EMI Spends $50 Million A Year To Scrap Unsold CDs

If you were wondering just how screwed up the music industry is, these stats (from today's FT) will answer the question...

* Record companies lose money on 85 per cent of new artists, even before overheads

* More than 30 per cent of EMI's artists have not produced an album. Many never will.

* EMI scraps about 20 per cent of CDs produced, at an annual cost of £25m

* EMI spends £70m a year subsidising artists who will never make it any money.

* EMI's marketing expenditure has been running about £60m over budget

* 200 of the 14,000 artists EMI deals with each year account for more than half its sales

* Just 6 per cent of EMI Music's 4,500 staff work in "A&R" scouting and artist development

* 7 per cent of EMI's digital contracts account for 80 per cent of its digital revenues

Source: Terra Firma

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