EMI Reports Increased Revenues

Reuters: Yesterday, at the annual shareholders general meeting, EMI credited big sales of the new Coldplay and Gorillaz albums for increasing revenues and operating profits
in both its recording and publishing units for the fiscal year ahead of the same period last year. "X&Y" has so far shipped close to 6 million units and Gorillaz's "Demon Days" has shipped 2 million units. "We remain positive on the long-term prospects for the music industry and confident that EMI Group will deliver an improved performance in the current financial year", stated Chairman Eric Nicoli..."We expect consumer uptake of legitimate digital music to be the key industry growth driver in the coming years."

Digital revenue was more than double from the same period last year and represented 4.8 percent of the total - compared with 3.5 percent in the fourth quarter of the last fiscal year. EMI shares ended up 1.2 percent at 258.9 pence on the London Stock Exchange Thursday...

Related:
--EMI Says Quarterly Earnings Up

Delta's Song Plans Partnership With Labels

Reuters: It looks like Delta could be following an innovative taste-making trend set my Starbucks after it announced yesterday that it's low cost carrier Song will be entering into a music label partnership to sell albums on its long-haul flights and via retail. An airline is probably the last place most people would look to discover or purchase new music, but the company announced plans to launch its own recording label "Song Records" last May and is now planning to add Interscope to the label roster list...Under the deal, Song Records will introduce new music every quarter and the music will naturally be played on the in-flight entertainment system...I've yet to see any mention of downloads being made available on the carrier's website - which would seem like a no-brainer...Wouldn't it be kinda cool though if you could just plug your iPod into it and grab the tunes you liked most on the spot or use the touchscreen to highlight your favorite ones and have the songs waiting for you the next time you check your email? (Better yet, billing could be automatic to the credit card you used to book the flight... That kind of value-add and seamless process sure seems to work well with the telecommunications carriers and I'm willing to go out on a limb and say that by this time next year, Delta won't be flying solo in this new captivating channel...

Brooks Branch, president of Creative Branding Group, said the venture was Creative Branding's brainchild amid what he called a "scrambling" music business. "The venture helps Song, which has a large captive audience it is looking to entertain, and helps the albums, which benefit from the extra distribution."

Sanctuary Stock Plunges

Marketwatch: Sanctuary's shares plunged significantly today after it warned that its fiscal-year earnings (before interest, tax, depreciation and amortization) will be substantially less than last year and "very substantially lower" than market consensus... Shares dropped a whopping 29%...

Related:
--Sanctuary Plunges After Reporting Earnings Dropped
--Sanctuary Warns on First-half Profits

EMI Music Partners With Yo! Sushi

Netimperative: EMI's music and video content will soon be delivered to seven iPods and plasma screens located in two of Yo! Sushi’s newest restaurants...The iPods (available in listening booths) are part of a marketing collaboration between Yo! Sushi and Apple UK. The music content will be updated regularly with the latest digital releases along with mood and genre-themed play lists...

Georgia Hall, head of marketing at Yo! Sushi, said: “The deal with EMI Music UK is bringing back the old-fashioned listening booth, enabling diners to sample new music or re-visit old favourites while waiting for friends or simply as entertainment if dining alone.”

The unique deal is part of EMI's ongoing objective of delivering its content through a multi-channel, multi-media approach, but brings up licensing issues in my mind as the music playback inside the booths technically constitute a public performance...

EMI Executives Insulated

Independent: According to the latest EMI annual report, covering the 2004-05 financial year which ended in March, "EMI directors benefited from another year of bumper boardroom pay, despite a sharp drop in the music company's profits..."

Atlantic Signs Reggaeton Artist Tego Calderon

Reuters: Yesterday, Atlantic Records announced that it has signed a multiyear, multialbum partnership with Puerto Rican superstar Tego Calderon and his Jiggiri Records. The move signifies Atlantic's latest efforts of moving into the hot reggaeton/Latin urban music market. "The reggaeton and Latin hip-hop movements are rapidly merging into the mainstream of America music and media, and Tego's innovative style, street credibility and charismatic presence have already made him a cultural icon," Atlantic co-chairman/chief operating officer Craig Kallman said...."If things go well, digital versions of Calderon songs could soon become very popular...Tego is going to be as compelling a ringtone download as is 50 Cent." If he's right that could be huge since 50 Cent has dominated the ringtone charts for months...