Labels are starting to see the money saving advantage of online marketing and by the end of the year, it appears that a majority of the marketing budgets will focus on internet marketing. Online marketing is quite possibly the most cost effective way to promote artists and major labels have been slow to fully grasp the concept. What does this mean for magazines, newspapers and other media? Time will tell..
According to several newspapers, over 1000 people will loose their jobs at EMI worldwide when Terra Firma’s Guy Hands announces restructuring plans for EMI on Tuesday. Other cost cutting measures will also be put into effect. The firm wants to reduce costs across the board but in artist-and-repertoire and marketing they want to cut expenses by $58 million by using social networks and user-generated Web sites like MySpace to discover and promote talent. Several EMI artists are refusing to release new product until the label’s plans become clear. Hands is apparently reveling his future plans to staff, artists and managers simultaneously.