EMI
March 1931 marked the birth of Electric and Musical Industries in London. Two giants, Columbia Graphophone Company and Gramophone Company, merged to form a vertically integrated entity. This new firm produced sound recordings alongside recording equipment. The merger brought together decades of engineering expertise from both predecessors. Their gramophone manufacturing success paved the way for larger-scale electronics projects. In 1934, an EMI research team led by Sir Isaac Shoenberg developed the electronic Marconi-EMI system for television broadcasting. This system replaced Baird's electro-mechanical approach following its introduction in 1936. After World War II, EMI resumed making broadcast equipment. They provided the BBC's second television transmitter at Sutton Coldfield. The company manufactured cameras used by British production companies and the BBC itself. The EMI 2001 colour television camera became the mainstay of much of the British television industry from the late 1960s until the early 1990s. Exports remained low before EMI left this area entirely.
Engineer Alan Blumlein received a patent for stereophonic sound in 1931. He died in 1942 during flight trials on an experimental H2S radar set. During and after World War II, EMI Laboratories in Hayes, Hillingdon developed radar equipment. This included receiver sections for the British Army's GL-II anti-aircraft fire-control radar. The labs also created microwave devices like the reflex klystron oscillator. These played a crucial role in developing early production types following the British Admiralty Signal School's pioneering NR89. The facility produced electro-optic devices such as infra-red image converters. Eventually they built guided missiles employing analogue computers. For many years, the company was internationally respected as a photomultiplier manufacturer. This business part transferred to Thorn as part of Thorn-EMI, then later became Electron Tubes Ltd.
The EMI Electronic Business Machine, a valve and magnetic drum memory computer, was built in the 1950s. It processed the British Motor Corporation payroll. In 1958, the EMIDEC 1100 became the UK's first commercially available all-transistor computer. Godfrey Hounsfield led development at EMI's Central Research Laboratories in Hayes. In the early 1970s, with financial support from the UK Department of Health and Social Security, Hounsfield developed the first CT scanner. This device revolutionized medical imaging. In 1973, EMI received a Queen's Award for Technological Innovation for what was called the EMI scanner. Hounsfield won the Nobel Prize in 1979 for his accomplishment. After brief success in medical imaging, manufacturing activities were sold off to other companies including Thorn.
In 1931, the year the company formed, it opened legendary recording studios at London's Abbey Road. During the 1930s and 1940s, its roster included Arturo Toscanini, Sir Edward Elgar, and Otto Klemperer. These artists represented prestigious British and European orchestras. The company appointed its first A&R managers during this period. George Martin later brought the Beatles into the EMI fold. When Gramophone merged with Columbia Graphophone Company in 1931, the new Anglo-American group became Electric & Musical Industries Limited. At that point, Radio Corporation of America held majority shareholding due to RCA purchasing Victor Talking Machine Company in 1929. Victor owned 50% of the British affiliated Gramophone Company, giving RCA chairman David Sarnoff a seat on the board.
EMI was forced to sell Columbia USA following anti-trust action by American competitors. By 1934, a much-diminished Columbia USA was purchased for just US$70,500 by ARC-BRC. This entity also acquired the OKeh label. RCA sold its stake in EMI in 1935 but retained North and South American rights to the His Master's Voice trademark. In 1938, ARC-Brunswick was taken over by CBS. CBS then operated Columbia as its flagship label in both the United States and Canada. EMI retained rights to the Columbia name in most other territories including the UK, Australia and New Zealand. It continued operating the label with moderate success until 1973 when it retired and replaced by the EMI Records imprint.
From the late 1950s to the early 1970s, the company enjoyed huge success under Sir Joseph Lockwood's management. The strong combination of EMI and subsidiary labels made it the best-known recording company globally. Stellar groups included the Hollies, the Shadows, the Beach Boys, and the Beatles. Hit solo performers included Frank Sinatra, Cliff Richard, and Nat King Cole. In 1967, while shifting focus on pop and rock music to Columbia and Parlophone, EMI converted HMV solely to a classical music label exclusively. For emerging progressive rock genre including Pink Floyd, who had debuted on Columbia, EMI established Harvest Records two years later. Over 150,000 78-rpm recordings from around the world are held in EMI's temperature-controlled archive in Hayes.
