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January 29, 2008

As a follow up to my post on silos (and how EMI can't and shouldn't do too much to bring some of the down), here's a quote from New Improved Plan Resonate Blog that comments on a Wall Street Journal article on EMI's restructuring. I couldn't agree more with this post:

Jim Fusili at WSJ makes a pivotal error by assuming that EMI’s stated commitment to A&R will benefit "music lovers." Fusili asserts that EMI’s "silo mentality" leads to the unnecessary segmentation of consumers.

This would be true if EMI were in the business of directly interacting with consumers. They’re not. The music industry relies heavily on distribution partners and, most importantly, retailers. ...

Retailers use segmentation and classification to help customers find what they’re looking for. Distributors, ad agencies, publicists, booking agents, old media outlets, and new ones alike use segmentation to deliver an attractive product. Segmentation is useful and desirable in a world where so many different dialects are spoken.

Many hip hop fans love classical music, and vice versa, yet they don’t want to have to dig through the Lil Mama to find their Liszt.

Label execs generally won’t pretend to have the same talents of a successful local record shop manager. Similarly, financiers shouldn’t pretend to have the same talents of an A&R rep."

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Posted by Glenn at 1:15 PM | | | EMI