Universal purchased EMI more to gain market share than anything, but this already looks like it's backfiring. Here's why:
1. In order for the purchase to go through, Universal had to shed labels and publishing units in Europe. That meant that the market share boost wouldn't be as much as they originally thought, nor would the value of EMI be as high as a result.
2. Universal already had the largest market share already with over 30%. What reason was there to increase it other than ego or some obscure executive bonus? Sure Sony Music is strong, but more of that may be due to #3 below.
3. The EMI acquisition has taken up so much time and attention that the execs at Universal have taken their eye off the ball of selling music. This will continue to be a problem for another year at least.If I was an artist on Universal or EMI right now I'd be worried. You don't know if any of your champions in A&R, sales, marketing will be let go, you don't have their full attention as they angle for new jobs as a fall-back, and the suits in the boardroom continue to play corporate structure games instead of their core business.
This is a perfect example of what happens when big business gets involved in what should be art.
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