More on the news from Friday that pan-European indies body IMPALA plan to "forcefully" oppose any EMI Warner merger. Of course, it is still unclear if the London and New York based companies will in fact come together, with both sides currently keen to take over the other, rather than be taken over. However, should the companies reach a deal they will have to seek EU approval, and IMPALA say they will endeavour to ensure such approval is not forthcoming.
Prior to the SonyBMG merger deal in 2004, it was unclear if the EU would approve any further consolidation in the music industry, EU officials having essentially blocked a previous attempt by EMI and Warner to merge over concerns that too much control of the music business would fall into too few hands. However, after EU officials approved consolidation in the travel industry that meant three major players dominated the sector, the major record companies argued they couldn't stop similar moves in the music business, and so the SonyBMG merger got the green light.
However, IMPALA opposed that merger too, and are still appealing the decision to let it go ahead through the European courts. Should that legal challenge be successful there is little that can be done regarding SonyBMG, it now being a fully merged entity, however if the EU courts rule the SonyBMG merger should not have gone ahead, then it might be harder for officials to allow an EMI Warner deal through.
Either way, IMPALA will try to stop it. Confirming that on Friday, IMPALA chair Michael Lambot, co-Chairman of PIAS (Belgium), told reporters: "At a time when the rumours are saying that Vodaphone is ready to buy Vivendi/Universal, that Warner and EMI want to marry and that Bertelsman wants to sell its stake in Sony/BMG, who cares about culture and music? Will we need soon a cultural Kyoto treaty?"
Other key players in the independent sector also lined up to diss any EMI Warner merger. Here's what they said.
Hein van der Ree, Managing Director of Epitaph Europe: "If three companies have a market share of 75%, they can effectively dictate their terms to 100% of the market place. I don't see how that can be acceptable to anyone interested in ensuring market access to all players, large and small."
Horst Weidenmueller, CEO of !K7 Records: "A possible EMI/Warner merger will cause thousands of bands to be dropped. This will enhance the concentration of music repertoire available in the market. But what the music market needs in order to grow is cultural diversity with an access to the market. Unfortunately this is the opposite of what will be the effect of this possible merger."
Patrick Zelnik, President CEO of Naïve: "Concentration kills creation, kills independents, kills cultural diversity. Strangely enough, the European commission supports the UNESCO convention on cultural diversity, but ignores it when it comes to mergers in the music industry. The music market is not in a very good shape and shooting on an ambulance is not a clever move."
The indies are encouraging those who oppose the may be merger to sign their petition at http://www.forculturaldiversity.org.