IMPALA Will Oppose Sony/BMG Merger

[elektro80]

IMPALA and its members confirmed today that they will oppose the merger finalised this afternoon between Sony and BMG, making the following statement: 

"BMG and Sony claim that the merger 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".

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 attepted 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.

The independents will formally oppose the merger through IMPALA. 


http://www.mi2n.com/press.php3?press_nb=60474