Financial Times FT.com

EMI loses out on Disney distribution deal

By Joshua Chaffin in New York

Published: March 2 2008 22:08 | Last updated: March 3 2008 17:48

Walt Disney is handing the European distribution of its next Jonas Brothers album to Universal Music, according to people familiar with the matter, dealing a blow to EMI and its new private-equity owner, Guy Hands’ Terra Firma.

Disney’s decision, which is expected to be announced in London this week, will ratchet up pressure on EMI as it tries to retain a broader contract to distribute Disney’s records in foreign markets. That contract expires in about a year, and Disney has already been sounding out alternatives.

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