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Sony and BMG to Merge: Indies To Be Further Marginalised

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by Septic Clit
Artists: Halo, The Shining
And on the first day of Christmas, two of the biggest record companies in the world confirmed they will attempt to merge... The End is Nigh?

Like two big monsters who've watched several inspiring episodes of Transformers, Sony and BMG believe that their union is a "bold move to reinvent and revitalise the music business" which will "bring greater value to consumers" and mean that "artistic expression can thrive". This from the people who in recent years have been responsible for atrocities such as Good Charlotte, Kula Shaker, Halo, The Shining, Kasabian, and many more we don't care to mention who probably didn't get as far as releasing their second albums (or in some cases, second singles) anyway.

Quite rightly, Drowned in Sound is not alone in our fears over such a terrible conglomeration of corporations. IMPALA (impalasite.org), the international trade association devoted to representing the interests of independent record companies and publishers, have sent out a statement today, which reads:

We welcome all moves to reinvent and revitalise the music business and deliver more value to consumers but that will only be achieved through more competition not more concentration. It is equally difficult to see that artistic expression will thrive if we make it harder for the majority of music companies to compete.

The merger is a bold move to make it even more easy to control the marketplace by reducing competition, consumer value and choice.

Market conditions may have changed since the last time 2 majors attempted to merge in 2000 but already excessive levels of concentration, product homegenisation and other supply problems have had a large part to play and they won't be cured by further concentration.

The Commission would have to rewrite competition rules to get this deal through after its previous market assessment. That is simply not going to happen.

The independents are concerned about the negative impact that the merger will have across the whole value chain from record companies to publishers to artists, performers, employees, managers, retailers, composers, writers, collecting societies and of course consumers.

The last time 2 majors attempted to merge (EMI/Warner in 2000), the Commission concluded that the independents represent the more entrepreneurial part of the market. They felt that a merger would favour mainstream mass-market music, marginalise the independents and reduce the choice and diversity of music for consumers.

Universal Music is also expected to oppose the deal.

So, this may sound like a lot of fuss about nothing but when you consider how much this will marginalise all indie labels (and the indie acts on the major labels) and the creative people who sail in them and how much more corporate rock and personality-less pop will be tossed into the ether. If these mighty corporate towers do fall, they'll kill music, or what's left of it, altogether and we can't stand back as music fans and let that happen...

DiScuss: What can be done to kickstart the fight-back properly? Can anyone think of any good to come from this? In less than 100 words, can you describe a true alternative music world?


Sony and BMG to Merge: Indies To Be Further Marginalised

This is what Musicweek.com reported on Friday for anyone who wants anymore background info....


News

Sony BMG sign binding merger agreement
12 December 2003 - 14:27:19
Bertelsmann and Sony Corporation announced this afternoon that they have signed a binding agreement to push ahead with the proposed merger of their two respective record companies.

The announcement comes just five weeks after the two companies announced that they had signed a "non-binding letter of intent" on November 6.

In a statement issued at 2pm London-time (9am New York-time), the corporations said that the new company, which will be headquartered in New York, will be called Sony BMG and be 50% owned by Bertelsmann and 50% by Sony Music. The announcement also indicates that Sony's Japanese record company will be excluded from the deal.

As previously announced, the company will not include publishing interests, physical distribution or manufacturing. The board of directors of Sony BMG will also be made up of an equal number of representatives from Sony and Bertelsmann, with Rolf Schmidt Holtz as chairman of the board and Andrew Lack as chief executive officer. Lack will effectively run the company on a day-to-day basis, it is understood.

The next step for the two companies is to seek regulatory approval in the US and the European Union, although it is understood that first tentative steps have already been taken in this respect. A formal application is now expected to go to the EU in the next fortnight.


Sony and BMG to Merge: Indies To Be Further Marginalised

a true alternative music world? what the fuck's that mean?
does it not occur that without the mainstream the alternative doesn't exist?
regardless of what the major labels do, there will always be a true alternative (and I don't mean alternative as a lifestyle choice). buy your records from independent stores or over the internet or better still from bands themselves.
take chances on stuff you haven't heard. don't expect to be solely informed by the mainstream media. it really isn't that hard to hunt out the stuff marginalised by the larger part of society. just quit moaning about it! it really doesn't have to have any effect on the music you enjoy.

