And then there were three…the balance of power shifts in the music business with the sale of EMI
Universal Music Group took EMI’s recorded music auction for $1.9 billion. Sony won EMI’s music publishing operations for $2.2 billion. The surprise outcome of the “come from behind” offers and a total sale price that exceeded industry watchers’ expectations completed months of frenzied anticipation. I was on the edge of my seat…. The only redeemable thing to come from this are the quotes from the executives of both companies who referred to an increasingly profitable music market as significant reasons they fought for their piece of EMI.
What’s in it for the winners? The New York Post reports that Universal’s EMI win will boost its global share of the recorded music business from 28.7 percent to 38.9 percent, and bring it top-selling artists Katy Perry, Coldplay and Lady Antebellum. Sony’s winning bid hands it 32.2 percent of the global market share in publishing. EMI is the second-largest publishing company in the world, with a 19.7 percent share, while Sony/ATV, its joint venture with Michael Jackson’s estate, controls 12.5 percent.
This consolidation — really monopoly of three major players — puts even more pressure on the indies to fight for the 90 percent of artists that are not on a major label.
31% of Consumers Plan to Buy Movies, Music This Holiday Season
Consumers plan to buy packaged-media movies and music in significant numbers this winter holiday season, according to Deloitte’s 26th annual holiday survey. The survey found that 31% of more than 5,000 respondents in an online survey conducted from Sept. 16 to 26 said they plan to buy DVD/Blu-ray Disc movies and/or music CDs this holiday season. About 20% of respondents plan to purchase video games. Separately, 27% of respondents said they plan to buy movie and/or music downloads, according to research from Elastic Path Software.
A new study finds surprising data on how consumers discover music
The music business association NARM and The NPG Group last week released findings of a joint study that examined the ways consumers discover new music. This is especially important to an indie distribution company like us that is strategizing the ways we can infiltrate consumers hearts and minds with the best new music.
According to the study’s findings, more than 80 percent of all respondents were interested in learning about new music from artists they were already fans of, and 60 percent were interested in learning about unfamiliar artists in genres that they usually buy. AM/FM radio and family/friends/coworkers are the most common avenues for discovery, and discovery via online radio and Web videos were also important for the most active music fans. Taken in aggregate, television (which includes competitions, awards programs, online video outlets, and scripted series) is also extremely influential.
Since 2007 retail stores have declined in importance as a place to discover new music; however, people who shop for music at retail stores are more likely to buy the music they discover there than from other sources. This was a key driver in the research, since other channels did not necessarily result in purchase. Combine this with other numbers released recently from various sources that support a strong retail climate for music and its good news for artists. However, for those of us in distribution, it makes it even more important to cross promote music across channels and push fans to those where they can make a purchase.
- Universal Buying EMI Group for $4.1B (time.com)