Stock price decreased by 8% from €18,75 to € 17,30
There are several example out of this corporation that might useful for MGT656:
1. Vivendi is a highly diversified company. It is critical issue to decide whether the company is related or unrelated. Since the core competence is "entertainment", one might suggest that the company is strongly related.
Here is my theory: There might be a relation between Telecom France and Telecom Marocco where Vivendi is using a common core competence.
But again the other business units, even though they all are related with entertainment, they are not closely related to each other since each business unit is dealing with different products. The closest relation I can think of is putting a song published by Universal Music into a VideoGame which is produced by Activision Blizzard.
2. Universal Music is a perfect negative example for short-term thinking versus long-term thinking in terms of Strategy. Even though the music business is shrinking, Universal suceeded to maintain its position over the years. Thus, Universal was able to adapt and change its strategic direction due to environmental changes
3. Last but not least, Vivendi is a very good example for today's globalization. It owns companies that are worldwide established but have their origins in different countries. Vevindi is also a good example of a company that has not built its own competence but bought its competences by acquiring other companies....this is also a Corporate Strategy maybe
Answers to your questions:
I really think I would love to work for Vivendi, especially at Universal Music. The reason is because it is going to be very interesting how the music industry will continue. I am interested in how the music industry will find the way to sell its products and as result how to overcome the current situation. New methods need to be invented in order to ensure growth in the mature market
I would recommend to invest in this company since it is well diversified, thus, risk in one business unit level can be lowered by stable or growing sales in other business segments. But for sure, investing in this corporation would be long-term decision, since business models are changing due to changes in the "entertainmen industry". Right now, it is time to invest by a low stock price; I expect for instance the music industry to improve in the next few years since regulations and partnerships in the online segment will occur.
Oil Price: I expected the oil price to rise to $3.20... I thought about the summer break where people would demand more gas but it did not work...so I saw that the current oil price is 2,35. Apparently I overestimated some things :-)
Sonntag, 28. Juni 2009
Montag, 22. Juni 2009
Vivendi goes to Africa
Vivendi and the Kuwait based company (MTC) started talks about the acquisition of MTC's African operations.
Information from Zain’s website quoting Business Day of Nigeria says MTC—the owner of the Zain brand—was in talks with the French company to sell its 85 per cent stake in Zain Africa for $12 billion.
This will not be the first time, Vivendi is showing an interest to invest in Africa’s mobile telephony sector since they owned a 60 per cent stake in the same firm when its was known as KenCell before it sold its holding at $ 250 million to Celtel International, which later sold its shares to Zain Group for $ 3.4 billion in March 2005.
Vivendi has a presence in other African countries such as Mauritania (Mauritel), Burkina Faso (Onatel), Morocco’s Maroc and Gabon (Gabon Telecom).
see more:
http://www.businessdailyafrica.com/Company%20Industry/-/539550/611354/-/u9oeshz/-/
Information from Zain’s website quoting Business Day of Nigeria says MTC—the owner of the Zain brand—was in talks with the French company to sell its 85 per cent stake in Zain Africa for $12 billion.
This will not be the first time, Vivendi is showing an interest to invest in Africa’s mobile telephony sector since they owned a 60 per cent stake in the same firm when its was known as KenCell before it sold its holding at $ 250 million to Celtel International, which later sold its shares to Zain Group for $ 3.4 billion in March 2005.
Vivendi has a presence in other African countries such as Mauritania (Mauritel), Burkina Faso (Onatel), Morocco’s Maroc and Gabon (Gabon Telecom).
see more:
http://www.businessdailyafrica.com/Company%20Industry/-/539550/611354/-/u9oeshz/-/
Freitag, 19. Juni 2009
Vivendi Wins $1.9 Million Award From Woman Who Swapped Songs
Nice to see how the music industry tries to get money from private household... :)))
June 19 (Bloomberg) -- A Minnesota woman accused of swapping music over the Kazaa Internet service was ordered by a jury to pay Vivendi SA’s Universal Music Group and other record labels $1.9 million after a retrial.
A federal jury in Minneapolis said Jammie Thomas-Rasset, 32, of Brainerd, Minnesota, should pay $80,000 for each of the 24 songs that were posted on the site so others could download them, including “Iris” by the Goo Goo Dolls and “Welcome to the Jungle” by Guns ‘n Roses. The first time the case went to trial, in 2007, a jury awarded $9,250 per song, or $222,000.
