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Indies comment on Warner/Parlophone deal, EC confirms they will gain PLG assets

By | Published on Thursday 16 May 2013


IMPALA and Merlin yesterday issued a statement talking up the positive effects of the European Commission’s approval of the sale of Parlophone Label Group to Warner Music yesterday.

As previously reported, the organisations made agreements with Warner Music earlier this year, which will see certain PLG assets sold to indie labels. The EC yesterday confirmed that this was part of what led to approval of the sale, saying: “Pursuant to this agreement, WMG, upon completion of the proposed transaction, will undertake a number of structural and financial measures, which, once implemented, would likely result in the strengthening of the independent music sector in the EEA. These measures include, for example, opportunities to buy, license or distribute certain WMG or PLG assets”.

IMPALA Executive Chair Helen Smith told CMU: “This marks the beginning of a new chapter for independent labels and their artists”.

Meanwhile, Beggars boss Martin Mills told Music Week: “This is good news for the market, and goes some way towards mitigating the concerns raised by Universal’s EMI acquisition, which we are already seeing become reality. As the clearance says, the strengthening of both Warners and the independents, as a consequence of Warner’s agreement with IMPALA and Merlin, should go some way to counter the power of Universal – and the existing duopoly of Universal and Sony – to unilaterally determine the shape of the marketplace. The consequent strengthening of the independent sector as a whole should be especially welcomed”.