British Indies Against UMG Takeover Of V2
October 1, 2007 at 5:35 AM (PT)
BRITISH Independent record labels have criticized UNIVERSAL MUSIC's acquisition of indie label V2, saying that the group's expansion will stifle competition and narrow consumer choice, writes U.K.'s THE TELEGRAPH. THE ASSOCIATION OF INDEPENDENT MUSIC will make the claim today in a submission to the OFFICE OF FAIR TRADING's inquiry into the £7m takeover.
UNIVERSAL Music often commands more than 40% of the weekly top 75 in BRITAIN, where, the association says, the real market power lies as it reflects key air-play and retail presence. "This results in restricted access to market for smaller companies," it says.
"The tying up of radio-play and music TV slots, retail space, online visibility and advertising makes it harder for independents to compete and enables consumers to see and hear less music through these key channels."
ALISON WENHAM, the music association's chief executive, said: "The music industry is not a commodities industry, it is a cultural industry. The OFT is right to look at this because the whole market is suffering from the dominance of one company."