The Recording Industry Association of America brought more than 35,000 legal actions against people it claims were illegally sharing music before changing its policy in December. This is the only case to go to trial thus far. U.S. District Judge Michael J. Davis threw out the first verdict, saying he gave the jury incorrect instructions.
After yesterday’s verdict, Thomas-Rasset, a natural- resources coordinator for the Mille Lacs Band of the Ojibwe, said she was disappointed that she wasn’t able to convince the jury that she didn’t post the songs.
“There was nothing I could do,” Thomas-Rasset said. “Now the record industry has a $2 million award against me. The only thing I can say is good luck trying to get it, because you can’t get blood out of a turnip.”
Her lawyer, Kiwi Camara of Camara & Sibley in Houston, said Thomas-Rasset may appeal the verdict, or try to negotiate a settlement.
‘Willing to Settle’
“From day one, we’ve been willing to settle this case for somewhere between $3,000 and $5,000,” said Cara Duckworth, an RIAA spokeswoman.
The jury could have awarded anywhere from $750 a song to $150,000 a song.
In his order for a new trial, Davis in September urged Congress to change copyright law to address damages in peer-to- peer cases such as this one. He called the $222,000 award -- equal to more than 500 times the cost of buying 24 compact discs -- “unprecedented and oppressive.”
‘Constitutional Questions’
“The disproportionate size of the verdict raises constitutional questions,” said Fred von Lohmann, a lawyer with the consumer group Electronic Frontier Foundation that’s criticized the music industry’s tactics. “Was the jury punishing her for what she did, or punishing her for the music sharing habits of tens of millions of American Internet users?”
While most of the lawsuits filed by the RIAA ended in settlements, there are still cases unresolved and the group continues to file new complaints where investigations began before last August.
“The question is, ‘Does this have any longer-term consequences on file sharing,’” said Lawrence Kenswil, an attorney with Loeb & Loeb in Los Angeles who earlier headed Universal Music’s digital division. “The general feeling is, people don’t think they will get caught.”
During the four-day trial, lawyers for Thomas-Rasset argued that the record companies couldn’t prove she was the person who was posting the songs on the Kazaa file-sharing site and likened the RIAA’s tactics of suing users to the villainous robot in the “Terminator” movies.
‘Significant Layoffs’
The illegal downloading has “caused significant layoffs and harm to my clients’ ability to provide the music that we all enjoy,” music industry lawyer Timothy Reynolds, of Holme Roberts & Owen LLP in Denver, told the jury in closing arguments.
At its peak in 1999, the industry brought in $14.6 billion in sales; last year that number had fallen to $8.5 billion. The RIAA claims the primary reason for the drop was because of online music theft as well as traditional piracy in the form of bootlegged CDs.
The RIAA in December changed its policy to work with Internet service providers to impose sanctions on people who illegally swap songs over the Web.
In throwing out the original verdict, Davis said it wasn’t enough that Thomas-Rasset may have posted the songs on the Internet. To find against her, the jury must decide the songs had actually been distributed to someone else, he said.
In addition to Universal Music Group, labels involved in the case are owned by Terra Firma Capital Partners Ltd.’s EMI Group Plc, Warner Music Group
June 19 (Bloomberg) -- A Minnesota woman accused of swapping music over the Kazaa Internet service was ordered by a jury to pay Vivendi SA’s Universal Music Group and other record labels $1.9 million after a retrial.
A federal jury in Minneapolis said Jammie Thomas-Rasset, 32, of Brainerd, Minnesota, should pay $80,000 for each of the 24 songs that were posted on the site so others could download them, including “Iris” by the Goo Goo Dolls and “Welcome to the Jungle” by Guns ‘n Roses. The first time the case went to trial, in 2007, a jury awarded $9,250 per song, or $222,000.
The Recording Industry Association of America brought more than 35,000 legal actions against people it claims were illegally sharing music before changing its policy in December. This is the only case to go to trial thus far. U.S. District Judge Michael J. Davis threw out the first verdict, saying he gave the jury incorrect instructions.
