UMG/EMI

Trying to Make it in Music? Why Artists Should Oppose the UMG-EMI Merger

By Justin Kaufman  | June 26, 2012

It is hard enough to land a job in a profession that accepts applications. So imagine chasing a career that depends on getting discovered. This is the reality for artists who aspire to sign a record deal with a major label. The four major record labels – Sony, EMI, Warner, and Universal (or UMG) – do not typically accept unsolicited submissions from artists. And to make matters worse, if UMG is successful in its bid to acquire EMI, artists could face an even steeper climb to success.



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It is hard enough to land a job in a profession that accepts applications. So imagine chasing a career that depends on getting discovered. This is the reality for artists who aspire to sign a record deal with a major label. The four major record labels – Sony, EMI, Warner, and Universal (or UMG) – do not typically accept unsolicited submissions from artists. And to make matters worse, if UMG is successful in its bid to acquire EMI, artists could face an even steeper climb to success.

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It is hard enough to land a job in a profession that accepts applications. So imagine chasing a career that depends on getting discovered. This is the reality for artists who aspire to sign a record deal with a major label. The four major record labels – Sony, EMI, Warner, and Universal (or UMG) – do not typically accept unsolicited submissions from artists. And to make matters worse, if UMG is successful in its bid to acquire EMI, artists could face an even steeper climb to success.

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It is hard enough to land a job in a profession that accepts applications. So imagine chasing a career that depends on getting discovered. This is the reality for artists who aspire to sign a record deal with a major label. The four major record labels – Sony, EMI, Warner, and Universal (or UMG) – do not typically accept unsolicited submissions from artists. And to make matters worse, if UMG is successful in its bid to acquire EMI, artists could face an even steeper climb to success.

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Public Knowledge Testifies Against the Universal/EMI Merger

By Carrie Ellen Sager  | June 22, 2012

Yesterday I watched PK President and CEO Gigi Sohn, among others, testify in front of the Senate Judiciary Committee Subcommittee on Antitrust, Competition Policy and Consumer Rights in a hearing on “The Universal Music Group/EMI Merger and the Future of Online Music.” Seeing the hearing in person was itself an achievement, as the line was already down the hall and around the corner an hour and a half before the scheduled start. Obviously, this is a subject people are interested in. PK, in particular, is concerned that allowing the largest record company to absorb the fourth largest would create a “super-major” label that would have too much control over methods of distribution and would harm consumer access to music.



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Yesterday I watched PK President and CEO Gigi Sohn, among others, testify in front of the Senate Judiciary Committee Subcommittee on Antitrust, Competition Policy and Consumer Rights in a hearing on “The Universal Music Group/EMI Merger and the Future of Online Music.” Seeing the hearing in person was itself an achievement, as the line was already down the hall and around the corner an hour and a half before the scheduled start. Obviously, this is a subject people are interested in. PK, in particular, is concerned that allowing the largest record company to absorb the fourth largest would create a “super-major” label that would have too much control over methods of distribution and would harm consumer access to music.

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Yesterday I watched PK President and CEO Gigi Sohn, among others, testify in front of the Senate Judiciary Committee Subcommittee on Antitrust, Competition Policy and Consumer Rights in a hearing on “The Universal Music Group/EMI Merger and the Future of Online Music.” Seeing the hearing in person was itself an achievement, as the line was already down the hall and around the corner an hour and a half before the scheduled start. Obviously, this is a subject people are interested in. PK, in particular, is concerned that allowing the largest record company to absorb the fourth largest would create a “super-major” label that would have too much control over methods of distribution and would harm consumer access to music.

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Yesterday I watched PK President and CEO Gigi Sohn, among others, testify in front of the Senate Judiciary Committee Subcommittee on Antitrust, Competition Policy and Consumer Rights in a hearing on “The Universal Music Group/EMI Merger and the Future of Online Music.” Seeing the hearing in person was itself an achievement, as the line was already down the hall and around the corner an hour and a half before the scheduled start. Obviously, this is a subject people are interested in. PK, in particular, is concerned that allowing the largest record company to absorb the fourth largest would create a “super-major” label that would have too much control over methods of distribution and would harm consumer access to music.

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PK In The Know Podcast: Music Merger, Downloading YouTube, and Tetris

June 22, 2012

On today's podcast we discuss the Congressional hearing looking into the UMG-EMI merger, downloading YouTube videos, and what part of Tetris is protected by copyright.

Subscribe to the podcast on iTunes here.
Subscribe to the podcast via the .xml here.
Click here to download the file for this week's podcast directly.

You are missing some Flash content that should appear here! Perhaps your browser cannot display it, or maybe it did not initialize correctly.



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You are missing some Flash content that should appear here! Perhaps your browser cannot display it, or maybe it did not initialize correctly.

On today's podcast we discuss the Congressional hearing looking into the UMG-EMI merger, downloading YouTube videos, and what part of Tetris is protected by copyright.

Subscribe to the podcast on iTunes here.
Subscribe to the podcast via the .xml here.
Click here to download the file for this week's podcast directly.

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On today's podcast we discuss the Congressional hearing looking into the UMG-EMI merger, downloading YouTube videos, and what part of Tetris is protected by copyright.

Subscribe to the podcast on iTunes here.
Subscribe to the podcast via the .xml here.
Click here to download the file for this week's podcast directly.

