Guy Hands, the head of new EMI owner Terra Firma told the label's staff on Friday to "embrace digital or die" in a leaked memo.

Hands described Radiohead's self-release as "a wake-up call which we should all welcome and respond to with creativity and energy".  He also questioned the traditional label model where a few successful bands finance a multitude of bad A&R choices. "Why should they subsidize their label's new talent roster – or for that matter their record company's excessive expenditures and advances?" asked Hands.

According to the Telegraph, Hands is also said to have been surprised at the size of salaries paid to second-tier executives.

His solution?  A more venture capital like model where the label finances a release or tour in exchange for a percentage of profits.

Link (Via HypeBot)