A concept born on the 6th September 2012 in reaction to Bruce Willis’ Will, is now a contemporary Music Industry issue.

Willis’ revelation over the itunes T&Cs: Itunes libraries are misleading. We rent music, own nothing.

‘Most favoured nation’ agreement between Universal Music and digital distributors now ceased. Digital market open to consumer price increase by Apple, Google & Spotify as pricing power has shifted in their favour.

 

Reinvigorate CD sales.

Focus on the physicality & content ownership of the CD-rom. “To buy; to own. To rent; unknown”.

Advertising campaign prepared for Christmas, and activate during Universal’s required EMI 6 month sale period.

Campaign options: Predatory campaign with Universal, or inclusive campaign with entire Music Industry.

 

In light of decisions regarding the merger between EMI and Universal Music by European Competition Authorities on Friday 21st September 2012:

European Competition Authorities reinforced competition Law stating no Market leader may extend its EU market share beyond 40%.

Consequentially Universal is to sell businesses representing 60% of EMI’s European revenues and 30% of entire company.

Universal has 6 months to auction EMI assets that generate annual revenues of £350-400m.

In contract negotiations with digital music providers, Universal can no longer demand a “most favoured nation”guarantee to receive the best licensing terms.

Universal has paid a greater price for EMI than anticipated, and received added restrictions and fewer assets to profit from long-term.

 

Increasing CD sales across all Universal and EMI’s labels and artists. This will generate immediate revenue to help fund the shortfall in value.

Universal needs to increase the value of the assets for sale. Universal paid seven times earnings before interest tax on assets, and is seeking to resell at the same value or more in a distressed “fire sale” situation.

The appeal of a Predatory Campaign

Universal has no time to waste in implementing this campaign, with only 6 months to dispose of the requisite EMI catalogue.

After losing their ‘most favoured nation’ agreement to get the best licensing terms with digital distributors, they face a reduction in revenue from their digital sales of music. Increasing CD sales could counter this.

 

Greater benefit to the Music industry: more morally satisfying than progression of a single company.

Campaign covers all music genres and exposes the campaign to all music buyers.

Increased CD sales will benefit all music producers and artists and revive a flagging industry.

The appeal of an Industry Inclusive Campaign

Immediacy of campaign: the agency that embarks on this leads an innovative collaborative partnership with other music Advertising and Media agencies, pooling greater resources to help the music industry.

Independent Record Labels are less likely to launch an appeal against the European Competition Commission’s decision over the power of the merged company.

 

A campaign brings a new disruptive element to the music industry.

Focus solely on increasing CD sales immediately!

Postpone the defence of Apple, Spotify, Google or other digital contemporaries - despite potential campaign against Bruce Willis’ recent exposure of misleading T&Cs.