Ground Breaking Development: EMI hires Google's CIO
Wed. April 2, 2008
Author: Elliott Hurst
You may have missed it. Even if you saw it, you may have dismissed it. Or you plain just didn't care. Billion dollar company loses a main guy to another billion dollar company. Big deal. Well... If you care about the music industry, or even have a passing interest, this is a VERY big deal.
According to Reuters today, EMI hired Google's CIO (Chief Information Officer) Douglas Merrill to be president of its digital music business. "Merrill will head a new global function including digital strategy, technology and business development." WOW.
Let's quickly recap...
- Labels in control for decades, running the music biz
- Internet becomes a revolutionary force in the 90's and the mp3 is born
- New power brokers enter the scene including Apple, FOX, LiveNation
- Labels gradually and then quickly lose sales, control, value, significance
- Music biz is in a state of flux, new technologies, social networking, increased players, and more access and selection is available than ever before
The labels know they have the history, the knowledge, and the chops to make music. They just lost the means to monetize it. EMI made the first step towards this realization by becoming the first major label to offer DRM-free music. Now EMI is boldly attempting to get back into the winners circle.
THERE'S MORE COMPUTER IN A CAR THAN CAR
EMI, no doubt under the strategic guidance of it's owner Terra Firma (who just bought the fledgling label for $4.7B US last year) realizes the industry they are in. It's not the music biz. It's the digital media biz.
Indie bands. New music. Live shows – Supernova.com
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