In 1964, EMI acquired Blackpool Tower from the Bickerstaffe family. Two years later they took over the Winter Gardens complex in Blackpool. In 1967, EMI acquired the Grade Organisation, the UK's largest showbusiness talent agency for £7.5 million. This purchase included the Shipman and King chain of 32 cinemas in the Home Counties. EMI Films was created in 1969 following acquisition of Associated British Picture Corporation. At that time ABPC owned 270 ABC Cinemas and half share in ITV contractor Thames Television. Elstree Studios at Shenley Road were also part of the deal. Bernard Delfont became chairman and Chief Executive. In 1970, Delfont sold his own Bernard Delfont Organisation to EMI before agencies were divested.
Their flagship cinema was the ABC 1 and 2 Shaftesbury Avenue built at the old Saville Theatre in London. In 1974, the Film & Theatre Corporation split into EMI Cinemas and EMI Leisure Enterprises. EMI Cinemas ran 272 cinemas in the UK including those of ABC. Following merger with Thorn Electrical Industries in 1979, film division renamed Thorn EMI Screen Entertainment. In April 1986, Thorn EMI sold its film production and distribution arm to businessman Alan Bond. Bond then sold it to The Cannon Group a week later.
EMI Leisure Enterprises formed in April 1974 controlled Blackpool Tower, 16 squash clubs, five bowling alleys, discotheques, and 23 licensed premises. It began developing new leisure businesses including Brighton Marina and golf activities with Aldenham Golf Club opening. In April 1977 they acquired Empire Ballroom and Cinema in Leicester Square. September 1977 saw acquisition of Bailey Leisure Services Limited renamed EMI Dancing. By late 1970s, leisure business contributed 15% of group revenues. In 1978, EMI acquired Prince Edward Theatre plus two other London theatres and venues across the UK. Following merger with Thorn, part of leisure interests sold to Trust House Forte in November 1980 for £16 million. Lord Delfont became chairman of THF's leisure division. Winter Gardens in Blackpool sold in 1983 to First Leisure.
After decline in British market share from 16% to 9%, announcement came that EMI sustained loss of £260 million in 2006/2007. In August 2007, Terra Firma Capital Partners acquired EMI for £4.2 billion. Following transition, several artists including Radiohead left EMI while Paul McCartney had departed ahead of takeover. Rolling Stones signed one-album deal with Interscope Records/Universal Music Group outside contract expiring February 2008. They then signed new long-term deal with Universal Music Group in July 2008.
Guy Hands, CEO of Terra Firma Capital Partners, arrived with restructuring plans to cut between 1,500 and 2,000 jobs. Plans aimed to reduce costs by £200 million annually. As result, UK chief executive Tony Wadsworth left after 25 years in January 2008. Cuts planned over year 2008 affecting up to third of 5,500 staff. Thirty Seconds to Mars tried exiting contract following layoffs and unpaid royalties prompting label lawsuit for $30 million citing breach of contract. Suit settled following defence based on Olivia de Havilland case decades before. Jared Leto explained California Appeals Court ruling that no service contract valid after seven years known as De Havilland Law.
In 2008, EMI withdrew from South-East Asian market entirely forcing large roster acts to search contracts elsewhere. Only region where EMI not operating was South-East Asia though label continued Hong Kong and Indonesia operations. Chinese and Taiwanese operation sold to Typhoon Group reformed as Gold Typhoon. Philippine branch renamed PolyEast Records joint venture between EMI and Pied Piper Records Corporation. Physical audio and video products distributed in South-East Asia by Warner Music Group since December 2008. Korean branch known as EMI Korea Limited had physical releases distributed by Warner Music Korea.
In February 2010, EMI Group reported pre-tax losses of £1.75 billion for year ended March 2009 including write-downs on music catalogue value. KPMG issued going concern warning regarding ability to remain solvent. Citigroup holding $4 billion debt took 100% ownership from Terra Firma Capital Partners on the 1st of February 2011. This wrote off £2.2 billion debt reducing load by 65%. Group put up for sale with final bids due the 5th of October 2011.
On the 12th of November 2011 announced EMI would sell recorded music operations to Universal Music Group for £1.2 billion ($1.9 billion). Music publishing operations sold to Sony/ATV Music Publishing for $2.2 billion. Competitors included Warner Music Group which made $2 billion bid. IMPALA said it would fight merger. In March 2012 European Union opened investigation into Universal's purchase asking rivals and consumer groups whether deal will result in higher prices and shut out competitors.
On the 21st of September 2012 sale approved both Europe and United States by European Commission and Federal Trade Commission respectively. European Commission approved condition merged company divest one third total operations to other companies proven track record. To comply, UMG divested V2 Records, Parlophone Records, Sanctuary Records, Chrysalis Records, Mute Records, EMI Classics, Virgin Classics, 2CD Originals Series and regional labels most of Europe. Labels operated separately under name Parlophone Label Group pending sale. Universal retained Beatles library moved to newly formed Calderstone Productions and Robbie Williams Chrysalis recordings moved Island Records label.
