Then There Were 3

In our every changing economy we never know which major companies will need a government bailout or file Chapter 13 bankruptcy. From banks to automobile companies every industry has fallen on hardship, this has also affected the music industry greatly.  While the music industry has always been an industry of change from generation to generation, it has made another big change that will affect the industry as a whole.

In 1988 there were six major record labels that were referred to as the “Big Six”.  Over the past twenty plus years the “Big Six” has diminished in half to become the “Big Three”. In 2011 the music industry has seen the affects of downsizing with RCA shutting down Arista, Jive and J Records and earlier this year Billionaire Len Blavatnik purchased Warner Music Group for $3.3 billion. Now with Citigroup's recent sell of EMI to Universal Music Group and Sony, two of the original “Big Six” leaves only three major records labels left.  In a deal that would include the sale of EMI’s recorded music to Universal Music Group for $1.9 billion and EMI’s publishing for $2.2 billion to Sony.  So would say that this is not a surprise move from Citigroup.

  

Now the question that we all would like to know, are major labels still the way for artist to go or would it be better for an artist to stay independent?  Can artist trust and put faith in the  “Big Three” in a declining music industry that is now going more digital? The next five years should be able to tell us which direction the music industry is headed and as artist which will be the best for you.  If we would have to give you our opinion, Universal, Sony and Warner Music Group will be the “Big Three” for years to come unless some major change in the industry comes along to impact the three in a major way.