Sony, Bertelsmann merging to form worlds largest music label
Posted on 09/11/03 01:52 by Dan Bell                             
Sony, Bertelsmann merging to form worlds largest music label

Quakester2000 andGristyMcFisty used our news submit to tell us the Register is reporting that Sony and Bertelsmann may well soon be able to merge their two music operations. With the result being a new, very large, music label.  Leaving Universal in the dust. Each partner has a 50 percent stake in the new joint venture, dubbed Sony BMG. All that they lack now is a blessing from US, European and other nations' regulatory authorities.

Precise terms of the merger - if it goes ahead - were not disclosed. However, both participants said the arrangement would not include their respective music publishing, distribution and manufacturing operations.

If the deal goes through, it will take the JV's global market share to 26 per cent - just ahead of the current market leader, Universal, which current has around 24 per cent of the market.

Sony and BMG have been in merger talks for some time. Right now, EMI and Time Warner are also discussing bringing their two music businesses together. If their talks go the way of Sony and BMG's, and they too gain regulatory approval, then the world will end up with three major labels and an almost perfect four-way split between them and the collected independent labels, which together account for around 25 per cent of the world music market.

It seems lately that we are living in a world of business implosions. Obvious cost cutting measures to remain competitive. Every year there are less and less companies out there. 

Source: theregister.com

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By Sherrif, Sun 9 Nov 2003 05:24
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this deal could very well shake up the american music industry, shifting the balance of power as these companies are not american owned and as such do not require the blessing of corporate america....... Imagine.. an outflow of contracts..revision of copyright and DRM laws...a fair and equitable deal worked out for both artists AND fans.....more importantly limiting the power of the RIAA back to where it should be (internal USA)..........or mebbe just another BIGGER monopoly......... I'm pretty sure they would have Frances blessing hehe.........cool
By Bane, Sun 9 Nov 2003 14:34
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Sherrif, you're kidding yourself. Big business is big business. RIAA does not represent US only music companies, but all of the big record lables, regardless of whether they're US or not. I hope you don't think that the RIAA doesn't currently represent Sony and Bertelsmann. Personally, I dont' think the RIAA is the problem, I think the record companies themselves are the problem. I think there's alot of collusion (either directly or indirectly) by the record lables regarding how they negotiate artists' contracts. The RIAA is just the enforcement organization setup by the record companies to enforce copyrights.
By Sherrif, Sun 9 Nov 2003 14:52
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Well Bane ..ya got me...what I know about big business you could scratch on a pinhead in capital letters....I live in a country where the little corner store, with personality, has been ground under the heel of foreign owned corporations, who set up a chain, employ the natives and then have the temerity to try and pass themselves off as that little, locally owned family store and all the profits stay here....what a load of cockswallow.... In that little corner store they knew me by name..to the corporations I'm just a number.......I hate them, but I love it when they infight and slowly destroy themselves.......Hey!.. I like money as much as the next person...but I don't worship it.....I measure my wealth in beer coupons.......and before you say , well your supporting big corporations....I can make my own........(did I stay on track here...cashed in lotsa coupons today..^_^)..........peace brother.........cool
By chsbiking, Sun 9 Nov 2003 14:57
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On my deathbed I will still remember the term cockswallow. Thanks to Sherrif.
[edited by chsbiking on 09.11.2003 14:58]
By cynicalbastard, Thu 13 Nov 2003 00:30
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hahah Smilie

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