EMI

EMI Group Limited
Company type	Public limited company
Industry	Music, electronics, electrical engineering
Founded	March 1931; 95 years ago
Founder	Merger of Columbia Graphophone Company and Gramophone Company
Defunct	2012
Fate	Acquired by Universal Music Group (music division) and Sony/ATV (publishing arm)
Headquarters	London, United Kingdom
Area served	Worldwide
Key people	Sir Joseph Lockwood (notable leader)
Products	Records, music publishing, broadcast equipment, computers, CT scanners, photomultiplier tubes

EMI Group Limited—known as EMI Group plc until 2007 and originally derived from the initials of Electric and Musical Industries, also referred to as EMI Records or simply EMI—was a British multinational conglomerate established in London in March 1931. By the time Universal Music acquired it in 2012, EMI stood as the fourth largest record label conglomerate within the music industry, ranking among the "Big Four" record companies (later becoming part of the "Big Three"). Its prominent labels included EMI Records, Parlophone, Virgin Records, and Capitol Records. After the acquisition, Universal Music took over management of these labels, with the exception of Parlophone, which was sold to Warner Music.

EMI was publicly traded on the London Stock Exchange and at one point was included in the FTSE 100 Index. However, mounting financial challenges and a debt burden of US$4 billion culminated in its takeover by Citigroup in February 2011. Citigroup’s ownership was temporary; by November 2011, EMI announced plans to sell its music division to Vivendi's Universal Music Group for $1.9 billion and its publishing arm to a Sony/ATV partnership for approximately $2.2 billion. This Sony consortium comprises the estate of Michael Jackson, the Blackstone Group, and Abu Dhabi’s Mubadala Development Company. To address outstanding debts, EMI dismantled its operations in the UK, US, and Canada, although some international branches continue to operate.

Currently, EMI Music Publishing is under the ownership of Sony Music Publishing, which increased its stake by 70% in 2018, further solidifying its position as a dominant force in music publishing.

History

Electric and Musical Industries Ltd came into existence in March 1931 through the merger of the Columbia Graphophone Company and the Gramophone Company, owner of the "His Master's Voice" brand. This vertically integrated enterprise combined sound recording production with manufacturing of recording and playback devices, laying a strong foundation in recorded audio technology.

EMI’s gramophone manufacturing operations propelled its success for over forty years across broader fields within electronics and electrical engineering.

In October 1979, EMI joined forces with Thorn Electrical Industries to create Thorn EMI. On 16 August 1996, shareholders voted to separate Thorn from EMI, reestablishing EMI Group plc while spinning off electronics and rental services into Thorn plc. The company ceased to exist following its dissolution in 2012.

Television

In 1934, EMI’s research division under Sir Isaac Shoenberg developed the electronic Marconi-EMI system, which supplanted Baird's mechanical television by 1936. After World War II, EMI supplied broadcasting equipment such as the BBC’s second television transmitter at Sutton Coldfield along with broadcast cameras for British television broadcasters. Their premier product was the EMI 2001 colour television camera, which dominated UK broadcasting from the late 1960s through to the early 1990s. Although exports were limited, this product firmly established EMI’s role in broadcast technology before it withdrew from manufacturing.

Blumlein and radar

In 1931, EMI engineer Alan Blumlein secured a patent for stereophonic sound technology, laying the groundwork for stereo records, films, and surround sound systems. Tragically, he lost his life in 1942 during flight testing of an experimental H2S radar system.

Throughout World War II and the subsequent years, EMI Laboratories located in Hayes, Hillingdon made significant advances in radar technology. Their contributions included the British Army’s GL-II anti-aircraft fire-control radar receiver, developments in microwave components such as the reflex klystron oscillator, infra-red image converters, and guided missile systems equipped with analogue computing—demonstrating EMI’s pivotal role in defense electronics innovation.

Photomultipliers

For an extended period, EMI maintained a strong reputation globally as a producer of photomultiplier tubes. This division was eventually transferred to Thorn under the Thorn-EMI partnership and subsequently spun off as an independent entity named Electron Tubes Ltd.

Computers and CT scanner

During the 1950s, EMI engineered the Electronic Business Machine, a computer utilizing valves and magnetic drum memory to manage payroll processing for the British Motor Corporation.

In 1958, under the leadership of electrical engineer Godfrey Hounsfield at EMI's Central Research Laboratories in Hayes, the EMIDEC 1100 was developed as the UK’s first commercially available computer built entirely with transistors.

