This was the top story in my Aversion daily email…
EMI is hoping that by gobbling up a horde of independent labels, it can boost its bottom line.
The music company earmarked $100 million for acquiring independent labels, according to The New York Post, and, if things go its way, the label will spend twice that to buy out those cool, artist-friendly labels we've all grown to love. No potential buy-outs for the massive label have been announced.
Of course, because those plans are part of a larger plan for the label to increase revenues by 766 percent in five years, so the whole plan may be a little flawed. In addition to expansion into the indie-label market, the company plans the usual belt-tightening and cutbacks that always accompany a push for a bigger margin in the music industry. EMI also plans to boost its bottom line through digital distribution.
Does the phrase "gobbling up a horde" make your stomach churn? Which labels do you think they'll target? How do you think it will impact the actual bands and musicians on said labels? Any chance a decent chunk of that $100 million will make its way toward the actual musicians and help them tour/record/boost their careers (my eternal optimism shining through)? Or would an acquisition only signal a downward spiral toward less truly independent music and more lowest common denominator crap rock?
Also, any bets on which labels will be targeted first?