| The two companies have
struck a deal in principle to create
a combined group that will rival
Universal Music, the world's largest recording label, in size. The
new group will account for a quarter
of legitmate recording sales around
the world.
The big recording labels are in a mood to join
forces to combat the explosion of music
piracy, which has slashed their
revenues and profits. Increasingly music fans download their tracks
for free over the internet. And, in parts of Asia bootleg
CDs account for 90 percent or more of all music sold.
The deal between Sony and BMG is described for the moment as
non-binding, with the details to
be finalised within a few weeks.
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struck a deal: made an agreement
in principle: without agreeing
details
rival: compete with
account for: represent
legitimate recording sales: sales
of legally produced tapes and CDs
join forces: become stronger by
uniting
music piracy: illegal copying and
selling of tapes and CDs
slashed: dramatically reduced
bootleg CDs: illegally copied CDs
non-binding: if an agreement is non-binding, the people
or organisations involved can still change their minds
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