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Sony Music, BMG Merge to Form World's 2nd Largest Record Label

Authored by Mark Hefflinger on August 6, 2004 - 3:28am.
New York -- Sony Music Entertainment and BMG announced on Friday the creation of Sony BMG Music Entertainment, a joint venture that will become the world's second largest record label behind Universal and reduce the "Big 5" group of major labels to just four. The merger recently gained antitrust approval from both the Federal Trade Commission and European Commission. Former Sony Music chairman and CEO Andrew Lack will serve as CEO of the 50-50 joint venture, while former BMG chairman and CEO Rolf Schmidt-Holtz will serve as chairman. "The creation of Sony BMG Music Entertainment is a historic opportunity for us to build a new music company that we believe can thrive creatively and financially in a highly challenging worldwide music market," said Schmidt-Holtz. As a result of the merger, the combined company is expected to lay off as many as 2,000 employees, according to published reports.
tags: Sony Music | BMG Merge | Record Label |

FTC Gives Antitrust Approval to Sony BMG Record Label Merger

Authored by Mark Hefflinger on July 29, 2004 - 4:14am.
Washington -- The Federal Trade Commission (FTC) has concluded its antitrust investigation into the proposed merger of two of the world's five major record labels -- Sony Music and BMG -- and given the merger the green-light. The FTC also worked with the European Commission on that regulatory body's antitrust investigation into the merger; the EC granted its approval of the deal last week. The merger of Sony's and Bertelsmann's music businesses will create a joint venture, Sony BMG, which will become the world's second-largest record company, behind Universal. Opponents argued further consolidation in the music industry, which in the past two decades has seen a multitude of formerly independent labels swallowed by what will now be the "big four," would harm artists in the long run. "We now look forward to creating a global recorded music company comprising many of the world's most successful artists as well as a vast catalog of recordings," BMG said in a statement.
tags: Sony | FTC | BMG | Merger | Antitrust Approval | Record Label |

EMI to Cut 20% of Workforce, Drop 20% of Artists from Record Label

Authored by Mark Hefflinger on March 31, 2004 - 3:52am.
London -- Major record label EMI announced on Wednesday that it will cut 20% of its global workforce and eliminate one in five of its roster acts, as part of a restructuring that will also see the company largely outsource its CD manufacturing needs. EMI said 900 of the 1,500 total layoffs will come from the closure of manufacturing plants in the U.S. and Europe, including one in Illinois. The company did not disclose which artists would be dropped from the label, but said that they are "largely niche and under-performing artists," and that "the roster is being rebalanced to focus resources and efforts more effectively on the artists who have the greatest potential on both a global and local level." EMI expects the restructuring to save the company $91.5 million a year.
tags: Artists | EMI | Record Label | Workforce |

Apple in U.K. Trademark Suit with Beatles' Apple Corp Record Label

Authored by Mark Hefflinger on February 25, 2004 - 7:57am.
London -- Apple Computer went to court in England on Wednesday to argue for its right to continue to use the "Apple" trademark in the U.K., where the company has a past agreement with the Beatles' record label -- also named Apple -- not to use the trademark in connection with the music business, Reuters reported. U.K.-based Apple Corp. says that the computer maker breached the companies' 1991 agreement with the launch of its iTunes Music Store. In court Wednesday, Apple Computer argued first that the case should rightfully be heard in California, and not England, and also that its agreement with the record label includes use of the Apple name for "data transmission services," which the company says encompasses the music download store. The hearing on the trademark dispute is expected to last three days.
tags: Apple | Beatles | U.K | Record Label | Apple Corp |

Beatles' Record Label, "Apple Corps," Again Sues Apple Computer

Authored by Mark Hefflinger on September 12, 2003 - 7:04am.
London -- Apple Corps, a record label founded by The Beatles, has sued Apple Computer over its further encroaching into the music space with its iTunes Music Store, according to published reports. Apple Corps first sued Apple Computer for trademark infringement in 1989, and as part of the $26.4 million settlement, the computer maker agreed not to use its name or logo in connection with recorded music. The company lost another $25 million lawsuit filed by Apple Corps, when it released technology allowing external speakers to be connected to its computers. Apple released the following statement in response to the lawsuit, filed in London High Court. "Over a decade ago, Apple signed an agreement with Apple Corps, a business controlled by the Beatles and their heirs, which specified the rights each company would have to use the 'Apple' trademark. Unfortunately, Apple and Apple Corps now have differing interpretations of this agreement and will need to ask a court to resolve this dispute."
tags: Beatles | Record Label | Computer | Apple Corps |