from The Pirate Bay
- BPI Plays Down IFPI Claims
- (2006 Annual Piracy Report) Setting the IFPI Record Straight
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