INDUSTRY Universal-EMI Monopoly?

I've posted several times on this, and will add links to all below at some point, but here's a fresh angle on this story - which is ideal to help you show some knowledge and understanding of the economic operation of the music biz, as well as the impact of digitisation. The story features Universal, so should remind you of the concepts you came across when studying British cinema...

The proposed 'merger' of Universal and EMI (basically, the British giant EMI being swallowed up by the US giant Universal) has been very controversial and may now be blocked as US politicians in the Senate have argued this would endanger competition in digital media, and threaten to push up CD prices by reducing competition. See http://www.guardian.co.uk/media/2012/aug/03/mediabusiness-emi.

I notice also that Universal have been providing the music used at the Olympics, a handy spot of global advertising there (their fellow Vivendi subsidiary NBC, the US TV network, are broadcasting the Games in the US): http://www.guardian.co.uk/sport/2012/aug/04/olympic-stadium-music-locog.

INDUSTRY: EMI sale creates Big 3

With the announcement that EMI is being bought up as two packages by Sony and Universal, the already absurd concentration of ownership that was the big 4 now becomes the big 3, as I blogged on recently:

The last British giant, EMI, has been in the hands of private equity companies for some time, and has been effectively for sale for a while now, the private investors having bought it at what now seems an obviously inflated price just as the music industry began to feel the financial impact of digitisation.

This article contains a useful update on all this.
So, will the Big Four become the Big Three?

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A little bit of theory: Chomsky's propaganda model includes as one of the five filters 'concentration of ownership, while Ben Badikian has written about the negative impact of monopoly (a topic we'll explore for the exam Media Regulation topic) in his classic book The Media Monopoly (now renamed The New Media Monopoly)

Leading corporations own the leading news media and their advertisers subsidize most of the rest. They decide what news and entertainment will be made available to the country; they have direct influence on the country's laws by making the majority of the massive campaign contributions that go to favored politicians; their lobbyists are permanent fixtures in legislatures.
This inevitably raises suspicions of overt conspiracy. But there is none. Instead, there is something more insidious: a system of shared values within contemporary American corporate culture and corporations' power to extend that culture to the American people, inappropriate as it may be. (excerpt from http://www.thirdworldtraveler.com/Media/Afterword_Bagdikian.html)

You can find an archive of articles at http://www.guardian.co.uk/business/emi
Some recent, useful additions include:
'EMI: the sad demise of a very British company: For three decades, EMI took on the world in record sales. Now its sale to Sony and Universal marks the end for the music major'
'Universal and Sony reach deal to buy EMI for £2.5bn: Famous British music business could be split into two in agreement that hands control to biggest rivals'
'Farewell then EMI, your tunes were the background to our lives: The company that brought us Cliff and the Beatles, the Sex Pistols and Susan Boyle is disappearing. We should salute its contribution to our culture'

INDUSTRY: Big4 almost Big3 - EMI sale

The last British giant, EMI, has been in the hands of private equity companies for some time, and has been effectively for sale for a while now, the private investors having bought it at what now seems an obviously inflated price just as the music industry began to feel the financial impact of digitisation.

This article contains a useful update on all this.
So, will the Big Four become the Big Three?

-------------------------------------------------------

A little bit of theory: Chomsky's propaganda model includes as one of the five filters 'concentration of ownership, while Ben Badikian has written about the negative impact of monopoly (a topic we'll explore for the exam Media Regulation topic) in his classic book The Media Monopoly (now renamed The New Media Monopoly)

Leading corporations own the leading news media and their advertisers subsidize most of the rest. They decide what news and entertainment will be made available to the country; they have direct influence on the country's laws by making the majority of the massive campaign contributions that go to favored politicians; their lobbyists are permanent fixtures in legislatures.
This inevitably raises suspicions of overt conspiracy. But there is none. Instead, there is something more insidious: a system of shared values within contemporary American corporate culture and corporations' power to extend that culture to the American people, inappropriate as it may be. (excerpt from http://www.thirdworldtraveler.com/Media/Afterword_Bagdikian.html)