Radiohead, Pink Floyd Say Artists Should Get EMI Share

As it seems increasingly likely that the Universal Music Group will sell-off sections of EMI Music in order to get regulatory approval for their $1.9 billion purchase of the company, debate as to exactly where those divestments should end up is growing.

With indies arguing that it should go to smaller companies and Warner no doubt thinking that they want to keep on turns with the bigger Universal and Sony, the latest opinion comes from the Featured Artists' Coalition, a lobbying body for artists.

A recent letter from the FAC's co-chairs, Ed O'Brien from Radiohead, Nick Mason of Pink Floyd and Sandie Shaw, was published in the Financial Times this week read, "Divestments in the wake of mergers should first offer copyrights, at market rates, to the artists who created them."

They added, "To sell them to other corporations, whether large or small, is just a perpetuation of an old business model, which has seen the recorded music business halve in value over ten years. During that time, the technological revolution has displaced the old music business players. We do not need to repeat the mistakes of the past.

Both Radiohead and Pink Floyd have back catalogue material tied up in the EMI vaults (as the label proved when they somewhat cheekily released a Radiohead best of after they got out of their deal) and would be no doubt be interested in buying back those rights.

The Financial Times are also reporting that Universal's Chief Executive Lucian Grange is offering independent labels represented by European lobby group Impala a first-right opportunity to bid for EMI assets. He's even throwing in €15m as part of a finance plan to help them financial any such deals.

AMongst the assets offered are believed to be Chrysalis UK (bar Robbie Williams' rights), Ensign, Muse, Virgin Classics, Jazzland and Sanctuary.

Impala co-founder Patrick Zelnik told the paper that he, a support of the Universal-EMI deal, plans to resign from Impala as it had not 'respected its mission' and is eyeing off Virgin with Sir Richard Branson.

Branson said, "I have known Lucian for 30 years, he is a great record man and has committed to revitalise Virgin Records which has been mismanaged in the last 10 years. He and I feel it is now a 'sleeping beauty' which could become again an innovative and leading label.”

The FAC letter comes as Universal offer a larger number of divestments to the European Commission in order to get the deal green-lit. Earlier this week The Guardian reported that their first offer of divestments had been knocked back.

Universal have guaranteed the deal to EMI's controllers Citibank and are desperate to get regulatory clearance before they have to hand over money.