The Year in Preview

Entertainment:

Music: Music companies will be forced to accept smaller profit margins on albums in 1999 as talent costs rise, piracy spreads and economic recessions continue in Asia. All eyes will be on Seagram’s Universal Music Group, the new industry leader, as it attempts to slash $300 million in costs. As the industry shrinks from six to five major record corporations, thousands of employees and hundreds of musicians will be axed. Industry consolidation, however, may prove a boon for tiny independent labels, which could snap up discarded acts and develop them into superstars.