The document provides information about EMI Group and discusses their dividend policy decision. It includes: - An overview of the music industry and EMI Group's history as a major record label. - How the digital revolution negatively impacted the music industry and EMI's revenues, which decreased 27% from 2001-2006. - EMI's board considering maintaining their regular dividend of 8p per share or paying an extra 6p per share to maintain it, despite challenges in their core businesses. - Theories around dividend policy and their application to EMI's situation, finding they should reduce dividends to retain cash for investments due to declining prospects in the music industry.