Australian record giant Sony BMG will diversify its interests by producing concerts and music festivals.
But it doesn’t look like music promoters like Michael Chugg are too worried about the competition.
“Good luck to them. They’re trying to save their business, but I think it’s … too little, too late,” he told The Sunday Telegraph.
Personally, I think the move just makes good business sense. We all know that people just aren’t purchasing as many albums as they used to, and these companies need to do what they can to stay afloat. And why should the record companies spend millions on developing an artist, only to see their investment lining the purse of an independent concert promoter?
If the move pays off, I’m sure we’ll see Universal, EMI, and Warner jumping on board before too long.