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Saturday, January 16, 2010

2010 a possible busy year for digital music mergers

Think last year's acquisitions of iLike, imeem and Lala marked the end of consolidation for digital music services? Think again.

Gradually thawing credit markets and an increasingly competitive digital music landscape could make 2010 a banner year for mergers and acquisitions.

Apple's purchase of Lala in December lends a greater degree of legitimacy to the "cloud-based" access model for music distribution. And that deal, along with MySpace's purchase of iLike and imeem, will consolidate innovative features into a single, well-financed service -- which is surely better for the recording industry than watching them die on the vine individually reports Reuters.

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