French industry blogger Hugo Amsellem has proposed a radical solution to the music biz’s woes: ‘vertical integration’. Or, in his words: “It’s very likely that the majors will merge with the new online music distributors: the Internet access providers / operators.” He also suggests what the impact of such mergers would be on the industry: “Produce an artist in the majors, promote him through radio and now the ISPs and streaming services, distribute the music via an ISP and through traditional channels controlled by the majors.” Billboard has some stern words in response to his theory though, pointing out the huge cultural differences between ISPs and labels, not to mention geographical issues. “Because ISP ownership is so fractured around the world, it would be impossible for any single ISP to own a record label’s content without the need to license it for use in other territories.” Source: MidemNet Blog
Could major labels merge with ISPs?
