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[ Sony and BMG to Merge Music Units Into Joint Venture ]

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Old 11-06-2003, 07:42 AM   #1 of 32
Lee Scoggins
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Sony and BMG to Merge Music Units Into Joint Venture


http://online.wsj.com/public/us

I will try to find more details as additional stories cross the wire.





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Old 11-06-2003, 09:21 AM   #2 of 32
Lee Scoggins
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Here are some more details:

http://www.nypost.com/business/10084.htm





no fears alone at night she's sailing through the crowd
in her ears the phones are tight and the music's playing loud
~skateaway
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Old 11-06-2003, 09:24 AM   #3 of 32
Lee Scoggins
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Quote:
Time Warner is trying to sell its music assets to pay down debt, and if Time Warner CEO Dick Parsons believes he has little chance to get regulatory approval for an EMI deal, he could move toward selling the division to a private equity group headed by Edgar Bronfman Jr.


Very interesting....

And if Warner/EMI combine in some fashion (or try to depending on regulators) do we see the Beatles catalog on DVDA?

Then you have two big SACD parties and 2 big DVDA parties? and Universal on the fence with both?

lots of interesting possibilities...




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in her ears the phones are tight and the music's playing loud
~skateaway
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Old 11-06-2003, 10:13 AM   #4 of 32
David Coleman
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Yes this will be interesting to see how this shakes out in the DVDA and SACD releases??
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Old 11-06-2003, 10:39 AM   #5 of 32
Rachael B
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This, ultimately, is bad news. It's bad enough having 5 huge sloth-like companies dominating the music business, the spectre of having that power concentrated to fewer companies is bad for consumers, IMO. Regulators may take the same stance? Maybe not given the present adminestration?



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Old 11-06-2003, 10:48 AM   #6 of 32
Lee Scoggins
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Quote:
It's bad enough having 5 huge sloth-like companies dominating the music business, the spectre of having that power concentrated to fewer companies is bad for consumers, IMO.


You may very well be right, but it appears that no one's music division was making money and maybe the combination will ensure a better (at least financially) business model for music.

I thought about something else this morning:

Maybe this merger helps hirez by creating bigger support of both formats...? For instance, music alliances may add to profitability by rationalizing distribution lines and that may help free investment cash for hirez....also maybe a bigger company focusing on hirez titles leads to a more focused marketing effort and effort to do bigger name albums-ie. more clout for talking to artists/groups like the Beatles.

Just some food for thought...




no fears alone at night she's sailing through the crowd
in her ears the phones are tight and the music's playing loud
~skateaway
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Old 11-06-2003, 10:57 AM   #7 of 32
Lee Scoggins
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Some more details from Bloomberg:

http://quote.bloomberg.com/apps/news...7lFmk&refer=us

Interesting market share numbers at the bottom. Universal remains at #1 even after the merger.

Speculation that any Warner - EMI alliance will be scuttled due to regulation.




no fears alone at night she's sailing through the crowd
in her ears the phones are tight and the music's playing loud
~skateaway
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Old 11-06-2003, 12:11 PM   #8 of 32
Michael_T
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Quote:
Interesting market share numbers at the bottom. Universal remains at #1 even after the merger.


Not necessarily. Those numbers are for 2001 and 2002.

If you add the 2002 market share numbers, worldwide, for SONY and BMG, you get a number that is slightly larger than Universal's worldwide market share alone.

In the domestic US, it would seem that Universal may still hold on to the #1 share.
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Old 11-06-2003, 12:46 PM   #9 of 32
Lee Scoggins
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I was looking at the North America numbers.

But if you add BMG and Sony on a worldwide basis, you still have Universal at #1. 25.2 for BMG/Sony versus 25.9 for Universal.





no fears alone at night she's sailing through the crowd
in her ears the phones are tight and the music's playing loud
~skateaway
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Old 11-06-2003, 12:50 PM   #10 of 32
Peter Kline
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