Managing Joint Venture Success
The key to managing joint venture success is to team with another company that brings a similar benefit to the table. By definition, the assets, revenues and expenses of each participant should be shared in a JV.
The European Union, an oversight organization for EU member states, has elected to take a look at a proposed joint venture between UK based PRS For Music and a Sweden and Germany company. According to an RMBiz.com online article, the EU is looking at whether the potential merger of PRS For Music, STIM and GEMA lines up with EU Merger Regulation.
In their preliminary review, they showed that they were concerned that the venture could result in higher prices, reduced competition and reduced choices for digital consumers; which would give unbalanced bargaining power to the joint venture.
Assessing Joint Venture Success
The January 15, 2015 article reported that PRS For Music chief executive had comments about the news about the European Commission’s review. “Given the complexity of the multi-territory digital market place and the scale and scope of the ground breaking solution that we are bringing to the table, it is understandable that your joint venture is subject to an in-depth assessment. We will continue to co-operate fully with the European Commission and look forward to a successful resolution of the process,” he said. On its note, the United Kingdom Company is expecting that the joint venture will get the nod, allowing the triad to fulfil their plans.
Joint Venture Success for Songwriters
In 2012, another music industry joint venture was announced by EMI Music Publishing. A London-based press release indicated that Ivor Novello songwriter Plan B (Ben Drew) and EMI entered into a joint venture by launching a company called Temperamental Music. In this venture, they outlined plans that Drew will give creative input regarding signing and developing and marketing songwriting talent. Both EMI’s president and vice president were quoted in the press releasing offering praise and respect for Drew, while Drew shared these words, “I’ve always wanted to be in control of my destiny and build my own empire and this is one step closer to that. I feel I can help young musicians progress and plant some positive seeds in their heads. Before I made it I was trying to help other people, the only difference is now I’ve got a budget.”
Join us on Thursday 12th February for the final part of: How to Form a Profitable Joint Venture.
Just a thought – do you have a favourite Fish and Chips shop in London? Starting in East London we will be featuring really good Fish and Chips shops as recommended by you.