Faxon to ensure EMI stays in tune with changing market

EMI, the embattled music business owned by Terra Firma, has brought together its record label and publishing division under a single chief executive.

• Lily Allen is one of the artists on EMI's label who may benefit from the company's new focus on rights management

The company, which last year posted a 1.75 billion loss, has appointed Roger Faxon, head of its publishing operation since 2007, as group chief executive as it seeks to overcome sliding music sales.

Changes to the way music fans access songs, plus the recession, have sparked concerns over the long-term financial future of the music industry.

EMI said yesterday that its restructuring – which unifies EMI Recorded Music and EMI Music Publishing – would allow it to better exploit opportunities in the market. The changes would reposition it as comprehensive rights management company, the company said.

"More music is being used than ever before, despite the continued decline in global music revenues," EMI said in a statement.

"As a result, the management structure of EMI is being changed to enable the company to reposition itself as a comprehensive rights management company that can take full advantage of all global opportunities in all markets for music."

While Faxon has been promoted to group chief executive, Charles Allen, who was previously chairman of EMI Recorded Music, will stay on as an adviser to EMI and Terra Firma, the private equity firm owned by Guy Hands.

Faxon said: "I believe that the two divisions working in concert with one another as a global rights management business, can and will deliver for the artists and songwriters that we are privileged to work with now and in the future."

The restructuring of EMI follows a 105 million cash injection from Terra Firma, which earlier this year faced the prospect of losing the music business to its lender, Citigroup.

Terra Firma bought EMI for 4.2bn in 2007 in a highly leveraged deal that is often held up as an example of pre-banking crisis buy-out excess. The deal was funded with 3.2bn from Citigroup. Last month's capital injection avoided EMI from breaching the terms of its loans for another year.

Faxon has been at EMI for 16 years and previously worked as executive vice-president and chief operating officer for George Lucas's film company, working on blockbusters such as Raiders of the Lost Ark.

Stephen Alexander, who has been a director of EMI holding company Maltby Capital for the last 18 months, will become Maltby's chairman, replacing John Birt, who will focus on acquisitions and strategy for Terra Firma and represent it on the board of renewable energy company Infinis.