The Stupidity of the Music Industry Is Absolutely Stunning

NEW YORK (TheStreet) -- Word from Peter Kafka over at the artist formerly known as All Things D is that the owners of Vevo are looking for a buyer.

That's noteworthy because Universal Music Group and Sony (SNE) Music control the music video streamer. That's worth mentioning because, as is the case with Spotify, record labels appear to treat these entities as little more than revenue streams they're happy to share (or divest) with anybody willing to foot the bill to help run the thing.

It's shocking that with the emergence of streaming music and the death of downloads (not to mention the compact disc) the music industrial complex doesn't seek complete control of everything from Vevo to Spotify to Pandora (P). When the labels saw Pandora break out alongside the release of Apple's (AAPL) iPhone, they should have attempted to take it out via an acquisition or by building their own streaming platform(s).

Why would an industry effectively cede control over its product to technology companies and financial firms with different and, quite often, competing goals? It didn't make sense as Pandora was emerging. It makes even less sense now. It's truly nothing short of stunning that the record labels sit back and watch Pandora make better use of data derived from music (to sell advertising) than the labels themselves.

Has the music industrial complex forgotten what Apple did to it via iTunes? Is it not witness to the battle it's mired in with a Pandora that seeks to pay as little as possible to license music? These companies are, at best, frenemies to the music industry. At worst, they're adversaries or downright backstabbers. But wait ... maybe Google (GOOG) will take sole control of Vevo. They would never even think of hosing the music industry! 

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