Chrome Posted December 12, 2003 Report Share Posted December 12, 2003 Sony, Bertelsmann Sign Music Merger Deal Fri December 12, 2003 09:53 AM ET By Boris Groendahl BERLIN (Reuters) - German media company Bertelsmann and entertainment conglomerate Sony of Japan have agreed on a merger of their music units in the latest move to consolidate an industry grappling with a four-year crisis. The 50-50 joint venture, Sony BMG, would be the world's second-largest record label, combining the recorded music units of Bertelsmann's BMG and Sony Music, but excluding music publishing and CD production. "The foundation of a joint music venture with Sony is a clear proof of our commitment to the music business," said Bertelsmann Chief Executive Gunter Thielen in a statement. "The music business remains a core business for us." The creation of the joint venture, based in New York, should help cut costs as the industry grapples with weak retail sales, online file-sharing and fierce competition with other forms of entertainment. Sony BMG would combine the world's second-largest label Sony, which includes such artists as Beyonce Knowles and Bruce Springsteen, with the No. 5 contender, Bertelsmann's BMG, which is home to Britney Spears and Elvis Presley. The new label would rival market leader Universal Music's 25.9 percent share of global music sales, with a share of 25.2 percent based on 2002 sales. -------------------------------------------------------------------------- I don't know much about Sony Music ... do they own any significant jazz labels? I'm wondering if this will add to what the BMG Jazz Club offers in any way. Quote Link to comment Share on other sites More sharing options...
couw Posted December 12, 2003 Report Share Posted December 12, 2003 I don't know much about Sony Music ... do they own any significant jazz labels? Columbia & Legacy Quote Link to comment Share on other sites More sharing options...
Joe G Posted December 12, 2003 Report Share Posted December 12, 2003 "The foundation of a joint music venture with Sony is a clear proof of our commitment to the music business," said Bertelsmann Chief Executive Gunter Thielen in a statement. "The music business remains a core business for us." Does anyone else find this to be a rather odd statement? What exactly is he saying? He makes it sound as if there's some great purpose here, as if music will cease to exist if they don't do this merger. Why should we be impressed with this "committment" when their best known contributions to the music business, cited in the article, are Britney and Beyonce? I don't get it. Quote Link to comment Share on other sites More sharing options...
BruceH Posted December 12, 2003 Report Share Posted December 12, 2003 Eventually there'll be one international music company. (And everyone will hate it.) Quote Link to comment Share on other sites More sharing options...
JSngry Posted December 12, 2003 Report Share Posted December 12, 2003 Now we can get that Complete Ellington RCA/Columbia set. That'll be, what, 150 discs? Same with Armstrong. If there was going to be ANY interest in jazz by this new conglomorate, I'd be intrigued. The cross-pollinatioin between Columbia & RCA could make for somm dream sets of older music. Quote Link to comment Share on other sites More sharing options...
montg Posted December 13, 2003 Report Share Posted December 13, 2003 BMG's treatment of the Victor/Bluebird couldn't really be much worse, so perhaps this merger offers a little hope. Mosaic and Sony seem to have a decent relationship, so maybe it will carry over to the BMG vaults. I remember reading that EMI (who owns BN) was considering buying the Warner vaults. This merger may prod them. Quote Link to comment Share on other sites More sharing options...
Tjazz Posted December 13, 2003 Report Share Posted December 13, 2003 Doesn't seem like BMG and Sony should be allowed to merge. Where's the competition? Quote Link to comment Share on other sites More sharing options...
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