The Universal Music Group, which is the biggest market-share holder in UK music, has announced it has reached an agreement to acquire the V2 Music Group from its current owners Morgan Stanley. Terms of the deal have not been disclosed, but speculation suggests the deal is worth in the region of £7m.
"V2 is recognized as a pioneer in independent music with a diverse artist roster that spans many musical genres," said Lucian Grainge. Grainge, who is Universal’s chairman and CEO, and pretty much owns your ass, is already in charge of such labels as Island, Polydor and Lizard King (home of the Killers). Whilst stamping on a small child’s toy and laughing megalomaniacally as he stroked his white cat, he added: "By applying our expertise in artist development and in the digital space, we'll be able to maximize and enhance the opportunities for its artists even further."
The bit that may interest you, young indie hero, is that as well as now playing human chess with V2's roster which includes the interminable likes of Stereophonics, Paul Weller, Anais, Isabelle Boulay and Henri Salvador, Universal now owns and operates the licensing organization Co-Operative Music. Resultantly, the music group will have a say over the umbrella operation that includes such independent labels as Bella Union, City Slang and Wichita Recordings. Co-Op is in charge of distributing and marketing these label’s artists throughout its worldwide network of labels.
V2 was founded by capitalist hippy Richard Branson in 1996 as he sought a return to the music industry following his sale of Virgin Music in the eighties, but large investment firm, Morgan Stanley, which provided financing for the company, ultimately wound up owning a 95% stake in the label.
Earlier this year, V2 sold off its North American operation which housed the likes of The White Stripes. The company stated that it was going to concentrate on exploiting its back catalogue and digital operation. Basically, it was losing money faster than a bank with its back door open.
Record companies: not worth shit these days.
Im all for it..
if it means the Sterophonics get dropped/Aids
it's more likely
than the smaller bands will get dropped and mor emoney will be put on the Stereophonics...
Funny that
Paul oceancolour Weller was distibuted through Universal, then v2 now Universal again.Im trying to think who this happened to ages ago....Oh yeah, Rialto.Not same companies though
Universal doing stuff to Bella Union
Not nice im sure, hopefully they ca stave off or at least recognsie bella union are clever enough to make alternative music without any fiddling around.if that happens then maybe it would be a bit beneficial.
that's
nice thinking... we shall see. why can't people just manage on their own these days?!
best newspiece for ages
nice one gareth :D
Doug Morris
is the chairman & CEO of Universal Music Group, Lucien is the chairman of Universal Music International and is nowhere near as 'evil' as you make out. He's quite an affable fellow.
Doug is scary though. In a "we're bigger than iTunes rarrrgh!" type way.
V2 were in a bad way domestically too, so this is interesting news, they might have some money to spend on artists now.
Also: I hopE Co-Op continues as it does a lot of UK labels a world of good on the continent. A WORLD.
A whole world's good,
in just one continent! They've definitely got their shit together.
Development
It's just weird to try to accomodate "...By applying our expertise in artist development ..." with a modern major label. They just don't DO that shit any more.
I'm no fan of the Stereophonics, but the way V2 broke them (by rigorously touring the band for two years) was a great way of developing them and getting them a solid fanbase. Somehow I can't imagine that Universal are going to have two years of belief for a new artist.
i've often wondered
would it be possible NOW to set up a not-for-profit record label? i suspect you'd be hit by a major-label smear campaign among other things. would be nice to try though. that way, if it dies, it literally WILL be the final nail in the coffin for music, but a win for the music "business" (a hateful phrase if ever there was one)
....
would it be possible NOW to set up a not for profit record label?
yes. there's fucking loads and loads and loads and loads and loads of them. probably more than there ever has been i reckon - ok, so the big ones have been snapped up by the majors, but DIY isn't suddenly going to stop just cos one more indie disappeared.
How would that work?
Is a not for profit record label the same as a DIY label? I cant work it out.
These pricks deserve to fail
I've made an album for £1600.00, its perfectly feasable than my record stands up against anything. But you need the money in PR/Press,pluggers promotion etc.
I'm sure its easy enough to sign more bands for smaller advances and do something genuinely interesting and sustainable than keep on signing all these "soft rock nonces".
im pretty sure
elbow, amusement parks on fire, hundred reasons, blood brothers are all on V2
They all indeed are,
yes
Blood Bros
are on Wichita no?
But isn't Wichita...
licened by V2?
...
As long as they keep writing Elbow big fat cheques - bovvered?
+
http://www.drownedinsound.com/label/view/121
yeah but
they won't. well-known band like Elbow who don't sell masses of records, first for the chop, do you not think?
time to shed a tear for semifinalists, then.
let's start an indie bidding war for their next record!
Poor Hundred Reasons/Yourcodenameis:milo
After just leaving a major, they're now back on one. In the latters case i think its the same label.
mmm
£7 million pounds for V2 ? That's pocket money. literally loose change....