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Learning English - Words in the News 21 July, 2004 - Published 11:03 GMT Sony and BMG merger | ||||||||||||
The music industry is set for a major shake-up following the approval of a merger between two of the world's big five record companies - Sony and the German group Bertelsmann, or BMG. This report from John Moylan: This merger brings together some of the biggest artists in the world, from Britney Spears to Bruce Springsteen. The new company, to be called Sony BMG, will have roughly a quarter of global sales and will rival Universal Music for the number one spot. The EU's authorities had originally raised concerns about the deal, fearing the concentration of power would hit consumers in their pockets. But granting approval, the European Commission said it did not have strong enough evidence to oppose it. That's a view not shared by many independent record companies who have warned the deal will make life much tougher for them. The music industry has been rocked by four years of falling worldwide sales and the rise of online music and piracy. This merger will allow Sony BMG to make hundreds of millions of dollars' worth of cost savings. Up to a quarter of staff are expected to lose their jobs. John Moylan, BBC, Brussels merger roughly rival raised concerns hit consumers in their pockets evidence oppose make life much tougher rocked piracy |
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