EMI faces up to the economic realities of the New Media

The economic realities of the new media continued yesterday for one of the bedrocks of the music industry,EMI.

The company announced yesterday that it s rooster of 14,000 artists will be cut as will 2000 jobs in order to get the Company back into profit.Once again the realities of a public who refuse to pay a great deal for online entertainment coupled with the move away from recorded music to downloads is to blame.

Chief Exec Guy Hands said at a news conference that

that only 3pc of the company's acts were profitable on today's overheads

A staggering quote.Hands has attrcated the irk of many in the music industry as well as EMI's artists after private equity firm Terra Firma bought the company for £3.2b and has pledged to turn the business around.He plans to centralise the organisation,make excisting artists more profitable and to concentrate on selling individual tracks rather than the complete album.

There are alos rumours that he planes to clip the wings of the existing artists,with more economic contracts and paying a daily rate(Robbie Williams take note)