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Gl: Whar doe3 thol meon<br />
flnonciolly?<br />
Dovid Fine: We expect soles to be<br />
ot record levels in 1990, wilh<br />
commensurote profits even ofter<br />
obsorbing the integrotion cosis of<br />
ocquisitions.<br />
Gl3 Whot ore the moior<br />
chollenges for the future?<br />
Dovid Fine: We hove built our<br />
business lo ihis poinl from o Europeon<br />
bose, ond ore proud of our origins.<br />
The opportuniiy for the future,<br />
however, is to increose our U.S.<br />
presence which now only represents<br />
obout 15% o{ our revenue, bui over<br />
300/o of the world's recorded music<br />
business. We must build our U.S.<br />
business ond by doing so, provide U.S.<br />
repertoire for PolyGrom worldwide.<br />
Bruce Mockenzie: Looking ot it<br />
from o nolionol perspeciive, mony of<br />
our morkets outside of the U.S. qre<br />
foirly moture ones in which we<br />
olreody hove significonl shores. ln<br />
ihose countries, we need ro build<br />
morkel shore by ocquisition, the<br />
introduction of new ortisls ond<br />
reperloire, or by growing the<br />
oudience for our producl. ltoly, Spoin<br />
ond Austrolio in porticulor stond out<br />
os torgets of opportunity. We olso<br />
hove the polentiol to grow in morkets<br />
of culiurol offinily, such os oll of<br />
Europe for Europeon orlists, or Spoin<br />
ond Lotin Americo for Sponishspeoking<br />
ortists.<br />
Glr lhe world hos undergone<br />
drqmotic politicol chonge in<br />
1989 in Edstern Europe, Do<br />
lh€se chonges presenl<br />
opportunities fo. Polycrom?<br />
Bruce Mockenzie: Eostern Europe<br />
is experiencing unporolleled chonge,<br />
ond PolyGrom is the best positioned,<br />
becouse of iis long hisrory of selling<br />
ond recording there, to benefit over<br />
lime os lhe Eostern Europeon<br />
economies develop.<br />
Q! Whqt strotegies ore in<br />
ploce to ottock the chollenges<br />
of I99O ond beyond?<br />
Aloin L6vy: ln the short term, we<br />
hove progrommes underwoy lo<br />
integrote lslond ond A&M inio the<br />
PolyGrom Group ond io reorgonise<br />
our U.S. business for moximum<br />
ef f iciency, growth ond prof itobility.<br />
Tim Horrold: And in South Eost<br />
Asio we hove olreody mode<br />
oggressive moves in Toiwon ond<br />
Koreo to open new componies there.<br />
ln our clossicol business, we ore toking<br />
lhe long-term view, working hord lo<br />
ideniify young emerging orlists ond<br />
sign them for o long-term coreer.We<br />
olso hove slrolegies lo help us grow<br />
in developing morkels, os well os lo<br />
ensure thoi PolyGrom's clossicol ortists<br />
ond repertoire will be port of the<br />
oudio-visuol future, be ii on on oplicol<br />
disc, video cossetle or ony other<br />
corrier.<br />
Michoel Kuhn: ln the oudio-visuol<br />
oreo, we hove releosed extensive<br />
music video repertoire on VHS ond<br />
CDV We ore enlorging our morkets os<br />
CDV hordwore goins occeptonce. CD<br />
lnieroclive softwore is well olong on<br />
its development leorning curve, ond<br />
is scheduled to be lounched in the<br />
consumer morkel in 1991.We hove<br />
reslruclured our music video<br />
business to integrote it wiih our core<br />
recorded music businesses. And we<br />
hove entered inlo ioinl ventures to<br />
produce ond morket specific film<br />
ond television produci.<br />
Gl: ln facing these chollenges,<br />
is PolyGrom unique from its<br />
comPelilion?<br />
Bruce Mockenzie: PolyGrom is<br />
unique, os Michoel Kuhn soid, in thot<br />
we ore o "pure ploy" music<br />
compony. We ore olso unique os o<br />
Europeon-bosed globol recording<br />
group composed of very slrong<br />
notionol componies, eoch wiih their<br />
own orlists ond repertoire, which<br />
they morket iogether wilh our<br />
internotionolly occloimed clossicol<br />
ond populor recordings.<br />
Q: Looking oheod, whot is<br />
PolyGrom's vision for the<br />
fufure?<br />
Dovid Fine: Looking to 1995, we<br />
woni lo remoin focused on the<br />
populor ond clossicol music business,<br />
bul we will expond our scope to
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