From BBC

 

Falling CD sales hit EMI earnings

 

EMI CD sales have been less than glittering of late Earnings have fallen once again at EMI as the music group continued to feel the pinch from falling CD sales. The UK firm said revenues from CD sales fell 19.8% in the three months to June as digital downloads gained ground.

 

LifeLight

Source: MW

 

Revenues fall at EMI

06 August 2007 - 14:22:37

 

 

Revenues at EMI have fallen 5.1% in the major’s first financial quarter of 2007, despite a strong performance at EMI Publishing.

 

Revenues at the major’s publishing arm increased by 11.9% for the quarter, with mechanical revenues holding up well in the face of declines in the recorded music markets, according to an interim management statement released today.

 

However, this was offset by a poor performance at EMI Music, with revenues down 13.4% for the quarter, reflecting a tough recorded music market, as well as EMI’s “light release schedule” in the quarter. Digital revenues increased 26.0%, while revenues from physical product fell 19.8%.

 

Finally, EMI says that cost savings from the previously announced restructuring programmes are being delivered on budget.

 

I'm still wondering what is to become of EMI. I find it hard to believe that the change of ownership which is currently playing out is going to be the end of the story.

 

When Warner changed hands in 2004, they acquired a new boss who had both experience of running a major label and a personal interest in music. EMI are in the process of being bought up by a financial speculator who probably doesn't know the first damn thing about the music business. He's in it for the money. Where does that put EMI?

Globe & Mail

 

Warner Music may go private

 

Reuters

 

August 8, 2007 at 9:52 AM EDT

 

NEW YORK — Warner Music, bruised by the steady decline in CD sales, is mulling the possibility of going private, the New York Post said on Wednesday.

 

Citing company sources, the paper said Warner Music's falling stock price and negative sentiment for the music industry in general, is frustrating Warner's financial backers.

 

The going-private discussion at the company, home to artists such as the Flaming Lips and Kid Rock, "is understood to be in its infancy," the paper said.

 

Warner Music on Tuesday posted a wider-than-expected quarterly loss as growth in digital revenue failed to make up for declining CD sales, sending shares down as much as 10 per cent.