MUSIC NEWS - Warner Music Group (WMG) has closed Ryko Distribution and announced it will move all of the "Ryko handled" labels to their ADA independent distribution division over the next 45-90 days. WMG acquired Ryko Distribution back in 2006 as part of the $67.5M acquisiton of the Rykodisc label. All 25 Ryko employees will be let go but may apply for new positions in an expanded ADA, according to trade reports. Additionally, WMG elinmated 10 employees at their major label distribution arm. Ryko Distribution had about $50 million in sales in 2008. The new, combined indie divisions should reach $200 million.
MNN expects to see further consolidation within the music & dvd distribution sector companies, as sales continue to decline. The impact on indies is significant, by giving the major labels more power in the "indie" music distribution biz.
MNN expects to see further consolidation within the music & dvd distribution sector companies, as sales continue to decline. The impact on indies is significant, by giving the major labels more power in the "indie" music distribution biz.
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