EMI

EMI consisted of two divisions, EMI Recorded Music (the business which signs and develops recording artists, marketing and promoting them as well as distributing their recorded music) and EMI Music Publishing (the business which focuses on acquiring and marketing the rights to musical compositions).

EMI Recorded Music owned a catalogue of over three million recordings, and EMI Music Publishing owned over a million contemporary and classic music compositions.

Terra Firma recognised the potential to develop the music publishing catalogue while streamlining the Recorded Music division, repositioning EMI as a digital rights management group.

Recorded Music’s plethora of local record labels were radically restructured into three global business units focused on New Music, Catalogue and Music Services. This led to streamlined activities, a focus on developing artist brands and a deeper consumer understanding – an approach since adopted by the other major labels.

Non-profitable legacy activities were substantially reduced and rigorous cost discipline was introduced, saving substantial amounts per annum.

Profitable activities received greater investment, leading to the success of new artists. Revenues stayed broadly flat during Terra Firma’s ownership against a rapid market decline while EBITDA and the EBITDA margin significantly improved year-on-year between 2007 and 2010.

EMI was put into administration in February 2011 and sold to Citigroup in a pre-packaged process without Terra Firma’s involvement. Citigroup became the new owners of EMI despite the fact that EMI was up-to-date on all interest payments and had complied with its financial covenants throughout Terra Firma’s ownership.