Re: Sony and BMG to Merge: Indies To Be Further Marginalised

Good point. The second you start talking about an "alternative music world" you're just turning into another industry-exploitable stereotype. "Alternative" is an ethos, not a market.

That said, this news still sucks. Thing is, a lot of these labels have their own token "indie / alternative" imprints because it's all becoming more marketable. Without going off on one about why, it's not hard to see that decent music is becoming increasingly isolated. This merger is just another step down that road.

Re: Sony and BMG to Merge: Indies To Be Further Marginalised

I also agree that this *alt-music* world is bollocks. The best music is mainstream anyway, becuase its good enough to emerge from the underworld. The cream always rises. I don't think the merger will affect the indie labels too much anyway.

Sony and BMG to Merge: Indies To Be Further Marginalised


The cream doesn't always rise. The Velvet Underground never sold shit. Pet Sounds didn't sell out on release. But yeah, another merger, another load of record company staff and band cuts, another load of profit for some cocke-snorting cunts... getting repetitive, isn't it?

Sony and BMG to Merge: Indies To Be Further Marginalised

To be fair, as long as there are music fans who like independent music, like (I reckon) a lot of the people on this website, music will never die.

Because there'll always be people wanting to start up little bands, playing gigs in pubs and getting people interested. They go round the country winning hearts, and before you know it there's a big following.

And there'll always be independent record labels like, for want of better examples, Rough Trade, Fierce Panda, Domino and co. Rough Trade have been around 25 years (yesno?) so they must have some ability to survive under pressure from the majors.

I don't think this is a good thing, any mergers between majors, but if it forces a backlash from the independent sector which causes at least a resurgence in this sector even if the majors survive in tact, then what is there to moan about.

Independent music will never die. Well, I 'ope not.

Sony and BMG to Merge: Indies To Be Further Marginalised

Can't see how they'll get it through the various national competition authorities... in fact not even sure why they're trying, as it has always failed when any of the five majors have tried any previous mergers. Worth noting that one of the next major movements (or should that be gimmick?) in politics seems to be toward de-centralisation. I wonder if corporate structures may follow such a prevailing wind and re-structure themselves into smaller relatively autonomous units... see... I think that while there are obvious economies of scale to merging companies, bureaucratic inefficiency and wastage are also hugely increased. I think the latter often appears to negate the former, but since it is an operational consideration, rather than something easily quantified in £, it isn't taken into account. I think the major label way of thinking is to either avoid marketplaces where there are ANY visible obstacles, because as companies they are unable to manoeuver around them... or to try and flatten and level those marketplaces, and while that perhaps works in the hugely over-saturated teeny pop sector, I don't think that way of operating has succeeded with bands, but it is bands who provide the back catalogues that keep a label afloat... they are the goldmine that provides a steady income and pays the rent. Over-orienting themselves around the fickle ups and downs of the centre ground has made major labels vulnerable. I doubt this merger will do anything to change that. Merging two back catalogues is all well and good, but unless future back catalogue is constantly being created, the new merged label will perform no better than its components.

Re: Sony and BMG to Merge: Indies To Be Further Ma

They will get it through the mergers commission this time because their market share will be less than that of Universal.

Will take a good six months/year at least mind...

Sony and BMG to Merge: Indies To Be Further Marginalised

Like the man said, without the mainstream, there is no alternative. The bigger the mainstream, the bigger the reaction against it. Sooner or later, someone is going to come along with the vision to start up something great.
And people will be that starved of something like it that they'll lap it up. We need a band, a person, a label that won't start sucking satan's pole at the mere mention of money.
Its time for a miracle man...

Sony and BMG to Merge: Indies To Be Further Marginalised

Excellent!

An even bigger machine to rage against - bring 'em on!!

Re: Sony and BMG to Merge: Indies To Be Further Ma

i'm sure poking your sister with a pin is fun; she whimpers, she squeals, you can get right up her nose and get a reaction. but what if your sister weighed 500lbs? she marches on towards you, her massive blubbery feet crashing down so hard it's almost deafening. once again you prick her with the pin, but she's so vast now that your efforts are rendered ineffectual, her thick fatty tissue protecting her like a shield. not so fun now eh? you scream, you punch, but you can't stop her advance, and under her feet you go as she smashes a hole through the living room wall and totals your dad's car*. YOU SEE WHAT I'M SAYING HERE?


