EMI Merges With...(Insert Name Here)
It’s been an interesting couple of weeks for the record industry as the decline of sales continues to force shifts in the market.
By Celia Hirschman • • 4m ListenVirgin Records announced the closure of stores in Chicago and Salt Lake City. Caroline Distribution lost its regional sales staff, and Navarre Distribution sold their music interests to their competitor, Koch. Rhino Records and Warner Music both suffered double digit layoffs and The Source, the hip hop magazine, filed for Chapter 11.
EMI Records, who is accepting offers to be sold. EMI is the smallest of the four international conglomerates in the record business today, representing the catalog of Capitol, Virgin and Blue Note. The real jewel in the crown is still the Fab Four. Over forty years later, the Beatles catalog is still the hottest catalog in the record business. Since The Beatles download rights have not yet been granted, whoever takes over the EMI catalog stands to make a fortune, unless they overpay.
proposal to sell to the private equity company Terra Firma. In addition, several other bids to buy EMI have recently been received and speculation now runs high that the Warner Music Group will make a bid, as they have done unsuccessfully in the past.
evidence from the independent trade organization Impala. Impala argued that without strict controls, a merger between giant labels could easily limit the growth of the indy music sector, forcing many labels out of business. Independent music is considered the lifeblood of the European music business. Since the annulment decision, the European Trade Commission has held hearings for Impala, Sony and BMG to defend their positions. The European Trade Commission has not given its final ruling yet, and Sony & BMG have been forced to put future plans on hold.