EMI Music Group Split For Sale
It appears that Citigroup have decided to sell individual portions of EMI Music Group according to two press releases issued yesterday.
The labels within the group will be sold to Vivendi and Universal Music Group for £1.2 Billion whilst the publishing assets of the group will be sold to an investor group that includes Sony Corporation of America, David Geffen and the estate of Micheal Jackson for $2.2 Billion (source : Citigroup press releases 111111a / 111111b).
These sales are of course subject to regulation and independent label association IMPALA expects that the sale of EMI Recordings to Universal Music Group will be “blocked outright” according to their latest press release.
Warner Out For EMI Purchase
Billboard has reported that Warner Music Group has pulled out of the negotiations for EMI.
Citigroup have allegedly renewed negotiations with Universal and Sony whilst Independent label association IMPALA filled protests about the sale with the European Commission over concerns in regards to a possible duopoly in Europe.
According to their November 8th, 2011 press release, IMPALA had preferred a sale to Warner Music Group, which they believed “could help balance the duopoly but would still need substantial remedies as it would increase the competitive gap for the independents“.
Gartner Predicts Higher Online Music Sales
Gartner Research predicts that with the decline of the physical format (like the compact disc) that subscription services and music downloads will flourish.
In a press release issued yesterday the Connecticut based information technology research company estimated that online music sales would reach $6.8 Billion worldwide in 2012 and $7.7 Billion Worldwide by 2015.
The company also predicts a decline in compact disc sales from $15 Billion last year to $10 Billion in 2015.
Canadian e-Book Company Sold
The Canadian makers of the Kobo wireless eReader have been sold to Japanese company Rakuten for $315-Million according to Business Wire.
The company’s headquarters will remain in Toronto according to the press release.
Best Buy Wants Lower CD Prices
Billboard reports that Best Buy wants to reduce their CD prices to $9.99 in the states this holiday season but the labels are fighting the $7.25 wholesale price.
Best Buy had reduced the space dedicated to CDs and DVDs in their stores in Canada and the United States.
Astral To Launch Online Service In December
Astral Radio will be launching a online music service in December, which will be followed by a mobile compatible service in January.
The bilingual on demand streaming music and music video service will feature major and independent recordings and will be compatible with the major social media sites.
Additional information on this service can be found on this press release.