Indies Fight Over Universal Scraps

What happens to the bits of EMI that Universal has to offload to get regulatory approval of its $1.9 billion purchase of the British company may turn out just as contentious as the takeover.

Industry reports saying that PIAS, a largely European group that’s also known as Play It Again Sam Recordings, is in advanced negotiations to buy Co-Op have brought cries of foul from the indie sector.

Label chiefs including Heavenly Recordings’ Jeff Barrett and Lucky Number Music’s Stephen Richards have written to weekly trade paper Music Week and complained that the deal would mean choice of distribution “will be restricted” for small indies in future and that “Universal refused to consider offers from other potential buyers.”

If the deal does happen, then the indies that signed the letter reckon “a key independent player on the music market” would simply get “shot down” by another and, as a result, choice will be restricted in the future and businesses will suffer from it.

MW says some of the companies were also privately miffed because their own bids for Co-Op had been knocked back. The magazine says it’s also received a second letter, this time from Kemando Records, Mexican Summer and Software labels boss Thomas Clapp, saying that any further consolidation within the indie market place would adversely affect business.

The water is getting further muddied by Universal insiders apparently strongly denying that the Co-Op deal has been done, while other industry sources are reportedly suggesting that a formal announcement is imminent.