Universal And EMI Set To Merge Into One Company
Music powerhouses EMI and Universal could be set to join together as one company later today (September 21st), as their controversial merger is set to be voted on by the Federal Trade Commission.
According to a number of sources close to the matter, the two companies look as though they will be given the green light to do so, despite this matter stirring up much controversy. The reason why the proposed move is so contentious is due to the fact that this move would mean that only three record labels would control 90 percent of the whole music market, with Universal controlling more than 40 percent. Music insiders fear that with that much control Universal could effectively order the workings of any new digital music platforms, establishing a firm grip around the current system.
Insiders and musicians alike have voiced their opinion on the matter, with many agreeing that the move will only hamper progress and exploit musicians further. Currently, the average musician makes around $23.40 out of every $1,000 made in music sales, with this system expected to continue as long as the powers that be at companies such as Universal say so. Regardless of what the critics say, the record company has defended its $2 billion acquisition of EMI, with a spokesman telling The Huffington Post that opposition to the deal is "based on a lot of hypothetical assumptions and misconceptions that are not grounded in the realities of the music business today."