Universal and Zheng Dong Merge to Cut Costs
Jacky Cheung, Eason and Hacken fights to be Number 1
Tuesday, October 24, 2006
The recording industry in Hong Kong has less and less breathing space. Even a top company like Universal Music is unable to escape this sad fate and will merge with Zheng Dong, Sang Lai Bo and Sheung Wah to become one entity.
Due to illegal downloading, sales from the recording industry has dropped by 20%. For survival, recording companies have merged to reduce costs. According to sources, Universal and Zheng Dong (a subsidiary of the company) has announced the merger. This has affected companies under Zheng Dong which includes Sang Lai Bo and Sheung Wah to become a four company merger! Among the singers under these 4 companies, it is Eason’s [Life Continues EP] that has had the best results, selling 50,000 copies. This also made him the champion of the whole industry. However, the album sales for other artistes under them have not been that ideal especially those in the 3rd and 4th liners like 2R, Yip Man Fai. As for Hacken, after the release of the World Cup EP [I wear Number 10], there is a wait until year end for his new work. In addition, Jacky did not have any works this year. Thus, it is hard to be only supported by Eason’s sales.
The merger will result in retrenchment and perhaps cutting of the less-profitable singers. Jordan Chan and Xie An Qi just moved over to Zheng Dong and thus will not be affected. Other singers like Liu Hao Long, Lin Yuan, Hins Cheung will have to adopt a wait and see attitude. Luckily, it has been reported that Hins Cheung’s new album has sold over ten thousand copies 4 days after released. Thus, it is believe that he will successful survive.
After the merger, Eason, Hacken and Jacky will fight for the Number 1 position. Among them, Jacky is already recognized as a ‘Heavenly King’. ON top of that, Eason and Hacken will both release new albums. Thus, the fight will be based on sales figures to determine who gets the position.
When reporters contacted the President of the Chinese Division and Universal, he said it was not at a position to divulge anything. “No ones know what will happen in future, but nothing has changed now.”. However, he refused to release results of 2R’s sales. The Publicity manager of Zheng Dong acknowledges that Eason’s album sold 50,000 copies while Kelly has sold ten over thousand. CEO of Universal has heard news of the merger, but has yet to receive official notice. “Everyone knows it is hard to do business. How the company changes depends on the arrangement of the main company.”
Translated by: Gillian
Original Article
Tuesday, October 24, 2006
The recording industry in Hong Kong has less and less breathing space. Even a top company like Universal Music is unable to escape this sad fate and will merge with Zheng Dong, Sang Lai Bo and Sheung Wah to become one entity.
Due to illegal downloading, sales from the recording industry has dropped by 20%. For survival, recording companies have merged to reduce costs. According to sources, Universal and Zheng Dong (a subsidiary of the company) has announced the merger. This has affected companies under Zheng Dong which includes Sang Lai Bo and Sheung Wah to become a four company merger! Among the singers under these 4 companies, it is Eason’s [Life Continues EP] that has had the best results, selling 50,000 copies. This also made him the champion of the whole industry. However, the album sales for other artistes under them have not been that ideal especially those in the 3rd and 4th liners like 2R, Yip Man Fai. As for Hacken, after the release of the World Cup EP [I wear Number 10], there is a wait until year end for his new work. In addition, Jacky did not have any works this year. Thus, it is hard to be only supported by Eason’s sales.
The merger will result in retrenchment and perhaps cutting of the less-profitable singers. Jordan Chan and Xie An Qi just moved over to Zheng Dong and thus will not be affected. Other singers like Liu Hao Long, Lin Yuan, Hins Cheung will have to adopt a wait and see attitude. Luckily, it has been reported that Hins Cheung’s new album has sold over ten thousand copies 4 days after released. Thus, it is believe that he will successful survive.
After the merger, Eason, Hacken and Jacky will fight for the Number 1 position. Among them, Jacky is already recognized as a ‘Heavenly King’. ON top of that, Eason and Hacken will both release new albums. Thus, the fight will be based on sales figures to determine who gets the position.
When reporters contacted the President of the Chinese Division and Universal, he said it was not at a position to divulge anything. “No ones know what will happen in future, but nothing has changed now.”. However, he refused to release results of 2R’s sales. The Publicity manager of Zheng Dong acknowledges that Eason’s album sold 50,000 copies while Kelly has sold ten over thousand. CEO of Universal has heard news of the merger, but has yet to receive official notice. “Everyone knows it is hard to do business. How the company changes depends on the arrangement of the main company.”
Translated by: Gillian
Original Article
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