*this is all assuming you have a sister of course.

Re: Sony and BMG to Merge: Indies To Be Further Ma

I *think* i catch your drift yes.

The point is that the size of the mainstream is irrelevant - indies thrive on providing a counterpoint to the soulless dross dumped on us by the likes of BMG and anything that forces the indies and their artists to beecome more vigilant and creative is a good thing.
I'm really fucking sick of the victim mentality that pervades the indies - its one thing to be an underdog, its quite another to sit yelping in the corner like a runt. We can't keep blaming the mainstream for the lack of an alternative. If indies and their artrists are good enough, if they are radical and creative and *angry* enough they will be heard. If they are content to sit and whinge about how fucking difficult things are, they will die and they will deserve to.

Oh Fuck!

This is getting horrific!
All my friends love good music - but they also Watch Popstars / Fameacademy and buy Justin timberlake/ the Strokes! The music industry is turning into some '1984' style corporate distopia.
The fact is - the mainstream media is the most important thing which decides what music we hear and are exposed to, and the average radio1 listening/nme-reading music fan is never gonna learn about new music when the media is gonna continue to be so reactionary.
We'll have 24 hours a day popstars tv soon - everyone will be lost in a heady land of post-ironic music loving and John Peel will get ill and die.
Maybe?!?

Sony and BMG to Merge: Indies To Be Further Marginalised

>In less than 100 words, can you describe a true alternative music world?

Micro-essay semi-sloganist rant... incoming....

Notions of alternative defined by what it is alternative compared to, mainstream (which) represents industrial structure that delivers product. Structured to limit agency of those informed by it. Mainstream eating, then spewing out 'alternative' ideologically & actually (buying little labels).

Market demands controlled by media, who mirror the demands of public. Independent model pushed to wayside, and truly subverted as never subject to demands of mass market. Bonus!

All music = product. All product delivery device of ideological content, reliant on notion of capitalism to recoup fiscal/physical/temporal investment.
No alternative unless system of exchange between author and listener destroyed in all forms
(impossible) and methods of delivery redefined (possible).

There'll never be a true alternative music world, even if we all majors, all media, all records ever made were destroyed. We'll have the memory of the system, and it will resonate eternally, like an out of tune guitar.

Just have to make the best of what we have,
which is pretty good, considering.

M x

P.s. 163 words. Killed ten minutes. Time for pills...

Sony and BMG to Merge: Indies To Be Further Marginalised

It seems those with the power become more distanced from the reality of the industry they work. There are many ways the record industry can be modified.

It needs to be a little more professional, there should be less patting each other on the backs and what's in it for me. Orgs such as Xfm and MTV should not be allowed to voice themselves as the saviours of indie music when they underhandedly work with the industry to control what we listen to.

I would like to see two things happen first:

1). More support to new acts. This is more websites, flyers, gigs, press, video playbacks, merch. So many bands send in video's to the likes of MTV2 and never hear yet we see the Foo's constantly. NME embarrass themselves with there coverage of the Stripes and Strokes. We too as fans can help so much more, you can see how support with merch etc helps the football clubs yet so many people take free CD's, only go to gigs if they can get guest list, don't buy the t-shirts. It might seem naff but we need to supply these new bands.

2). I'd like bands to be dealt with as small businesses, they can get a loan and finance everything themselves. It's risky and has obvious drawbacks such as size but soon enough specialist orgs would arrive to help with certain areas such as promotion. This would require a more professional approach but there's nothing wrong with that.

I'm stopping soz

Sony and BMG to Merge: Indies To Be Further Marginalised

On the other hand you've got Warner Music, who have been bought by an independent group of investors - making them, like EMI, technically an "indie". Rather than being a move to swallow up a larger percentage of the total market mergers like BMG/Sony and the indie-isation of other majors suggests the market for their product is actually shrinking and is of little commercial value to companies who make a lot more money on electrical goods and film.




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