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"To meet rapid changes in demand for new platforms and new formats for offering music, we needed an organization that would help EMI’s Recorded Music business in North America become even more flexible, fluid and streamlined."
—— David Munns, EMI Recorded Music North America Chairman/CEO
EMI RESTRUCTURES DISTRIBUTION
Company to Split EMD Functions Into Two Groups
In a move designed to align EMI’s North American sales, distribution and marketing operations with the changing music marketplace, EMI Recorded Music North America is splitting its EMI Music Distribution unit into two groups, including a newly created marketing entity to be led by EMI Recorded Music North America Executive VP Phil Quartararo.

Physical distribution operations (pick, pack and ship) will now report directly to Ivan Gavin, COO of EMI Recorded Music North America.

The new marketing entity, to be called EMI Music Marketing (EMM) is being established as a central unit that will service three key groups: EMI’s North American labels, retail customers and ultimately consumers. The group is designed to develop new revenue streams, work more efficiently with EMI’s label marketing functions and serve key market segments in traditional retail and non-traditional channels.

The new unit, reporting to Quartararo, will target specialty markets such as sports and lifestyle, as well as areas focusing on licensing for soundtracks and synchronization. EMI Music Marketing will also encompass the company’s sales, catalog development and special markets efforts. In addition, EMM will include a new area focusing on the development of music DVDs from EMI’s artists.

"To meet rapid changes in demand for new platforms and new formats for offering music, we needed an organization that would help EMI’s Recorded Music business in North America become even more flexible, fluid and streamlined," said EMI Recorded Music North America Chairman/CEO David Munns. "EMM will allow us to move quickly and more responsively in meeting the music-buying community’s needs."

Quartararo added, "This move will make EMI a more marketing-oriented organization than ever before; one that allows us to better listen to and respond to what our customers and music consumers demand. EMI Music Marketing’s structure is designed to service the music market as it is today and where it’s going tomorrow. Our aim is to make music even more accessible in traditional outlets and also to get greater penetration into more non-traditional outlets. The concept of a multi-faceted, centralized marketing entity is not new, but this mechanism is."

In addition to overseeing EMI’s physical distribution operations, Gavin, who reports to Munns, will continue to oversee all of EMI Recorded Music North America’s business operations across the company.

As part of this transition, EMI has also announced new executive posts, effective immediately, for EMI Music Marketing, based in Los Angeles and reporting into Quartararo:

Ronn Werre, formerly Senior VP of Sales, will become Senior VP, Sales and Catalog Marketing at EMM.

Cynthia Sexton, formerly Senior VP, Strategic Marketing at EMI’s Virgin Records, will move to EMM to become Senior VP, Strategic Marketing, overseeing film licensing, soundtracks and film, TV and radio sychronization and working with all the company’s North American labels.

Jay Krugman becomes Senior VP DVD Product Development, a newly-created post, and will spearhead the development and marketing of DVDs from EMI’s current and catalog artists.

Lynne Leger, formerly VP, Retail Marketing, becomes VP of a newly-formed Consumer Research group.

Eli Okun will remain President, EMI Special Markets. Mike Mooney will remain the group’s Executive VP/CFO, and David Miller remains VP, Commercial Services.

In addition, Darren Stupak will be promoted to VP, Sales, reporting to Werre. He will oversee the company’s Major Account Group, and Vendor Managed Inventory processes.

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