There are warm words for the co-founders of PIAS in European indies body Impala’s statement on this week’s news of the independent firm’s full acquisition by Universal Music Group. PIAS has long been a key member of Impala, including at board level.
“This will leave a huge hole in the independent sector and at IMPALA, with Michel [Lambot, co-founder of PIAS] on our board for 24 years and instrumental in achieving all our milestones,” said executive chair Helen Smith in a statement this morning.
The warmth is heartfelt, but so are Impala’s concerns about what the acquisition means in the bigger scheme of things. No surprise, given the organisation’s history of challenging consolidation of and by major labels.
“Impala expects regulators to investigate the acquisition and answer the question the industry is asking about how it is possible for UMG to gain more market share after it was already considered too big,” said Smith in her statement.
“We would expect both physical and digital markets to be assessed including for distribution services, as well as the impact on competitors, digital services, artists and fans. A share deal is one thing, this is something else.”
Impala added that it hopes regulators in the UK and US will investigate the deal and its implications, not just in Europe, although the latter is its lobbying focus.
“This type of creeping power is an issue across Europe. Apart from strengthening UMG in terms of market share, it eliminates a principal competitor and should be investigated,” said Impala chair Dario Draštata.
“Sony has been doing the same and we see similar moves in Central and Eastern Europe with Warner Music Group buying stakes in several leading independent music companies across the region.”
“We have been signalling the problem of creeping dominance for many years and it’s time for a new competition approach to address this question,” he continued. All eyes on the regulators now to see whether they take Impala up on its suggestions.
