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A case study of the media conglomerate EMI.

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Introduction

(E1) Emi are one of the most well known record publishers on the face of the planet with over 60 studios world wide and many more offices to back it up, and has produced many great artists like Aerosmith and Robbie Williams. In 1939 the Gramophone Company merged with Columbia Graphophone to form Electric and Musical Industries (later EMI). In 1955 EMI acquired Capitol Records in Los Angeles, one of the largest record labels in the US whose roster includes Nat 'King' Cole, Frank Sinatra, Peggy Lee and Gene Vincent. Then in 1979 EMI purchased the Liberty/United Artists record company, which includes the Blue Note label. Followed by the takeover of SBK Entertainment World, Inc. in 1989. Then in 1999 Emi managed the hostile takeover of Hit & Run Music Publishing by gaining 51% of the shares. Then in 2002 EMI won the Queen's Award for Enterprise for the fourth time. Also the company made the 100,000,000 sale of Garth Brooks albums in the US. The whole history of the company is as follows: 1800s 1887 - Emile Berliner demonstrates the first gramophone, the technological foundation of the business 1897 - The Gramophone Company and Columbia Phonograph open for business in London 1898 - The Gramophone Company makes its first recordings - Branches opened in Germany, France, Italy and central Europe 1899 - Gramophone Company buys Francis Barraud's painting, 'His Masters Voice' (with 'Nipper' the dog) and adopts the image and title as its trademark 1900 1900 - Gramophone Company opens offices in Russia and Australia 1901 - 10 inch shellac disc introduced - Gramophone Company opens offices in India 1902 - Gramophone Company opens offices in Japan and record pressing plant in Russia - Tenor Enrico Caruso records 10 songs, becomes Gramophone Company's first major artist 1903 - Gramophone Company presence established in China - The 78 rpm 12-inch shellac disc introduced 1904 - Gramophone Company Ltd is listed on the London Stock Exchange 1906 - 60% of Gramophone Company profits come ...read more.

Middle

Because EMI is a PLC it means that the company has what is called 'limited liability'. This means that if the company were to have a law suit put against them then the owners of the company "shareholders" are not liable to lose anything accept for there shares in the company. Unlike a company with unlimited liability, which the owners could stand to lose more than just their companies, they also stand to lose what they posses like their homes and cars etc. But other factors of being a PLC are that the company can easily find ways to raise capital for expansion, especially as large well known firms are low risk ventures for banks, and also shares are able to be sold openly on the stock markets around the world. Unlike private limited companies who can only sell a limited number of shares and cannot sell them openly on the markets. There are also disadvantages to being a PLC, for example all PLC's need at least �50,000 to start up the status of a public limited company. Also every year an annual report and account must be published and a copy given to all shareholders, and also be made available for public viewing. An AGM must also be held every year so that the owners of Emi (the shareholder) can have a chance to try and influence the way in which the company works. But normally Also a high risk to the company is that shares sold on the stock market could be sold on to rival companies who would only need 50% + of the shares to take control. Another major process the company has to do is collect the right documentation and this has to be done even before the company can start trading. The business needs "a Memorandum of Association and Articles of Association to be sent to the company registrar" then the company registrar must issue a "Certificate of Incorporation" then the company issues a "prospectus" after this the ...read more.

Conclusion

� US launched November 2002 � European launch coming soon � Global roll out over the year Growing digital download business. Growth in legitimate services. Enabling legitimate services. � Understanding the consumer: preliminary results � EMI's digital download strategy � Additional sources of revenue growth New revenue sources. � Internet physical sales � DVD music video � Internet radio � Ring tones, improving to ring tunes � Digital downloads Further revenue sources identified. � DVD audio � Pre-loaded content � Additional wireless services - IVR dedications - SMS - multi-media message services � B2B services - music clip art - corporate communication - placed base services � Other non-recording income New business models. � Consumer subscription � "Traditional retail" � Advertising supported � Blended / hybrid - bundled - marketing supported - revenue share - combinations with retail Summary. � Traditional retail market under pressure � Wide range of attractive alternative services � We need to bridge the gap: - making progress on piracy - understand consumer behaviour - aggressively moving forward to enable legitimate online models - pursuing other revenue streams � Challenges significant, but opportunity enormous Along with the fight against piracy Emi are also hoping to expand their company by taking over many other firms in the near future to gain more of a hold on the music industry. They are also looking to boost sales figures where they have been lost in the last year, in countries like china. When you compare Emi's sales figures from the last two reports you start to get a picture of how the company is doing. From 31st March 2002 to 31st March 2003 global music sales had dropped 9%, Emi's sales only declined by 8.4%. Emi also made a group operating profit of �254.0m up 33.1%. Currently Latin America and R.O.W. (Australia, New Zealand, etc) hold the lowest sales for Emi and this has been show over the last five years. during the last year Emi brought their overall sales figures up from (�205.5m) to �216.2m a rise of �421.7. Thomas Stone 13VW Business AVCE Unit 1 ...read more.

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