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October 14, 2005
From Record Label to Music Entertainment Company
Digital Music News: Insider Blogs
Mark today as a turning point in music business history. It marks the day when the largest major label in the world, Universal Music Group, publicly announced their intention to become a....music entertainment company. Essentially they're confirming their strategy of vertically dis-integrating and horiontally integrating, which I think is a good thing. I admit, getting signed to a music entertainment company doesn't quite roll off the tongue like getting signed to a label. But, notwithstanding Rafat's misgivings, I think it's the right move. Indeed it has to be done.
Check out the investor presentation where they say:
Podcasting - An important new media distribution channel
•Talk / Spoken-word currently dominates podcasts
•No legal mechanism to access major music catalogs
•UMG working to establish a licensing structure for podcasting•A potential competitor to broadcast radio and new revenue stream for UMG
Posted by roymond at 05:32 PM | Comments (0)