EMI Sale In Peril? AIM Calls For UK Gov't Review; Warner Music Hires Anti-Trust

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Offline suesuzzfaithkeeper

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http://www.billboard.biz/bbbiz/industry/record-labels/emi-sale-in-peril-aim-calls-for-uk-gov-t-1005930152.story
EMI Sale In Peril? AIM Calls For UK Gov't Review; Warner Music Hires Anti-Trust Law Firm

January 19, 2012
By Richard Smirke, London

AIM, the U.K.'s Trade Association for the Independent Music Industry, has called on the British government to stop the break-up and sale of EMI.
 
 The association is asking its 800 member companies to send a pre-written letter to their local constituency Member of Parliament (MP) opposing the division and sale of the music major to Universal Music and Sony.
 
 Calling the independent music sector the "true and acknowledged creative force in the music industry," the draft letter urges MPs to review and oppose the sale of EMI's recorded music operations to Universal Music and EMI Music Publishing to Sony on the grounds that it will increase market distortion.
 
 "This move will undoubtedly concentrate the global music market still further into the hands of two dominant major companies - Universal and Sony," the letter states. "That itself is enough to demand that the U.K. Government looks closely at, and opposes the proposed sale of the only U.K. major music company to the remaining gigantic multinational, whose monopolistic position has already been a cause of market decline."
 
 The letter goes on to say that, "if the deals with Universal and Sony are allowed to go ahead Warner Music will effectively be relegated in size to a position where it can offer no real global competition, and the global music market will be in the control of just two huge companies -- one French and one Japanese."
 
 Referencing  IMPALA's  vocal  opposition to Universal/Sony's acquisition of EMI, as well as past European Commission investigations into competition regulations relating to the music industry, the letter goes on to state: "The basic principles of competition in cultural markets do not tolerate making either Sony or Universal more powerful."
 
 It also goes on to quote Martin Mills, chairman of the Beggars Group, which owns and distributes a number of high-performing independent labels, including XL, 4AD, Matador and Rough Trade. Mills describes Universal's acquisition of EMI's recorded-music operation as "breath-taking arrogance."
 
 "It's hard to imagine this acquisition being approved, given Universal's existing dominance in an over-concentrated market. Even greater dominance would be bad news for almost everyone involved in the art and business of music," Mills goes on to say.
 
 The letter concludes by urging U.K. MPs "to raise this issue in Parliament" and "that the likely effects of these proposed sales on competition, retail, consumer choice and the growth of monopolistic power in the music industry are fully examined… That outcome, we strongly believe, cannot include this break-up and sale of EMI as proposed."
 
 Further opposition to the proposed EMI sale could also be coming from Warner Music itself, which according to American legal blog the Legal Times, reports that the label has hired U.S. law firm Brownstein Hyatt Farber Schreck to lobby against the merger. According to the Legal Times Blog, Warner Music, which itself unsuccessfully bid for EMI's recorded music division, is looking to contest the Universal/EMI deal on anti-trust grounds. The firm recently worked on behalf of the Dish Network in contesting the proposed AT&T - T-Mobile USA merger.

TAGS: Record Labels , Global , Legal & Management , Indies
huggs n love n faith to all
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Offline voiceforthesilent

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Thank you for sharing this with us. I admit that it's over my head with legalities but what I don't understand is that the people that are calling foul are in the same business. Isn't that conflict of interest?

I do understand not wanting a monopoly on a service or product and with Sony and Universal it would become even more powerful in the music industry. However, aren't they already? Also, if the sale of this is blocked just who is going to have the cash to be able to buy it - my guess is that it's someone who is "opposing" the sale to Sony and Universal. That doesn't seem right either.

I do agree that small business struggles to keep up with the big dogs but should the bigger corporations be cut off from doing good business because smaller businesses haven't caught up or fared so well?

I guess the only way I would see this as being fair (if they blocked the sale) is if the ones opposing could not buy it. And if no other offers come forward for the amount that Sony and Universal offered it should go to the ones that are able to pay the price.

Again, I don't understand how it all works and I could be off base, but if one of the smaller companies has a "Michael Jackson" signed under them then they are going to quickly profit. It's about the talent they sign that makes them profitable or not. Right?

Blessings.
« Last Edit: January 19, 2012, 03:25:00 PM by voiceforthesilent »
I'm proud to be a child of God and a member of MJ's Army of L.O.V.E.
 
"Press coverage of my life is like [watching] a fictitious movie...like watching science fiction. It's not true." ~Michael Jackson (2005)

"You should not believe everything you read. You are missing the most important revelations". Craig Harvey 3-15-2012

Offline Tink

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Look at it this way: Monopolies are unfair business, because they not only control everything, but...it's worse than you can imagine.

With that kind of power, they can literally LOCKOUT somebody with a beautiful voice, simply based upon looks. No Susan Boyles,
with voices like angels!

No new people, no potential "new Michael or Michelle Jacksons" because they're the wrong color!

Monopolies tend to be Discriminatory, and racist.

Now, tell me - do you want all your music manufactured on Vocaloid, and sung by a 3D character on a 3D screen, and no real person
to love? Because that's already happening in Japan!!  pale/

People are precious, our #1 Commodity in music. And these huge conglomerates need to NEVER forget that,
Why most of us would prefer EMI to stay with smaller corporations, instead of being swallowed whole and forgotten.
Black & Proud! I'm like the Oracle/Batgirl, who helps Batman in the comic books. I believe in "Comic Book justice."


Offline Grace

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OK, so almost 4 months after the deal somebody raises the finger being concerned?  smiley_spider

It is Sony/ATV with Martin Bandier doing half a management buyout of the EMI catalog controlling the second largest catalog on this planet if the deal gets through.
I don't like that Blackstone Group, Mubadala and USB are said to be involved in financing the deal for Sony/ATV.
http://www.reuters.com/article/2011/10/27/emi-idUSN1E79J1J320111027

The owner of Hilton, an AE state fund and one of the big Swiss banks involved in international tax fraud do not give me the vibes that this is not dubious money going into rights ownership.
Create your day. Create the most astounding year of your life. Be the change you want to see in the world! L.O.V.E.
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Offline voiceforthesilent

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I was really excited for Michael to have this under Sony/ATV but I'm growing increasingly concerned that the ones making this deal are not being totally honest in their transactions. I guess it's another wait and see for me.

Blessings
I'm proud to be a child of God and a member of MJ's Army of L.O.V.E.
 
"Press coverage of my life is like [watching] a fictitious movie...like watching science fiction. It's not true." ~Michael Jackson (2005)

"You should not believe everything you read. You are missing the most important revelations". Craig Harvey 3-15-2012

 

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