IMPALA oppose the purchase of EMI by Universal
IMPALA, the Independent Music Companies Association is in strong opposition of the move by Universal Music for their proposed £1.2billion takeover of one of the music giants, EMI’s recorded music division. As reported by City A.M, IMPALA, who has over 4000 members across Europe in its trade body, are concerned that Universal’s bid for EMI would disregard competition interests.
In a statement published on IMPALA’s website on 26th January, Helen Smith (Executive Chair) said “Neither the USA nor Europe wants to see the music sector become a two-horse race, devoid of competition from any other companies.” As reported by CMU, if EMI are to be taken over by Universal, the sheer size of both Universal/EMI and Sony will overpower that of Warner and will effectively leave just two major labels as the big players in the industry.
The statement also brings to light the fact that independent artists contribute to only 6% of the Top 100 for both airplay and downloads across Europe, despite accounting for 80% of all new releases. Universal, EMI and Sony would also account for 76% of the Top 200, according to a new report by EMO and Eurosonic/Nooderslag. IMPALA also stated that in 2011 an astonishing 94% of airplay and 95% of the top 100 downloads in Europe were releases by the major labels, with Universal and Sony the leaders of the competition by a long way.
If the deal goes ahead, it will mean that artists such as The Beatles, Coldplay and Kylie Minogue, as well as the label’s subsidiaries including Parlophone and Virgin, will be under Universal’s control.