Supported by funding from the UK Department of Health and Social Security alongside EMI’s internal research resources, Hounsfield pioneered the first CT scanner in the early 1970s, revolutionizing medical imaging. The EMI scanner earned EMI the Queen's Award for Technological Innovation in 1973. For this groundbreaking work, Hounsfield was honored with the Nobel Prize in Physiology or Medicine in 1979.

Although EMI initially experienced success in medical imaging manufacturing, its production facilities were eventually sold off to firms including Thorn (see Thorn EMI), with manufacturing and development relocating to sites such as Crawley and Wells.

Emihus

Emihus Electronics operated out of Glenrothes, Scotland, with ownership split between Hughes Aircraft (California, US) holding 51% and EMI owning 49%. The company produced integrated circuits and electrolytic capacitors and briefly manufactured hand-held calculators under the Gemini brand during the mid-1970s.

Music

The Gramophone Company, which later evolved into EMI, established subsidiaries throughout the British Commonwealth and worldwide regions including Europe, the Middle East and Africa, Canada, Russia, India, China, Japan, Australia, and New Zealand. Until local labels like Festival Records emerged in the 1960s, EMI’s Australian and New Zealand branches dominated their popular music industries. The Hayes archive preserves over 150,000 historic 78-rpm recordings from EMI’s collection; some have been reissued since 2008 by Honest Jon's Records.

In 1931, EMI inaugurated the renowned Abbey Road Studios in London. During the 1930s and 1940s, its artist lineup featured luminaries such as Arturo Toscanini, Sir Edward Elgar, and Otto Klemperer. Notably, key A&R figures like George Martin were appointed by EMI; Martin would later sign iconic acts including the Beatles.

The merger of Gramophone Company with the Columbia Graphophone Company (which included Parlophone) in 1931 resulted in Electric & Musical Industries Limited (EMI). Initially, majority ownership rested with the Radio Corporation of America due to its acquisition of Victor Talking Machine Company. RCA divested from EMI by 1935 but retained rights to use "His Master's Voice" trademarks within North and South America.

Following antitrust measures, EMI sold Columbia USA in 1934. Outside North America, EMI continued using the Columbia label until it was replaced by EMI Records in 1973. After Sony acquired CBS Records in 1990, EMI divested remaining Columbia rights globally—except for Japan—to Sony Music Entertainment.

EMI introduced its first long-playing records (LPs) in 1952 and began producing stereophonic recordings by 1955. In response to losing licensing deals with RCA Victor and Columbia USA in 1957, EMI entered the American market by acquiring a controlling interest (96%) in Capitol Records.

Between 1960 and 1995, EMI’s London headquarters were located at 20 Manchester Square, famously featured on the Beatles' Please Please Me album cover. The company’s classical music roster included prominent British and European orchestras such as the Philharmonia Orchestra and London Symphony Orchestra. While contracts with North American orchestras were limited, one notable partnership was with the Pittsburgh Symphony Orchestra under conductor William Steinberg.

Under Sir Joseph Lockwood’s leadership from the late 1950s through early 1970s, EMI enjoyed major achievements through labels such as Parlophone, His Master's Voice, Columbia, and Capitol. Their artist roster boasted bands like the Hollies, the Shadows, the Beach Boys, and the Beatles, alongside solo performers including Frank Sinatra and Nat "King" Cole.

In 1967, EMI repositioned HMV to concentrate solely on classical music while fostering progressive rock via its subsidiary Harvest Records launched in 1969.

Electric & Musical Industries transitioned to EMI Ltd. in 1971. By 1973 most legacy labels were unified under the EMI brand; The Gramophone Co. Ltd. was renamed EMI Records Ltd. In 1978 EMI introduced a second US label named EMI America Records alongside Capitol and established EMI Music Worldwide with Bhaskar Menon as CEO. That year also saw acquisition of United Artists Records along with its Liberty and Imperial subsidiaries. Subsequently in 1979 Thorn Electrical Industries merged with EMI forming Thorn EMI.

During the late 1980s, EMI America merged with Manhattan Records (established in 1984), becoming EMI Manhattan before being absorbed into Capitol by 1989.

Thorn EMI gained controlling interest in Chrysalis Records in 1989 and completed full ownership by 1991. Shortly thereafter Thorn EMI acquired Virgin Records from Richard Branson in one of its most prominent purchases. In 1992 Thorn EMI expanded into Christian music by acquiring Sparrow Records.

Consequences of Thorn Demerger

On 16 August 1996, shareholders of Thorn EMI agreed to split the company due to differing strategic directions, leading to the formation of the media-focused EMI Group PLC. The following year, EMI Records USA was consolidated into the Virgin and Capitol labels.