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You are missing some Flash content that should appear here! Perhaps your browser cannot display it, or maybe it did not initialize correctly.

On today's podcast we discuss the Congressional hearing looking into the UMG-EMI merger, downloading YouTube videos, and what part of Tetris is protected by copyright.

Subscribe to the podcast on iTunes here.
Subscribe to the podcast via the .xml here.
Click here to download the file for this week's podcast directly.

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Public Knowledge President Testifies against UMG-EMI

June 21, 2012

In today's testimony before the Senate Antitrust Subcommittee, Public Knowledge President Gigi B. Sohn will oppose the Universal Music Group (UMG) and EMI Music merger, arguing that the deal will result in “less competition and choice in distribution, stifled innovation, and higher prices.”

Sohn notes that if a combined UMG-EMI withheld its music from a digital service, “You would not have 6 of the top 10 songs for 2011.  You wouldn’t even have a majority of the top 100 songs for 2011 because a combined UMG and EMI would own 51 of them.  The fact is, you just would not have a viable digital music service and as a result, you will be beholden to the merged entity." 

Gigi Sohn's Testimony before the Senate Antitrust Subcommittee RE: UMG-EMI

June 21, 2012

PK President Gigi Sohn testified in opposition to the proposed UMG-EMI merger before the Senate Judiciary Subcommittee on Antitrust on June 21, 2012.

UMG-EMI Merger: Deja Vu All Over Again

By Gigi Sohn  | June 20, 2012

Tomorrow I’ll be testifying against the merger of Universal Music Group (UMG) and EMI Music.  A merger between the 1st and 4th largest record companies, in our opinion, would result in a “super-major” label with a 41% market share that would be able to dictate the future of new digital music services. The combined entity could deny licenses to new services, charge them enormous licensing rates, or even take an equity stake in the service.  



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Tomorrow I’ll be testifying against the merger of Universal Music Group (UMG) and EMI Music.  A merger between the 1st and 4th largest record companies, in our opinion, would result in a “super-major” label with a 41% market share that would be able to dictate the future of new digital music services. The combined entity could deny licenses to new services, charge them enormous licensing rates, or even take an equity stake in the service.  

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Tomorrow I’ll be testifying against the merger of Universal Music Group (UMG) and EMI Music.  A merger between the 1st and 4th largest record companies, in our opinion, would result in a “super-major” label with a 41% market share that would be able to dictate the future of new digital music services. The combined entity could deny licenses to new services, charge them enormous licensing rates, or even take an equity stake in the service.  

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Tomorrow I’ll be testifying against the merger of Universal Music Group (UMG) and EMI Music.  A merger between the 1st and 4th largest record companies, in our opinion, would result in a “super-major” label with a 41% market share that would be able to dictate the future of new digital music services. The combined entity could deny licenses to new services, charge them enormous licensing rates, or even take an equity stake in the service.  

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UMG-EMI Merger

Digital distribution of music has changed the way we experience music and has begun to level the playing field between major record labels, independent labels, and unsigned artists. But major labels still dominate the market, controlling which new digital services live and die.

Now, major record label Universal Music Group (UMG) is attempting to acquire another major label, EMI. This would result in two companies—UMG and Sony—controlling almost 70% of the recorded music market.

Public Knowledge's Position

Public Knowledge believes that that type of market power would raise prices, harm independent labels and unsigned artists, and stunt the growth of innovation in the music industry. At such a high rate of consolidation, no new digital music service could exist without the blessing of UMG and Sony (and only those that do business on UMG and Sony’s terms would get their blessing).

Take a Stand for Musicians & Fans: Stop the UMG-EMI Merger

Digital distribution of music has changed the way we experience music and leveled the playing field for major labels, independent labels, and unsigned artists. Despite this shift in music sales from physical to digital media, the major record labels have continued to dominate the music market.

Now, major record label Universal Music Group (UMG) is attempting to acquire another major label, EMI, and take possession of all its recorded music libraries. This would result in one company controlling more than 40% of the music market and shrink the number of major labels from four to three.

That type of market power could raise prices, stifle independent labels and unsigned artists, reduce competition for music, and stunt the growth of innovation in the music industry.

The Role of Antitrust in Protecting Competition, Innovation, and Consumers as the Digital Revolution Matures: The Case against the Universal-EMI Merger and E-Book Price Fixing

June 14, 2012

This paper on the UMG-EMI merger was published by Mark Cooper and Jodie Griffin on June 14, 2012. A PDF version, with full bibliography and appendix, is available here. 

Mark Cooper,
Director of Research, Consumer Federation of America
Fellow, Donald McGannon Communications Research Center, Fordham University

Jodie Griffin,
Staff Attorney, Public Knowledge

June 2012

Letter to Senate Antitrust Subcommittee on UMG/EMI

April 26, 2012

This letter was sent to the Subcommittee on Antitrust, Competition Policy and Consumer Rights of the Senate Judiciary Committee, as well as the House Judiciary Committee and the House Subcommittee on Intellectual Property, Competition, and the Internet. The letter is from the Consumer Federation of America and Public Knolwedge.

The letter to the Senate Subcommittee on Antitrust is available as a PDF here. The letter to the House Judiciary Committee is available as a PDF here. The letter to the House Subcommittee on IP is available as a PDF here.

April 26, 2012