Universal Music Group completed acquisition the 28th of September 2012 followed worldwide compliance complete rebranding the 1st of April 2013. Compliance with European Commission conditions, the 22nd of December Universal sold Mute catalogue previously property EMI to German-based music rights company BMG. the 8th of February 2013 Warner Music Group signed agreement acquire Parlophone, Chrysalis Records, EMI Classics, Virgin Classics, 2CD Originals Series some regional labels across Europe for US$765 million (£487 million). Regulatory approval received the 15th of May. Universal retained former European labels Ireland, Italy, Netherlands, Germany, Switzerland, Austria, Hungary, Finland.
Former EMI Records Ltd renamed Parlophone Records Ltd in 2013 when Warner Music Group acquired Parlophone Music Group having rights old EMI Records catalogue. Australian and New Zealand EMI Columbia catalogues including John Farnham ceded to Universal Music Australia imprint EMI Recorded Music and Universal Music New Zealand respectively. Warner Music incorporated EMI Classics and Virgin Classics into Warner Classics unit absorbing rosters into revived Erato Records label.
On the 14th of November 2013 EMI Middle Eastern branch folded into Universal Music causing distribution Warner Music releases region moved to Universal Music. the 30th of June 2014 Universal re-established Taiwanese division with A-Mei, Rainie Yang Show Lo signing first to label. May 2016 independent company Blue Raincoat Music bought most Chrysalis British catalogue from Warner Music making Chrysalis independent again. Remainder of Chrysalis British catalogue Spandau Ballet Jethro Tull Ramones Proclaimers stayed Parlophone UK Rhino Entertainment United States. Ramones American back catalogue remained Island sister Geffen Records successor MCA Records previously distributed band releases Radioactive Records licensed Universal Music Enterprises.
Majority Chrysalis American catalogue remained Capitol Music Group parent Island Geffen sister Capitol Records currently distributed that label. Debbie Harry only Chrysalis album KooKoo divested by Capitol. European Chrysalis catalogue including Harry four albums plus rights ten artists not originally signed owned distributed Blue Raincoat. Number initial non-Chrysalis artists increased 11 adding former EMI artists Naked Eyes. Belinda Carlisle only Chrysalis album Woman & Man distribution rights outside US reverted CMG Virgin Records Carlisle former label second career.
On the 16th of June 2020 Universal rebranded Virgin EMI as EMI Records reopening iconic label named Rebecca Allen former president Decca Records new EMI president. UMG continued operate Virgin as imprint EMI. In 1957 to replace loss long-established licensing arrangements RCA Victor Columbia USA cut ties 1951, EMI entered American market acquiring 96% stock Capitol Records USA. In 1934 much-diminished Columbia USA purchased just US$70,500 ARC-BRC which also acquired OKeh label. Over 150,000 78-rpm recordings world held temperature-controlled archive Hayes some released CD since 2008 Honest Jon's Records.
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Common questions
When was Electric and Musical Industries founded in London?
Electric and Musical Industries was founded in March 1931. The company emerged from the merger of Columbia Graphophone Company and Gramophone Company to form a vertically integrated entity producing sound recordings and equipment.
Who developed the first CT scanner at EMI Central Research Laboratories?
Godfrey Hounsfield led the development of the first CT scanner at EMI's Central Research Laboratories in Hayes during the early 1970s. He received financial support from the UK Department of Health and Social Security for this project which won him the Nobel Prize in 1979.
What happened to EMI after Terra Firma Capital Partners acquired it in August 2007?
Terra Firma Capital Partners acquired EMI for £4.2 billion in August 2007. Guy Hands implemented restructuring plans that cut between 1,500 and 2,000 jobs and aimed to reduce costs by £200 million annually.
Which companies purchased EMI recorded music operations in 2012?
Universal Music Group purchased EMI recorded music operations for £1.2 billion on the 12th of November 2011 with final approval granted on the 28th of September 2012. Sony/ATV Music Publishing acquired EMI music publishing operations for $2.2 billion while Warner Music Group bought Parlophone Records and other labels.
When did Electric and Musical Industries open its Abbey Road studios?
Electric and Musical Industries opened legendary recording studios at London's Abbey Road in 1931. The year the company formed marked the beginning of these facilities which later hosted artists like the Beatles under George Martin.