Music retailers fear big label mergers

Consumer choice under threat
November 22 2003
Music retailers are concerned that planned mergers of major music labels could hit market diversity and reduce consumer choice.

Entertainment giants Sony Music and Bertelsmann BMG have announced plans to merge, while Time Warner had been considering a bid for its Warner Music Group from EMI.
GERA-Europe, the European arm of the Global Entertainment Retailers Association, pointed out that the EU had noted concerns abou mergers when it blocked a deal between EMI and Warner in 2000. It said: “GERA-Europe feels that this assessment is still correct and still applies to the current market situation.”
The group, which lobbies on behalf of European entertainment retailers and their national associations said: “Entertainment retailers are concerned that the competition between labels may diminish to a level where a healthy and diverse market can not be retained, with the effect of reducing consumer choice.”