Published By : 22 May 2018 | Published By : QYRESEARCH
To fulfill its dream of taking the crown of the biggest music publisher in the world, Sony Corp has announced that it would fork out a staggering US$2.3 billion to gain control of EMI. This would enable it to gain control over the streaming services which is becoming popular by the day in the music industry.
With two billion dollars’ worth acquisition, Sony will now have access to over 2 million songs of world renowned singers of the likes of Sia, Kanye West, and Sam Smith. This was revealed by Kenichiro Yoshida, its new CEO. Incidentally, this is the biggest acquisition so far by him.
Acquisition to Tap Into Popularity of Music Streaming Services
Overall, the acquisition is aimed at taking advantage in the swift popularity of music streaming services such as Apple Music and Spotify which have helped the music industry recover. This is also in line with the CEO’s aim to build more stable revenue streams. His predecessor earlier had brought about a crucial turnaround by shifting the focus of the company away from low-margin consumer electronics to image sensors and entertainment content.
As far as EMI is concerned, it currently accounts for a 15 percent share in the music publishing industry. Once combined with the present Sony ATV business, the Japanese entertainment and electronics giant would come to hold 26 percent share in the market.
The deal would take Sony’s ownership from the current 30% to 90% in EMI Music Publishing.