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Apple May Buy Universal Music Division
April 12, 2003
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According to reports that first surfaced in the LA times Apple is in negotiations to buy Universal music. Universal music is the largest of the 5 big record companies and owns the copyright to about 25% of all music sold. Apple has recently been expanding its business into both the content business and digital music products.

Any possible purchase will have major obstacles to overcome.

Apple and Universal have very differing core businesses. Such marriages of business often end up been a disaster. As one commentator put it "Organizations that enter into business outside their core operation usually emerge battered & bruised and millions of yoyos lighter at the end of it".

Another issues is the current state of the business it could be acquiring. The music industry is currently in the midst of one the biggest crisis to hit it in recent times. CD sales keep falling, music stores are closing and music is been viewed less and less as a commodity.

However, many people have argued that it may be possible to solve this crisis via the music industry embracing digital music rather than fighting it. Core to achieving this is the strategy adopted by the big 5 labels and their inter relationship with technology and P2P related companies.

Should Jobs acquire Universal he would help foster a better relationship with technology companies and would most certainly change the direction of the music major.

However with many people going as far as to predict that the internet and P2P will ultimately spell an end to the music industry Jobs would certainly have a major challenge ahead.

This story is filed in these Slyck News categories
Technology News :: Other

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