EMI is to start a cost savings plan

Profit prospects are poor as expansion within the music industry reaches saturation point and impact of the internet is felt

EMI Group's prospects for future profits growth look grim, according to Simon Baker, media analyst at Société Générale. Music mergers have reached a regulatory ceiling and the major industry players have been confined to acquiring small management intensive bolt-on companies in order to increase their artist roster, he said. This is not just a problem in the UK, Baker said, but is also affecting the global music scene. The top five music groups now control 75% of the industry. The principal markets in Western Europe and North America are now very mature and the industry has become v...