Don't Update, Consolidate!

Warner Music Group got its way. It gets to merge with EMI, bringing the famous "Big Four" down to the "Big Three;" even less selection and even less competition. That is probably why IMPALA, The Independent Music Companies Association, took issue with the merger and did not want to support the acquisition before the European Commission and other regulator authorities.

But alas, IMPALA and WMG have reached an agreement, be it vague. IMPALA will support the Warner/EMI merger and WMG will have to implement measures to increase and ensure competition. The Music Industry News Network reports the measures as the following:

1. behavioral undertakings to ensure competition and broad licensing;

2. recorded music divestitures to reduce market share and enhance the competitive scale of the independent music sector; and

3. substantial assistance to build the capacity of the independent music sector through industry bodies and the recently announced Merlin initiative, all of which are crucial to the independent music sector and which give independents full and fair market access, especially to the vital digital business.

It sounds a little, let's say less than strong, but consolidation seems to be the fad these days. Jerry DelColliano's INSIDE MUSIC MEDIA suggests that merging really isn't the direction these labels need to be headed. He points to Clear Channel as the example, as they were given permission to own and run almost every relevant radio station in existence and they recently chose to break up.

Consolidation actually didn't help radio become viable again, and it probably won't serve record labels any better, but WMG now has the legal backing to go and find out.