Sony Music and BMG merge into one entity

[Guest Low Roller]

Sony, BMG Merge into One Grotesque Abomination

Yesterday, Sony Music and Bertelsmann Music Group (aka BMG) announced that they have merged to form the world's second largest recorded music company, coming in a close second to everyone's favorite media conglomerate, Universal Music Group. Sony BMG now controls more than 22% of the global music market, with sales totaling around $8 billion annually. The merger now leaves the music industry with just four major labels: Sony BMG, Universal Music Group, WEA, and EMI.

The European Union approved the deal yesterday, despite opposing a similar merger between Warner Music Group (WEA) and EMI four years ago. Apparently, the EU's main concerns with the merger this time around had to do with fixed pricing on CDs and market collusion (roughly translated: more expensive CDs and fewer music choices), but they ultimately decided they couldn't prove the likelihood of either. Which is sort of amusing when you consider how many bands were dropped from their contracts (nearly 300) when Universal merged with Polygram back in 1998-- doesn't take a fu©king brain surgeon to assume a similar scenario here.

Around 2000 of the two companies' staffers are expected to lose their jobs (25% of their total workforce), according to the Hollywood Reporter. However, the companies are insisting that "core Artists and Repertoire business" will not be affected. We don't know if the "core" modifier has any significance, but the burning question on everyone's mind is obviously: What effect will this have on The Raveonettes?

The 50/50 merger was lauded by rich white men prominent in both companies, as Andy Lack, chairman and chief executive of Sony Music said: "We have recognized that the creation of Sony BMG is an appropriate and necessary response to current market conditions." There's no indication as to whether any of the bands on Sony BMG's staggering roster will be threatened, but a quick gander at the artist pages on the companies' respective websites should be enough to get the paranoid juices flowing. Then again, maybe it'll just give Merge Records a few new bands to sign.

[credit: Pitchfork.com]