Amazon.com launched its long-awaited digital music store today at prices cheaper that Apple Inc’s iTunes, with songs costing $.89 to $.99 each. Major music labels such as Universal Music Group (a unit of Vivendi SA) and EMI Music, as well as thousands of independent labels, have signed on to sell their tracks on Amazon ( see article from The Wall Street Journal). To determine if any connections played a role in why some major music labels signed with Amazon, we created an IntellectSpace Knowledge Map between Amazon.com and Vivendi Universal SA and found strong ties between them.
As clearly seen in the Knowledge Map, the strongest ties are between Jonathan Miller and Barry Diller. Miller, a former Chairman/CEO of AOL, is a large investor in Amazon. Diller is the former Chairman/CEO of Vivendi Universal Entertainment, and both share connections through four different companies:
· Miller was the President/CEO of USA Information Services, the predecessor of IAC; Diller has been Chairman/CEO of IAC since 1995
· Miller and Diller also shared directorships at Ticketmaster and Expedia, where Diller has been Chairman since 2006
· Miller held a number of Executive positions with Paramount Pictures early in his career, where Diller was the former Chairman/CEO.
Another noteworthy connection can be made through Electronic Arts Inc. William Gordon (Director at Amazon) is a Co-Founder of EA and currently serves as Executive Vice-President and Chief Creative Officer, and Warren Jenson (former Senior Vice-President and CFO at Amazon) is currently Executive Vice-President and CFO at EA. Both men work with Hubert Larenaudie, who formerly served as President of Asia-Pacific for Vivendi Universal Games and currently serves as President of Online-Asia for EA.
It is quite possible that these ties played a role in facilitating this important deal for Amazon and Vivendi Universal.
Click here for an interactive version of this IntellectSpace Knowledge Map (Internet Explorer browsers only): http://nv.intellectspace.com/ispace/GuestMonitor.aspx?id=8b0846fe-f6f9-4e01-810e-2c305b9d959d