After yesterday’s verdict, Thomas-Rasset, a natural- resources coordinator for the Mille Lacs Band of the Ojibwe, said she was disappointed that she wasn’t able to convince the jury that she didn’t post the songs.
“There was nothing I could do,” Thomas-Rasset said. “Now the record industry has a $2 million award against me. The only thing I can say is good luck trying to get it, because you can’t get blood out of a turnip.”
Her lawyer, Kiwi Camara of Camara & Sibley in Houston, said Thomas-Rasset may appeal the verdict, or try to negotiate a settlement.
‘Willing to Settle’
“From day one, we’ve been willing to settle this case for somewhere between $3,000 and $5,000,” said Cara Duckworth, an RIAA spokeswoman.
The jury could have awarded anywhere from $750 a song to $150,000 a song.
In his order for a new trial, Davis in September urged Congress to change copyright law to address damages in peer-to- peer cases such as this one. He called the $222,000 award -- equal to more than 500 times the cost of buying 24 compact discs -- “unprecedented and oppressive.”
‘Constitutional Questions’
“The disproportionate size of the verdict raises constitutional questions,” said Fred von Lohmann, a lawyer with the consumer group Electronic Frontier Foundation that’s criticized the music industry’s tactics. “Was the jury punishing her for what she did, or punishing her for the music sharing habits of tens of millions of American Internet users?”
While most of the lawsuits filed by the RIAA ended in settlements, there are still cases unresolved and the group continues to file new complaints where investigations began before last August.
“The question is, ‘Does this have any longer-term consequences on file sharing,’” said Lawrence Kenswil, an attorney with Loeb & Loeb in Los Angeles who earlier headed Universal Music’s digital division. “The general feeling is, people don’t think they will get caught.”
During the four-day trial, lawyers for Thomas-Rasset argued that the record companies couldn’t prove she was the person who was posting the songs on the Kazaa file-sharing site and likened the RIAA’s tactics of suing users to the villainous robot in the “Terminator” movies.
‘Significant Layoffs’
The illegal downloading has “caused significant layoffs and harm to my clients’ ability to provide the music that we all enjoy,” music industry lawyer Timothy Reynolds, of Holme Roberts & Owen LLP in Denver, told the jury in closing arguments.
At its peak in 1999, the industry brought in $14.6 billion in sales; last year that number had fallen to $8.5 billion. The RIAA claims the primary reason for the drop was because of online music theft as well as traditional piracy in the form of bootlegged CDs.
The RIAA in December changed its policy to work with Internet service providers to impose sanctions on people who illegally swap songs over the Web.
In throwing out the original verdict, Davis said it wasn’t enough that Thomas-Rasset may have posted the songs on the Internet. To find against her, the jury must decide the songs had actually been distributed to someone else, he said.
In addition to Universal Music Group, labels involved in the case are owned by Terra Firma Capital Partners Ltd.’s EMI Group Plc, Warner Music Group
Donnerstag, 18. Juni 2009
Music Sales to Fall 12% by 2013 as Online Passes CDs, PwC Says
here is a short article concerning the CD sales decline and the mp3 sales increase.
The big problem is that even though mp3 will surpass CD, the profit will decrease since profit margin is lower
http://www.bloomberg.com/apps/news?pid=20601088&sid=aXt89FzwmrVU
Music Sales to Fall 12% by 2013 as Online Passes CDs, PwC Says
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By Adam Satariano
June 16 (Bloomberg) -- Global music sales, squeezed by Internet piracy and tumbling demand for compact discs, will fall at a 2.5 percent annual rate over the next five years as non- physical formats overtake CDs, PricewaterhouseCoopers LLP said.
Spending on recorded music will drop 12 percent to $26.1 billion from $29.6 billion in 2008, according to New York-based PricewaterhouseCoopers’ “Entertainment and Media Outlook for 2009-2013” report being released today.
Revenue from music distributed online will surpass physical sales by 2012, the first segment in media and entertainment to make the transition, the New York-based consulting firm said. CD sales will continue falling as consumers switch to online or wireless formats, including downloads, Internet radio and ring tones, PricewaterhouseCoopers said.
“The digital revenues aren’t able to keep pace with the decline in physical CDs,” Stefanie Kane, a partner with PricewaterhouseCoopers, said in an interview yesterday. Consumers are only buying the songs they want to hear and not full albums, resulting in a drop in profit for the music companies, she said.
