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| From | David Pearlman <dap@arlingtonmass.com> |
| Subject | Time-Warner will never learn: WEA and BMG looking to merge as equals |
| Date | Wed, 10 Sep 2003 12:16:32 -0400 |
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You'd think that after the AOL - Time/Warner debacle, Time/Warner would have
learned a thing about poorly timed and considered mergers.
Apparently not. They are deep in negotiations to merge the WEA labels with
BMG, as co-partners (50-50). They are discussing what sort of monetary payment
needs to be tossed in (by BMG) to make that happen, but it's just a ridiculous
concept.
WEA sits on one of the most valuable catalogues of titles in the world. (Warner
Bros, Atlantic, Elektra/Asylum along with various more minor labels). BMG...Well, BMG
has had a nice run the past few years though Zomba, Arista and RCA. But who really
thinks Britney Spears, the Backstreet Boys, etc. have created much long-term
catalogue value? Where is the long-term catalogue value at BMG? They've got the
awesome old RCA classical catalogue, but classical recordings have never generated
that much profit, and never will. Zomba? Ha ha. Arista? Well, there are some
decent catalogue titles. But the label is only 28 years old and doesn't have a
catalogue to compete with WEA. Not to mention the fact that very few career artists
are now with the label. RCA's popular division has always been a laggard, and they
even lost one of their crown jewels (Bowie). Elvis Presley doesn't sell that well
anymore. Who else? Jefferson Airplane/Starship? Hall & Oats? John Denver?
WEA and EMI I could see. WEA and Columbia. But WEA and BMG? Heck, anyone and BMG?
Seems to me Universal (UMG) (the biggest record company now, and even after the WEA
BMG merger) might be able to absorb BMG if they didn't have their own problems, and no
one would really notice. But WEA is merging as a step toward long-term survival. I don't
see how merging with a label that is hot due to a bunch of short shelf life trendy product
does that for them...
dap
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