EMI declines to play

It has looked for a while as if three of the four big music labels – Universal, Warner and Sony – were happily allied with YouTube, with EMI on the outside. The first three were all given a stake (InsideGoogle) in the site just before it was bought by Google, and appear to have negotiated lucrative licensing arrangements (CNet) with Google post-acquisition. EMI was not part of these arrangements. Now EMI has signalled its intent to stay outside the club, announcing a deal (Mashable) with minor YouTube competitor Gotuit.The probable net effect? Inconvenience for consumers, reduced exposure for EMI’s stable of artists, and a hastening of the inevitable end of the relationship between record labels and artists. Increasing the search and transaction costs for users looking for EMI artists is strategic myopia, with only one possible defence - here is very little else for the labels to do to help rather than hinder their artists that doesn't involve simply admitting their galloping obsolescence. There simply isn't a relevant place for a mass-marketing, physical production and physical distribution function in this digital marketing chain.