“Universal Music Group has submitted a proposal to the European Commission to sell off major assets in exchange for regulatory approval for its proposed $1.9 billion acquisition of EMI Recorded Music…” and among these record labels potentially for sale is Parlophone Records, a label that represents Coldplay, the Chemical Brothers, Sigur Ros, Tinie Tempah, Chiddy Bang, etc. What does this mean for the music business? If Universal buys EMI, that will essentially create a super label, hence the reason why anti-trust law questions are being raised regarding the acquisition. EMI is also home to Astralwerks, which has big name EDM artists like David Guetta and Eric Prydz. Is the explosion of the dance music scene part of the reason why Universal is willing to shed 3 labels to acquire EMI?
A combined EMI-Universal record label would control close to 40% of the international recorded music market. But does that even matter when artists now have the ability to market to their fans direct?
“Also on the auction block are two classical music labels, EMI Classics and Virgin Classics, as well as EMI’s operations in France, Belgium, the Czech Republic, Poland, Portugal, Sweden and Norway.” – All the Classical European music artists combined probably are not raking in as much dough as Guetta makes on a weekend in Vegas.
“More than 20 potential bidders have stepped up, including BMG Rights Management, Sony Corp. and billionaire Richard Branson.” – read more on the subject on this LA Times article.
Where do you think the future of the music business is headed? Will EDM spearhead the way, or fizzle out and go back underground like it did in the ’90s?
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