Pathé Records, based in Shanghai since the 1930s, operated under EMI and held a dominant position in the cantopop scene across Greater China until its decline in the mid-1980s. By 2004–2006, EMI had completely withdrawn from the c-pop sector; subsequently, Hong Kong artists previously signed with EMI were managed by Gold Label, which had no ties to EMI.

On 21 November 2000, EMI became the first major label to license its catalogue digitally by partnering with Streamwaves for online streaming services.

In 2002, Robbie Williams inked a landmark deal for six albums valued at over £80 million (approximately $157 million), setting a record as the largest British music contract and ranking second worldwide at that time.

In December 2005, Apple Records, representing The Beatles’ interests, initiated legal action against EMI over an alleged $50 million in unpaid royalties. While EMI acknowledged regular audits, it contested the claims. The dispute was ultimately resolved in April 2007 under confidential terms.

EMI announced on 2 April 2007 that it would release DRM-free music in AAC format through Apple's iTunes Store via iTunes Plus. These tracks were priced at $1.29/€1.29/£0.99, whereas older DRM-protected songs remained available at lower prices. Consumers could upgrade previously purchased DRM-encumbered tracks for $0.30/€0.30/£0.20. Additionally, DRM-free albums and music videos were introduced. This higher-quality content became accessible globally on iTunes by 30 May 2007, with intentions to expand availability on other platforms.

Following this initiative by EMI, Universal Music Group also began experimenting with offering DRM-free music.

In May 2006, EMI attempted to acquire Warner Music Group, which would have reduced the Big Four record labels to three; however, Warner rejected the proposal and countered with a Pac-Man defense by proposing to buy EMI for $4.6 billion—a bid that EMI declined.

Acquisition by Terra Firma

After experiencing a decline in UK market share from 16% to 9% and reporting losses amounting to £260 million during 2006/2007, EMI was purchased by Terra Firma Capital Partners in August 2007 for £4.2 billion. Post-acquisition, several prominent artists such as Radiohead departed from EMI; others including Paul McCartney had left earlier. The Rolling Stones signed a one-album contract with Interscope Records/Universal Music Group outside of EMI before securing a long-term agreement with Universal in July 2008. Additionally, Terra Firma’s takeover prompted Pink Floyd to file a lawsuit concerning unpaid royalties; nonetheless, Pink Floyd entered into a new global contract with EMI in January 2011.

Guy Hands, CEO of Terra Firma, initiated restructuring measures aimed at cutting between 1,500 and 2,000 positions and reducing expenses by £200 million annually. Consequently, UK CEO Tony Wadsworth resigned in January 2008 after a tenure of 25 years. The workforce reductions impacted up to one-third of EMI’s approximately 5,500 employees. The band Thirty Seconds to Mars sought release from their contract due to layoffs and royalty payment issues; in response, EMI filed a $30 million lawsuit alleging breach of contract. This case was eventually resolved based on California’s "De Havilland Law," which restricts service contracts to seven years. Industry commentators regarded the litigation as punitive; these challenges influenced the band’s 2009 album This Is War and their 2012 documentary Artifact.

In 2008, EMI withdrew from the South-East Asian market entirely, compelling its artists there to find alternative labels. This move left South-East Asia as the only region without an active EMI presence; however, operations continued in Hong Kong and Indonesia (under Arka Music Indonesia). EMI’s Chinese and Taiwanese divisions along with Hong Kong’s Gold Label were sold to Typhoon Group and rebranded as Gold Typhoon. The Philippine branch transformed into PolyEast Records, operating as a joint venture with Pied Piper Records Corporation. From December 2008 onward, Warner Music Group handled distribution of EMI’s physical releases throughout South-East Asia while new titles in China and Taiwan were distributed via Gold Typhoon. Physical releases from EMI Korea Limited were managed by Warner Music Korea. Meanwhile, EMI Music Japan remained wholly owned by EMI following its acquisition of Toshiba’s stake in July 2007.

Reports surfaced in July 2009 indicating that EMI intended to discontinue CD sales through independent retailers as a cost-saving measure; however, this primarily affected only a limited number of smaller physical stores.

Citigroup ownership

In February 2010, EMI Group disclosed pre-tax losses amounting to £1.75 billion for the fiscal year ending March 2009, which included significant write-downs on its music catalogue. Furthermore, KPMG raised concerns about the holding company's ability to continue as a going concern due to solvency issues.

