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===Aftermath of demerger from Thorn=== Due to the increasing divergence of business models, Thorn EMI shareholders voted in favour of demerger proposals on 16 August 1996. The resulting media company was now known as EMI Group PLC.<ref>{{cite news|url=https://www.independent.co.uk/news/business/vote-solid-for-thorn-demerger-1310081.html|title=Vote solid for Thorn demerger|date=17 August 1996|access-date=25 October 2017|author-first1=Nigel|author-last1=Cope}}</ref> In 1997, EMI Records USA was folded into both Virgin and Capitol.<ref>{{cite news |date=21 June 1997 |title=EMI shutting 2 New York-based record labels |work=[[The New York Times]] |url=https://www.nytimes.com/1997/06/21/business/emi-shutting-2-new-york-based-record-labels.html}}</ref> Since the 1930s, the [[Pathé Records (China)|Pathé Records]] label headquartered in [[Shanghai]], China had been published under the EMI banner<ref name="Xinhuanet">Xinhuanet. "[http://news.xinhuanet.com/collection/2003-07/17/content_980098.htm Xinhuanet] {{webarchive|url=https://web.archive.org/web/20160304030545/http://news.xinhuanet.com/collection/2003-07/17/content_980098.htm |date=4 March 2016 }}." ''Baak Doi and the Old Records.'' Retrieved 21 April 2007.</ref> and since then, EMI had also been the dominant label in the [[cantopop]] market throughout [[Greater China]] until the genre's decline in the mid-1980s. Between the years 2004–2006, EMI then completely and totally divested itself from the [[c-pop]] market, and after that, all Hong Kong music artists previously associated with EMI had their music published by [[Gold Label]], a concern unaffiliated with EMI and with which EMI did not yet hold any interest. On 21 November 2000, [[Streamwaves]] and EMI signed a deal licensing EMI's catalogue in a digital format for their online streaming music service. This was the first time EMI had licensed any of its catalogue to a streaming music website.<ref>{{cite news|last=Rohde |first=Laura |title=EMI, Streamwaves to launch streaming music service |url=http://transcripts.cnn.com/2000/TECH/computing/11/21/emi.streamwaves.idg/index.html |archive-url=https://archive.today/20130119180630/http://transcripts.cnn.com/2000/TECH/computing/11/21/emi.streamwaves.idg/index.html |url-status=dead |archive-date=19 January 2013 |access-date=3 June 2009 |publisher=CNN|date=20 November 2000 }}</ref> Pop star [[Robbie Williams]] signed a six-album deal in 2002 paying him over £80 million ($157 million), which was not only the biggest recording contract in British music history at the time, but also the second biggest in music history<ref>{{cite news|first=Fiachra|last=Gibbons|title=Robbie Williams signs £80m deal|url=https://www.theguardian.com/uk/2002/oct/03/arts.artsnews|work=The Guardian |location=London|date=3 October 2002|access-date=17 March 2008 }}</ref> behind that of Michael Jackson. [[Apple Records]], the record label representing [[The Beatles]], launched a suit against EMI for non-payment of royalties on 15 December 2005. The suit alleged that EMI had withheld $50 million from the record label; however, an EMI spokesman noted that audits of record label accounts are not that unusual, confirming at least two hundred such audits performed on the label, but that these audits rarely result in legal action.<ref>{{cite news|title=Apple Records launches royalties lawsuit against EMI...again |url=https://www.cbc.ca/news/entertainment/apple-records-launches-royalties-lawsuit-against-emi-again-1.544360 |publisher=CBC News |date=16 December 2005 |access-date=17 March 2008 |url-status=live |archive-url=https://web.archive.org/web/20070520184218/http://www.cbc.ca/arts/story/2005/12/16/beatles-emi-lawsuit.html |archive-date=20 May 2007 }}</ref> A legal settlement was announced on 12 April 2007 and terms were undisclosed.<ref>{{cite news|title=Beatles settle EMI royalties row|url=http://news.bbc.co.uk/2/hi/entertainment/6548035.stm|publisher=BBC News|date=12 April 2007|access-date=17 March 2008}}</ref> On 2 April 2007, EMI announced it would be releasing its music in [[Digital rights management|DRM]]-free formats. These were to be issued in [[Advanced Audio Coding|AAC]] format, which gave higher quality for the same [[Bit rate|bitrate]] compared with the ubiquitous MP3 format. The music would be distributed via Apple's [[iTunes Store]] (under the iTunes Plus category).<ref>{{cite news|title=EMI Music launches DRM-free superior sound quality downloads across its entire digital repertoire|url=http://www.emigroup.com/Press/2007/press18.htm|publisher=EMI Group|date=2 April 2007|access-date=17 March 2008|archive-url=https://web.archive.org/web/20080302183415/http://www.emigroup.com/Press/2007/press18.htm|archive-date=2 March 2008}}</ref> Tracks were to cost $1.29/€1.29/£0.99. Legacy tracks with [[FairPlay]] DRM would still be available for $0.99/€0.99/£0.79 – albeit with lower quality sound and DRM restrictions still in place. Users would be able to 'upgrade' the EMI tracks that they had already bought for $0.30/€0.30/£0.20. Albums were also to be available at the same price as their lower quality, DRM counterparts and music videos from EMI would also be DRM-free. The higher-quality, DRM-free files became available worldwide on iTunes on 30 May 2007, and were expected to appear on other music download services soon thereafter. Following this decision, [[Universal Music Group]] also announced sales of DRM-free music (which was described as an experiment).<ref>{{cite web|last=Ogg|first=Erica|url=http://news.cnet.com/8301-17938_105-10074001-1.html|title=Dell PCs get pre-loaded with UMG DRM-free music|website=CNET|date=23 October 2008|access-date=13 August 2010}}</ref> In May 2006, EMI attempted to buy [[Warner Music Group]], which would have reduced the world's four largest record companies ([[Big four record labels|Big Four]]) to three; however, the bid was rejected.<ref>{{cite news|title=Warner Music throws out EMI bid|url=http://news.bbc.co.uk/1/hi/business/4968814.stm|publisher=BBC News|date=3 May 2006|access-date=17 March 2008}}</ref> Warner Music Group launched a [[Pac-Man defense]], offering to buy EMI. EMI rejected the $4.6 billion offer.<ref>{{cite news |title= EMI rejects $4.6bn Warner offer |url= https://www.independent.co.uk/news/business/news/emi-rejects-46bn-warner-offer-6096838.html |website= The Independent|location=London |access-date=3 October 2017}}</ref>
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