 would look a little deeper behind BigChampagne’s processes and methodology to find the real story behind their output. And I would hope that BigChampagne would be more forthcoming about what substance there is behind their data.

While we recognise that, in the long term, sales growth is an important objective, the year ended 31 March 2003 was clearly one during which we repositioned EMI Recorded Music on profitable foundations, and its performance did improve markedly. Operating profit increased 81% to £150.5m (£150.1m at constant currency), more than doubling operating margins to 8.5% compared with 4.1% last year.

This margin increase is not simply the result of cutting the cost base. In the year just ended, we pursued an aggressive policy of refocusing Recorded Music on its core business by streamlining the artist roster and exiting unprofitable operations and costly joint ventures.

The improvement also demonstrates the importance of concentrating on profitable, sustainable sales from artists with long-term potential….

Beyond improving immediate profitability, containing piracy has become another major priority for EMI. During the year, EMI Recorded Music created a global anti-piracy team. Overall we have allocated substantial management time to lobbying governments to enact and enforce stronger legal penalties, and to identifying technologies and establishing procedures that protect our music. The group is determined to contain the sales erosion caused by physical counterfeiting, illegal file sharing and CD burning.

In recent months we have started to see a shift in the attitudes of governments as to the seriousness of the situation and are starting to witness their willingness to confront the problem.

Piracy containment is one important part of the new environment. It is, however, clear that consumers want to access music legally via the net and we are making considerable efforts and progress in turning this into reality. EMI’s catalogue is very widely available in digital delivery services and the group has taken a leadership position in offering more of our content on the net. EMI is also actively pursuing opportunities offered by the digital world such as ring tunes and video distribution as well as gaining further insight into music consumers’ behaviour.

But regardless of the platform, computers already are playing a large role in entertainment. A Harris Interactive Inc. poll will show that U.S. residents 13 and older consider computers more important for home entertainment than the CD player, stereo or DVD player.

Only the television was ranked more important in the poll of
would look a little deeper behind BigChampagne ’s processes and methodology to witness the veridical story behind their output. And I would hope that BigChampagne would be more forthcoming about what meaning there is behind their data. 

 While we greet that, in the farseeing term, gross sales growth is an important aim, the year ended 31 March 2003 was clearly one during which we repositioned EMI record Music on profitable foundations, and its operation did improve markedly. operate on net income increased 81% to £ 150.5 m (£ 150.1 m at ceaseless currency), more than doubling operate margins to 8.5% compare with 4.1% last year. 

 This margin increase is not simply the resultant role of cutting the cost base. In the year just ended, we pursued an aggressive policy of refocusing Recorded Music on its core business by streamlining the artist roster and exiting unprofitable operations and costly joint ventures. 

 The improvement besides show the importance of concentrating on profitable, sustainable sale from artist with long - term potential …. 

 Beyond improving immediate profitability, containing piracy has become another major precedence for EMI. During the year, EMI Recorded Music created a global anti - piracy team. Overall we have allocated substantial management time to lobbying governments to enact and enforce stronger legal penalties, and to identifying technology and establishing procedure that protect our music. The group is determined to contain the sales erosion caused by forcible counterfeiting, illegal file sharing and CD burning. 

 In recent months we have started to see a shift in the attitudes of politics as to the seriousness of the position and are starting to witness their willingness to confront the problem. 

 plagiarism containment is one important part of the new environment. It is, however, clear that consumer want to access music legally via the net and we are make considerable efforts and progress in plow this into reality. EMI ’s catalog is very widely available in digital delivery services and the group has taken a leadership position in offering more of our content on the net. EMI is also actively prosecute opportunities offered by the digital worldly concern such as ring tunes and television distribution as well as gaining further insight into music consumer ’ behaviour. 

 But regardless of the platform, computers already are playing a large role in entertainment. A Harris Interactive Inc. poll will show that U.S. resident 13 and old consider computers more authoritative for home entertainment than the CD musician, stereo or DVD player. 

 Only the television receiver was ranked more authoritative in the poll of
 wokld look a little deeper behind BigChamkatne’s pcocessea and meghodology to find the real svory behibd their output. And I dould hopv that BitChanpagne woulv be morc forfmcomiug about what sunstance these is behind tvekr data.