Citigroup, which was owed $4 billion in debt, assumed full ownership of EMI Group from Terra Firma Capital Partners on 1 February 2011. This transaction involved writing off £2.2 billion of debt, effectively decreasing EMI’s liabilities by 65%. Subsequently, the group was placed on the market, with final offers requested by 5 October 2011.

Sony/Universal/Warner sale

On 12 November 2011, EMI revealed plans to sell its recorded music division to Universal Music Group (UMG) for £1.2 billion ($1.9 billion), while its music publishing arm was sold to Sony/ATV Music Publishing for $2.2 billion. Warner Music Group also submitted a $2 billion bid for the recorded music segment. The merger faced opposition from IMPALA. In March 2012, the European Union initiated an inquiry into Universal’s acquisition of EMI’s recorded music business to evaluate potential effects on competition and pricing.

On 21 September 2012, both the European Commission and the US Federal Trade Commission approved UMG’s purchase of EMI, contingent upon UMG divesting approximately one-third of its operations to other established music companies. To meet these requirements, UMG sold off labels including V2 Records, Parlophone Records, Sanctuary Records, Chrysalis Records, Mute Records, EMI Classics, Virgin Classics, the 2CD Originals Series, and most regional EMI labels across Europe. Universal retained control of the Beatles’ catalogue (transferred to Calderstone Productions) and Robbie Williams’ Chrysalis recordings (moved under Island Records).

UMG finalized the acquisition on 28 September 2012 and completed rebranding by April 2013. In December 2012, UMG sold the Mute catalogue to BMG Rights Management. Then in February 2013, Warner Music Group acquired Parlophone, Chrysalis Records, EMI Classics, Virgin Classics, the 2CD Originals Series, and select European regional labels for $765 million (£487 million), with regulatory approval following in May.

Universal maintained ownership of EMI’s former European labels in countries such as Ireland, Italy, the Netherlands, Germany, Switzerland, Austria, Hungary, and Finland. It continued operating EMI-branded entities and launched Virgin EMI Records as a UMG imprint in the UK. After Warner acquired Parlophone Music Group and its catalogue in 2013, the original EMI Records Ltd. was renamed Parlophone Records Ltd.

The Australian and New Zealand EMI Columbia catalogues were assigned respectively to Universal Music Australia’s EMI Recorded Music imprint and Universal Music New Zealand.

Warner integrated EMI Classics and Virgin Classics into Warner Classics; specifically, EMI Classics’ artist roster merged into Warner Classics while Virgin Classics’ artists were absorbed into a revived Erato Records.

In November 2013, EMI’s Middle Eastern division was consolidated into Universal Music as Warner Music Group’s regional distribution responsibilities shifted to Universal.

By June 2014, Universal reestablished EMI’s Taiwanese branch with initial signings including artists A-Mei, Rainie Yang, and Show Lo.

In May 2016, Blue Raincoat Music purchased the majority of Chrysalis’s British catalogue from Warner Music, reinstating Chrysalis as an independent label. Nevertheless, portions of Chrysalis’s UK catalogue remained with Parlophone and Rhino Entertainment retained rights in the US. The Ramones’ American back catalogue stayed under Geffen Records via Universal Music Enterprises. Most of Chrysalis’s American catalogue continued under Capitol Music Group.

Blue Raincoat owns and distributes the European Chrysalis catalogue along with rights to additional artists beyond Chrysalis itself. The non-Chrysalis roster expanded to incorporate former EMI acts such as Naked Eyes. Outside the United States, rights for Belinda Carlisle’s sole Chrysalis album reverted to Virgin Records.

Also in May 2016, BBC broadcasted a documentary titled EMI: The Inside Story, exploring the company’s history.

On 16 June 2020, Universal revived the legendary label by rebranding Virgin EMI as EMI Records and appointed Rebecca Allen as president. The Virgin brand remains active as an imprint within EMI.

Entertainment and Leisure

In 1964, EMI expanded its portfolio by acquiring Blackpool Tower, followed by the takeover of the Winter Gardens complex in 1967. That same year, the company purchased the Grade Organisation, the largest showbusiness talent agency in the UK, for £7.5 million. This acquisition also included the Shipman and King chain, which operated 32 cinemas across the Home Counties.

Film, Theatre, and Television

EMI Films was created in 1969 after the acquisition of Associated British Picture Corporation (ABPC). ABPC owned 270 ABC Cinemas, held a 50% stake in ITV contractor Thames Television, operated Elstree Studios, and had recently added Anglo-Amalgamated to its assets. Bernard Delfont, from the Grade Organisation, assumed the roles of chairman and CEO. In 1970, Delfont sold his Bernard Delfont Organisation to EMI and subsequently became EMI's Chief Executive in 1979.