Physical formats will fall 49 percent through 2013 to $11.3 billion. A 95 percent surge in non-physical music sales, to $14.2 billion, won’t offset the losses, PricewaterhouseCoopers said. A year ago, the accounting firm had predicted new-format revenue would outstrip CD sales by 2011.
Music sales fell last year at a faster rate than PricewaterhouseCoopers predicted. Sales for 2008 came in about 8 percent below the $32.2 billion the firm projected a year ago.
Ad-Supported Music
Advertising-supported services such as Vevo.com, a venture between Vivendi SA’s Universal Music Group and Google Inc., and Apple Inc.’s iTunes online store will drive the increase in non- physical music sales, PricewaterhouseCoopers said. Kane also cited Internet radio services such as Pandora Media Inc. and Last.fm.
While piracy will to continue hamper sales, collaboration between record companies and Internet service providers will reduce the rate of illegal downloads, according to the report.
Asia Pacific, including Japan, Australia and China, is the only region where total music spending will rise, according to the report.
The big problem is that even though mp3 will surpass CD, the profit will decrease since profit margin is lower
http://www.bloomberg.com/apps/news?pid=20601088&sid=aXt89FzwmrVU
Music Sales to Fall 12% by 2013 as Online Passes CDs, PwC Says
Share Email Print A A A
By Adam Satariano
June 16 (Bloomberg) -- Global music sales, squeezed by Internet piracy and tumbling demand for compact discs, will fall at a 2.5 percent annual rate over the next five years as non- physical formats overtake CDs, PricewaterhouseCoopers LLP said.
Spending on recorded music will drop 12 percent to $26.1 billion from $29.6 billion in 2008, according to New York-based PricewaterhouseCoopers’ “Entertainment and Media Outlook for 2009-2013” report being released today.
Revenue from music distributed online will surpass physical sales by 2012, the first segment in media and entertainment to make the transition, the New York-based consulting firm said. CD sales will continue falling as consumers switch to online or wireless formats, including downloads, Internet radio and ring tones, PricewaterhouseCoopers said.
“The digital revenues aren’t able to keep pace with the decline in physical CDs,” Stefanie Kane, a partner with PricewaterhouseCoopers, said in an interview yesterday. Consumers are only buying the songs they want to hear and not full albums, resulting in a drop in profit for the music companies, she said.
Physical formats will fall 49 percent through 2013 to $11.3 billion. A 95 percent surge in non-physical music sales, to $14.2 billion, won’t offset the losses, PricewaterhouseCoopers said. A year ago, the accounting firm had predicted new-format revenue would outstrip CD sales by 2011.
Music sales fell last year at a faster rate than PricewaterhouseCoopers predicted. Sales for 2008 came in about 8 percent below the $32.2 billion the firm projected a year ago.
Ad-Supported Music
Advertising-supported services such as Vevo.com, a venture between Vivendi SA’s Universal Music Group and Google Inc., and Apple Inc.’s iTunes online store will drive the increase in non- physical music sales, PricewaterhouseCoopers said. Kane also cited Internet radio services such as Pandora Media Inc. and Last.fm.
While piracy will to continue hamper sales, collaboration between record companies and Internet service providers will reduce the rate of illegal downloads, according to the report.
Asia Pacific, including Japan, Australia and China, is the only region where total music spending will rise, according to the report.
Dienstag, 16. Juni 2009
unlimited Downloads
After our team presentation about the music industry, this morning I found an interesting article at NYT online...Universal Music and Virgin Music will offer unlimited downloads in context of their partnership!
Here is the link:
http://www.nytimes.com/2009/06/16/technology/internet/16music.html?ref=technology
Here is the link:
http://www.nytimes.com/2009/06/16/technology/internet/16music.html?ref=technology
Montag, 15. Juni 2009
Vevo is a cooperation between Youtube and music Majors
Vevo is a video plattform where obviously musi videso from popular artists are going to be released the first time in the internet.
As I know Music companies were against uploading music videos on youtube...because they do not earn money from that. Therefore, Vevo might be a coorperation that is monetizing the internet format.
As I know Music companies were against uploading music videos on youtube...because they do not earn money from that. Therefore, Vevo might be a coorperation that is monetizing the internet format.
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