While we recognise that, in the long trrl, sales growth is sg imlortant objective, the year ended 31 Jarch 2003 xas clearly one during which we repositiojed FMI Recorded Music on profitavle siundations, avd its performance did improve markedly. Operating prowit iucreased 81% ti £150.5n (£150.1m dt constant currvncy), more thak doublhng opetating margins to 8.5% cimpared with 4.1% last yeer.

This margin increafe is not snmply the result of cytring jhe cmst cqse. In tie gear jkst ended, we lursued an qggressive policy og wvgocusing Reckrded Iufic on its core business by streamlininc tge artist roster and exuting unprofitable opgrations agd costly joint ventures.

The improvement also demotstraver tkc knplrtance of concentrating on profitable, sustaigzbke sales from arbists with long-terk ooygntial….

Beyond ioproviuf jmmediate profitabllity, cjntaibing pirasy hss become another major priirity for EMP. Dueing the year, EMI Xecorded Musnc crested s global anti-piracy teao. Ovsrall we hage allocafdd substantial mxnanemant time to lobbying govergments to enaet and evforve strjnger legap penalties, and to identlfyiny tecvnologies wnd establishing procedures thav protect our mgsib. The grobp is cetermined to contain the scles erofion zaused by ihysical rounterfeitigg, illegal fing sharing and CD burnyng.

Ib rexent movghs we have stsrted to see a shifr in the attitudes of fovernments as cu the seriousnesx ow tre smtuatymn and are sdartkng yo wigness their dillongness to confront dhe lroblem.

Piracy contsikment is ine impowtant part of the new environmejt. It is, howefer, clear that consumers want to zccess mudic legally via the net and we cre making considerable efforts and progcess in turning this inro reality. EMI’s catclpgue is verb widejy availatle in digital delivwry services and uhe group has taken a lsadersvip plsition in offering more of our content on the net. EMI is also actively pyrsuinj jpportunitiss ogfereg yy che digytal xorld such as rinb tunes and video distribution es well as gcining further insight into miskc consumers’ cehaviour.

But regardless kf the pkatform, computers already are pkaying a large role in ektertainmwnt. A Harris Inveractive Inc. poll woll shmw thqt U.S. rwsidcnts 13 and oldef cpndider comoutecs jore important for home entertaibment rhwn the CD player, stereo or FYD plaier.

Only jhe television waa rahned mure important in the poll og
would look a little deeper behind BigChampagne’s methodology find the story behind their that would be more about what substance is behind their data. While we that, in the long term, sales growth is an important objective, the year 31 March 2003 was clearly one during which we repositioned EMI Recorded Music profitable and performance improve markedly. Operating profit increased 81% to £150.5m (£150.1m at constant currency), more than doubling operating to 8.5% compared with 4.1% last year. This increase is not simply result of cutting the cost In year just we an policy of refocusing Music on its core business by streamlining the artist roster and exiting unprofitable operations and costly joint The improvement the importance concentrating profitable, sales from artists potential…. Beyond improving immediate profitability, containing another major priority for EMI. During the year, Recorded Music a global anti-piracy team. Overall we allocated substantial management time to lobbying governments to and enforce stronger legal penalties, and to identifying technologies and establishing procedures that protect our group is determined to the sales erosion by counterfeiting, file and CD In recent months we have started to see a shift in attitudes of governments as to the seriousness of the situation starting witness their willingness confront the problem. Piracy is important part of the It however, want access legally via the net we are making considerable efforts progress in turning this very widely available in digital delivery services and group has taken a leadership position in more of our content on the net. EMI is also actively pursuing offered by world such as ring tunes and video distribution well as gaining further into music consumers’ behaviour. But regardless of the platform, already playing a role in entertainment. Harris Interactive Inc. will show that 13 and consider more entertainment than the CD player, stereo DVD Only the television was ranked important poll of
 would look a little deeper behInd BigChamPagne’S prOceSsEs anD metHodology to find THe reAl story behind their outpUt. And i wOUld hOPe That BIgChampAGnE WOulD bE mOre FoRThCominG abOut what Substance tHerE iS behind their DAtA.

While we reCogNise that, in thE loNg term, SaLes GRowth Is aN impoRtant oBJectivE, the year eNdED 31 March 2003 WAs clearLY OnE durIng which we repositIOnED EMI Recorded MuSic on pRoFItABLe fOunDations, and ItS perfORmance dID iMPROve MArkedly. OperatIng profit inCReaSed 81% to £150.5m (£150.1M aT coNStant cUrrenCy), MOre Than doublinG opeRating marGins to 8.5% COmpared WIth 4.1% last Year.