The company's premier cinema venue was the ABC 1 and 2 Shaftesbury Avenue located in London. By 1974, EMI divided its Film & Theatre Corporation into two separate entities: EMI Cinemas and EMI Leisure Enterprises. EMI Cinemas managed 272 cinemas throughout the UK, including those under the ABC brand.

Following its merger with Thorn Electrical Industries in 1979, EMI’s film division was rebranded as Thorn EMI Screen Entertainment. In April 1986, Thorn EMI divested its film production and distribution arm (Thorn EMI Screen Entertainment), home video division (Thorn EMI Video), and cinema operations (ABC Cinemas) to businessman Alan Bond. Within a week, Bond sold these assets to The Cannon Group.

EMI Leisure

Formed in April 1974, EMI Leisure Enterprises oversaw operations such as Blackpool Tower, sixteen squash clubs, five bowling alleys, discotheques, twenty-three licensed venues, and various other amusement businesses. The division expanded into emerging leisure sectors including Brighton Marina and golf with the acquisition of Aldenham Golf Club. In 1977, EMI purchased the Empire Ballroom and Cinema situated in London’s Leicester Square along with Bailey Leisure Services Limited (later renamed EMI Dancing), thereby incorporating dance halls, cabaret clubs, and discotheques nationwide. By the late 1970s, leisure activities contributed approximately 15% of EMI’s total group revenue. The company also held ownership of the Prince Edward Theatre along with several additional theatres throughout the UK.

After merging with Thorn Electrical Industries, EMI divested part of its leisure holdings to Trust House Forte in November 1980 for £16 million; Lord Delfont was appointed chairman and CEO of THF’s leisure division. Nonetheless, Thorn EMI retained control over the EMI Social Centres bingo halls. The Winter Gardens in Blackpool were sold off to First Leisure in 1983.

Hotels and Restaurants

In 1972, EMI Hotels acquired the Golden Egg group from the Kaye brothers for £14 million, outbidding Ralston Purina. This acquisition included a shareholding in Angus Steakhouse restaurants as well as ownership of the Selfridge Hotel, which opened its doors in July 1973. By June 1977, EMI had expanded its hotel portfolio to include London’s Tower Hotel. By late 1978, additional properties under EMI’s control comprised four more hotels: Royal Horseguards Hotel; Royal Angus; Royal Trafalgar; and Royal Westminster.

EMI’s restaurant portfolio featured brands such as Angus Steakhouse, Wimpy Bars, Picnic Basket, and Tennessee Pancake Houses. Following the merger with Thorn Electrical Industries, seven hotels along with twelve Angus Steakhouse outlets were sold in July 1980 for £23 million to Scottish & Newcastle Breweries.

EMI Music Publishing

In addition to its record label operations, the corporation owned EMI Music Publishing, recognized as the largest music publisher worldwide. For more than ten consecutive years, EMI Music Publishing received the Music Week Award for Publisher of the Year; in 2009, it notably shared this accolade with Universal Music Publishing Group for the first occasion. The publishing division functioned independently from the record label business.

EMI's publishing catalog encompassed rights to over 1.3 million compositions, featuring works from artists and catalogs such as Queen, Carole King, The Police, Motown, Kanye West, Alicia Keys, Drake, Sia, P!nk, Pharrell Williams, and Calvin Harris.

In 2012, a consortium led by Sony/ATV Music Publishing acquired EMI's music publishing assets. Following this transaction, BMG obtained the publishing catalogs of Virgin Music (formerly under EMI) and Famous Music UK (previously held by Sony/ATV).

Compact Disc Price Fixing

From 1995 through 2000, several leading music corporations, including EMI, were involved in unlawful arrangements such as minimum advertised pricing agreements designed to artificially elevate CD prices and limit discount competition from retailers like Best Buy and Target.

A settlement reached in 2002 included Sony Music, Warner Music, Bertelsmann Music Group, EMI, and Universal Music. This resulted in a $67.4 million penalty and the distribution of $75.7 million worth of CDs to public institutions and nonprofit organizations, with no admission of guilt. It was estimated that consumers paid nearly $500 million more than they should have, with overcharges reaching up to $5 per album.

In January 2013, EMI attracted criticism after it removed Martin Luther King Jr.'s "I Have a Dream" speech from Vimeo due to copyright enforcement coinciding with Internet Freedom Day.

External links

EMI