EMI jostles into busy online market

EMI is planning to enter the crowded digital music market, forming its own site to join the likes of iTunes and MySpace and marketing its artists’ music directly to fans online.

EMI.com, a consumer-facing portal to be launched before Christmas, has been closely monitored by Guy Hands, head of the Terra Firma private equity group that bought the record label for £2.4bn ($4.2bn) last year.

The digital project, which began this year, will offer audio and video content. Users will be able to buy music and download it. There will also be unique content and elements of the site will be free. EMI declined to comment further about its plans.

The record label wants to position EMI.com as a “learning lab” where people can discover new music as part of a broader digital strategy.

Mr Hands has accused the music industry of being flabby, bureaucratic and refusing to face the challenges of the internet. He has spoken often about the prospects of the internet for marketing and online communities.

However, similar digital initiatives by the music industry, such as Sony’s PressPlay, failed because they did not offer consumers access to the catalogues of rival labels.

One music industry executive said: “Research has shown that when consumers are looking for music they want it all in one place. They want to buy Beyoncé when they are buying Rihanna. I am not quite sure what EMI will get for the money they have spent on it.”

Last year EMI – whose artists include Kylie Minogue and Coldplay – had a 13 per cent share of the global music business; Universal Music had 28 per cent; Sony BMG about 17 per cent; and Warner Music 15 per cent, according to Music & Copyright.

Most of the important music labels have some consumer-facing offering. Universal Music, whose acts include Amy Winehouse, also intends to launch a video portal service that will offer professionally produced music videos and original programming early next year. That product is intended more for professional website owners and for developers than for consumers.

There are also high hopes for music downloads on mobile phones, including services such as Nokia’s “Comes with Music”, which has signed up all the big labels.