Washington, D.C .— Future of Music Coalition (FMC) has for several months raised questions about a proposed merger between Universal Music Group and EMI Music, which would have a negative impact on artists as well as the growth of a legitimate digital music marketplace that rewards creators and fans alike.
News recently broke of an EMI proposal to European regulators that included divestitures and behavioral remedies meant to alleviate concerns over market concentration and resultant consumer harms. These supposed palliatives, however, do nothing to address concerns over the merger’s impact on the U.S. market, including the impact on innovation and leverage within the independent sector.
The following statement can be attributed to FMC Deputy Director Casey Rae:
“It is never a comfortable thing to see musicians herded around like livestock by massive companies with a demonstrated lack of concern over how their business decisions impact the very people who make their businesses possible.
“Allowing a single label to dominate the market to such an extent will inevitably lead to a lack of legitimate options for consumers, set artificial limits on emerging music services and diminish access and compensation opportunities for musicians and independent labels. There is no reason to believe that the remedies proposed by EMI will have any effect on these outcomes, especially considering that they do not apply to the U.S. market. If the merger is approved on either side of the pond, it can only be seen as a step backwards in the establishment of a viable 21st century music ecosystem.
“Historically, independent artists and labels have lacked the leverage to compete against the biggest corporate entities. More power in the hands of fewer companies means that any influence they do have will be greatly hampered. This is a betrayal of the promise of a digital marketplace where creators are compensated and fans can find the music they want. The goal of regulators in the U.S. and abroad should be to preserve and promote competition at this crucial level.”
Future of Music Coalition is a national non-profit education, research and advocacy organization that seeks a bright future for creators and listeners. FMC works towards this goal through continuous interaction with its primary constituency — musicians — and in collaboration with other creator/public interest groups. More