Nila Priyambodo
Co-editor
When Sony Entertainment merged with Bertelsmann AG in August 1994 to create Sony BMG Music Entertainment, 16 record labels fell under the new name, including LaFace Records, Arista, Columbia Records, J Records, Jive Records, Epic Records and RCA Records.
But Sony not only runs several music labels, Sony Pictures Entertainment also manages Columbia Tristar Picture Group, Sony Pictures Classics, TriStar Pictures and Screen Gems.
However, Sony is not the only company that owns several smaller labels. Warner Music Group also owns smaller music labels, such as Atlantic Records.
With these recent merges, entertainment conglomerates are creating smaller labels within one label. But it is also with these merges that consumers are complaining that big companies are “hiding behind” smaller labels to sell more and make more money.
“I never actually paid attention to the labels,” said Vanessa Arrevillaga, a junior graphic design major at Cal Poly Pomona. “It’s deceiving for people like me who would rather listen to indie music. I don’t consider it indie if it’s under a bigger label like Sony. They should be straight forward with their products.”
Arrevillaga is not the only music aficionado who believes Sony’s business acts are wrongful. Virginia Tse, a senior fashion design major at Woodbury University, knew that the smaller labels were owned by bigger companies, but she still feels it is inappropriate.
“The name independent labels should not be handled by huge corporations,” Tse said. “What would be the point of calling a label independent when clearly they are owned by huge corporations?”
Although many might disagree with how Sony is doing its business, some consumers like Frank Tran, a junior engineering major at Cal Poly Pomona, thinks Sony’s decision is purely good marketing.
“It’s all about money,” Tran said. “Most of these bands are trying to make it on the big scene, and this is the latest music genre young adults are listening to. Big companies like Sony know that they will be raking in the money by marketing toward teenagers and college students.
“Everyone is trying to make a living, and this is where the growth of the business will be,” he added.
Expert Jerry Del Colliano, USC Thornton School of Music clinical professor of music industry and recording arts, also believes it is a good marketing tool.
“It’s a smart move on their part,” Del Colliano said. “They know that large isn’t working so they need to think smaller in order to be successful. They are not ‘hiding behind’ the smaller labels. This is just a good business move. It is a great strategy.”
It is in fact a great strategy. In the 2005 fiscal year, Sony Corporation made $2,026 billion in music sales and $6,857 billion in movie sales.
“The creation of Sony BMG Music Entertainment is a historic opportunity for us to build a new music company that we believe can thrive creatively and financially in a highly challenging world-wide music market,” Sony BMG Entertainment Chairman of the Board of Directors Rolf Schmidt-Holtz said in a statement.
Then there are those who do not blame the record companies for trying to make money. Kimi Luc, a junior biology major at UC-Irvine, blames the bands for signing with the labels in the first place.
“I think that bands that do this have one goal in mind: to make money,” Luc said. “If those are the means by which they choose to make money, then that’s fine by me. However, I would consider them selling out.”
Merges can be expected when there is more than one company thriving. But even with the merges, record sales and movie sales will continue to flourish.
“I think no matter what the reasons are, people will continue to buy any music run by any label because of huge music fans like myself,” Tse said. “If you truly like a band or singer’s music, no matter what label they are signed under, a music fan will support them.
“Some people may become disappointed when their favorite band or singer signs with a huge record label, but in the end, it is up to the musician to make music for the art and not solely for profits,” she added.
