UMG MAY COMBINE FARMCLUB, GETMUSIC

While Universal Music Group negotiates to buy out BMG's portion of GetMusic.com, speculators are speculating that the company may consider merging the music site with Farmclub.com.

According to Variety, industry watchers noted that a Farmclub/GetMusic consolidation would make strategic sense. Firstly, the overlap of services is minimal, since GetMusic deals primarily with information and downloads from signed artists where Farmclub showcases unsigned talent or upcoming bands signed to its in-house label.

The combination—likely to be conditional on a successful conclusion in the BMG buyout talks—could also help the two sites improve their financial situations by cutting costs and playing to the strengths of each.

Said one industry insider quoted by Variety, "They've lost a ton of money on both, so it might not be such a bad idea [to consolidate]."

GetMusic.com was a 50/50 venture funded by UMG and BMG.