The newly approved merger between Universal Music Group and EMI gives one company the power to dictate the future of digital music. 

SEP 21 2012 (TheAtlantic)

Ever get the feeling you've been cheated? 

Earlier today, the government's antitrust watchdog, the Federal Trade Commission,greenlighted the merger of two of the big four record labels, Universal Music Group and EMI. Once these two giants are done shacking up together, the combined company will control more than 40 percent of the music market. As far as corporate supergroups go, this one is awful. Like, LouTallicabad.

We're now talking about a company that will single-handedly control the rights to a disproportionate chunk of the world's most popular artists, past and present, without whose catalogs it will be practically impossible to sustain any sort of new, inventive digital music service. The Beatles, Katy Perry, Lady Gaga, Rihanna, Taylor Swift, Marvin Gaye, Nirvana, and The Beastie Boys (among many others) are all on the verge of becoming label mates. And their label is going to be very powerful. Spotify and Rhapsody? Be afraid. Universal-EMI has got your whole world in its hands.  

Here's how Paul Vidich, a one-time Warner music executive who was involved in signing his label up for iTunes, described a post-merger playing field in a lengthy feature by Huffington Post reporters Zach Carter and Jason Cherkis:

"Without a UMG-EMI license, they won't have a business," said Vidich, referring to new digital startups. "Within the new UMG-EMI there will be only a handful of senior executives who make these key licensing decisions. So this small group will become the gatekeepers for music startups that require these licenses. The psychology, pay packages and strategic interests of these executives will have an outsized impact on diversity and innovation in the entire online music industry."