According to several sources, Citigroup is proceeding the sales of EMI which is one of the Big 4 record labels. Previously, KPMG issued an on-going concern warning EMI’s accounts but Citigroup took its share for the write-off of EMI’s bad debts.
On the contrary to EMI’s case, Spotify announced that the company will provide its service in America from July 14. This emerging music distributor has rapidly increased its number of subscribers and empowered its service functions such as sharing and offering a playlist.
The power-axis of the market dynamics is changing to the player who has a concrete marketplace. Though it is important to make goodly contents, it may be better for the market to get a differentiated marketplace and social networking features.
The other interesting example is the case of Hulu and Netflix. Hulu is the JV which famous broadcasting companies participate in such as NBC, News Corp. and Disney. Hulu has grown fast and continues to maintain its fast growth rate. But the shareholders of the company are preparing for its sale. It is not easy to be sure whether the figure is not that satisfying to shareholders or they want to realize the profit of the investment.
While Hulu is surrounded by rumors, Netflix is stepping forward. Netflix will launch the service in Latin America by the end of this year. Whether this trial can be succeeded or not, Netflix’s swift expansion is very impressive.