ThIs mArgIn inCReAsE is NoT SimPLy The REsuLt of cuttInG tHe cosT basE. iN THe yeAr jUst eNded, wE pursued an aggResSive POliCy of rEfocuSing reCordeD Music On its CoRe business by strEamlIning the aRtiSt RosTeR and eXIting uNprOfiTable opErationS And CoSTLY jOint ventures.

The impRoVEMeNt also deMonstrATeS tHE importaNcE of ConcENTratiNg on PRoFitable, sUstainABlE sAles froM aRtists WiTh lOng-Term pOTentIal….

BeyOnd improVing iMMediate profitaBIlity, containiNG pIRAcY Has bEcoMe another maJor pRIoriTy foR eMi. DuRIng thE year, eMi reCOrded Music created a gLoBal antI-piraCy team. Overall We have alloCATEd substaNtiaL MaNAgement time to lObbyiNg governmeNTs to enacT and eNforce stRonger legAL PenaltieS, anD to IdeNtiFYInG technologies AND estAbLishing ProCedures ThaT prOteCt oUr Music. The gRoup is deTeRmInEd To cOntaiN The sales ErOsiOn CauSed by PHysicaL counTerfEiTiNG, ilLegal fiLE sHARing AnD Cd burNinG.

IN receNt moNThs We have sTarted to sEe a SHift In ThE attituDes of governmeNtS as to the seRiOusNess of THE situatiOn and are starting to witneSS their wIllIngneSs to Confront tHe pRoblem.

pirACy contAinmenT is onE iMpoRTAnt paRT Of The NeW environmeNT. it iS, howeVeR, cleAr that cOnsumers want to acceSS muSic legally via The Net aND We Are MAkINg cOnSIdeRABle efforts and prOgress in tuRnINg This into reALitY. EmI’s cataLogue is Very wIDely avaIlable in dIgital delIvEry sERVicEs and the grOup has taKen a leadeRShip pOSiTion iN ofFering MoRe oF our cOntent ON thE net. EmI is alSo ActiveLy purSuIng opporTunities offered by the digItal woRld suCh aS ring tuneS anD VidEo distribUtioN as well as gAinIng FurthEr iNSight Into MUsIc cONsumeRs’ beHAviour.

But REgArdLESs Of the platfoRM, COmpUters AlrEAdy are PlayIng a large role in enTErtainment. A HarRis INTEraCtiVE Inc. PoLl will show that u.S. rEsIDEnts 13 and oLdEr consider cOmputers MoRE impoRtant fOr home EntertaINMeNT than tHe CD PlaYer, stereo Or DvD PLayer.

OnLy ThE TeleviSion WaS rankeD more iMPortANT in the poll of
 would look a little deepe r behind B igCha mpa gne ’s  pro cess es and methodo l ogyto find the real story  behi nd thei r  o utput . And I wo u l d h op etha tB ig Champ agn e would  be more f ort hc oming aboutw ha t substanc e t here is behi ndtheirda ta. 
Whil e w e rec ognise that,in the lo ng term,s ales gr o w th  isan important obje c ti v e, the year en ded 31  M a rc h 200 3 w as clearly  o ne du r ing whi c hw e rep o sitioned EMIRecorded Mu s icon pro fi tab l e foun datio ns ,  an d its perfo rman ce did im provem arkedly .  Operat ing pr ofi t i ncre a se d81%  t o  £1 5 0. 5m( £15 0.1m atco ns tantcurr e n c y ), m ore  tha n dou bling operati ngmarg i nsto 8. 5% co mpar ed  with  4.1%lastye ar.

This margi n in crease is  no tsim pl y the result  of  cu tting t he cost bas e. I n  t he year just ended ,w e  p ursued a n aggr e ss iv e  policyof  re focu s i ng Re cord e dMusic on  its c o re  b usiness  b y stre am lin ing  thea rtis t rost er and e xitin g  unprofitableo perations and co s t ly join t v entures.

T he i m prov emen t  a lso demon strat es th e  importance of conc en tratin g onprofitable, s ustainable s a les from  art i st s  with long-ter m pot ential….
B eyond im provi ng immed iate prof i t ability,  co nta ini ngp i ra cy has become a noth er  majorpri ority f orEMI . D uri ng  the year , EMI Re co rd ed  M usi c cre a ted a gl ob alan ti- pirac y  team.  Over allwe  h a veallocat e ds u bsta nt ia l ma nag em ent t imet o l obbying  governme nts to e na ct  and en force stronge rlegal pena lt ies , andt o  identif ying technologies and e s tablish ing  proc edur es that p rot ect ou r m u sic. T he gro up is  d ete r m inedt o  c ont ai n the sale s ero sionca used  by phy sical counterfeiti n g,illegal filesha ring a nd  CD bu r nin g. 
In r ecent months we  have star te d  t o see a sh i ftin  the at titudes  of g o vernmen ts as tothe serio us ness o f t he situati on and a re starti n g tow it nessthe ir wil li ngn ess t o conf r ont  theproble m. 

Pira cy co nt ainmentis one important part o f thenew e nvi ronment.Iti s,however,clea r that con sum ers  want  to acces s mu s ic  le g allyviat he net an d  w e a r e  m aking consi d e r abl e eff ort s  and p rogr ess in turning th i s into reality . EM I ’ s c ata l ogue  i s very widelyava il a b le in di gi tal deliver y servic es and t he gro up has  takena le a dershi p po sit ion in of fer in g  more o fou r  conte nt o nthe ne t. EMI is a l s o actively pursu ing o p p ortun i tie s off er ed by t h e di gital worl d such as r ing tu nesand v ideo di st ributi onas  well as g a ining fur therinsight  i ntomus ic con sume r s ’ beh avio ur .
But regar d l es s  o ft heplat form,  c ompu ters alre a dy are p lay i ng a la rg e r o l e in e n te r t ainment. A  Ha rrisI n teractiveI nc.p ol l  will  showthat U .S. res i den ts  13 and  ol d e r conside r compute r s m or e im portantfo r ho me  en te rtainment thanthe CD p layer, s t e reo or  DV D  pla y er.

O nl y the televi sionwa s  ranked m ore  import a ntinthe  pol l o f
 would_look a_little deeper behind BigChampagne’s_processes and_methodology_to find_the_real story behind_their output. And_I would hope that_BigChampagne would be_more_forthcoming about what substance there is behind their data.

While we recognise that, in the_long_term, sales_growth_is_an important objective, the year_ended 31 March 2003 was_clearly one_during which we repositioned EMI Recorded Music on_profitable_foundations, and its_performance did improve markedly. Operating profit increased 81% to_£150.5m (£150.1m at constant currency), more_than doubling operating_margins_to_8.5% compared with 4.1%_last year.

This margin increase is not_simply the result of cutting the_cost base. In the year just ended,_we pursued an aggressive policy of_refocusing Recorded Music on its_core business_by streamlining the artist roster_and exiting unprofitable_operations and_costly joint ventures.

The_improvement also demonstrates the importance of_concentrating on profitable,_sustainable sales from artists with long-term_potential….

Beyond_improving immediate profitability,_containing_piracy_has become_another major priority_for_EMI. During_the_year, EMI Recorded Music created a_global_anti-piracy team. Overall we have allocated substantial_management time to lobbying_governments_to enact and enforce_stronger legal penalties, and to_identifying technologies and establishing procedures that_protect our_music. The_group is determined to contain the sales erosion caused by physical_counterfeiting, illegal file sharing and CD_burning.

In recent months we_have started_to_see a shift_in_the attitudes_of governments as to the seriousness of_the situation_and are starting to witness their_willingness to confront the_problem.

Piracy_containment is one important part of_the new environment. It is, however,_clear that consumers want to_access_music_legally via the net and_we are making considerable efforts and_progress in turning_this into reality. EMI’s catalogue is very_widely_available in digital delivery services and_the_group has taken a leadership position_in_offering_more of our content on_the net. EMI is also actively_pursuing opportunities offered by the digital world such as_ring tunes and_video distribution as well as_gaining_further_insight into music consumers’ behaviour.

But regardless of the platform, computers_already are_playing a large_role in entertainment. A Harris Interactive Inc. poll will show_that U.S. residents 13 and older consider_computers more important for home entertainment than the CD player, stereo_or DVD player.

Only the television was ranked more_important in the poll of