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EMI Physical Revenues Down
August 6, 2007
Thomas Mennecke
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Reflecting the flux state of the music industry, EMI published an interim management statement on the financial affairs of this progressive label. There's some good news and a lot of bad news; however, there's a glimmer of hope in the digital download department.

EMI was the first major record label to take a big gamble by offering DRM-free (copyright restriction free) music on various online stores such as iTunes. The move raised eyebrows on various fronts, as many suspected the strategy would lead to either to the company's demise or end in complete failure. Yet today's numbers do not seem to indicate that this is the case.

In fact, EMI's interim statement suggests the decision to sell unencumbered digital MP3 tracks appears to have paid off. That's the good news. But let's check the bad news first.

The bad news is that EMI Group's total revenue (including all divisions of the company) had declined by 5.1% for the first quarter of this year. Leading the decline was EMI Music, which saw a hefty decline of 19.8% in physical music sales. EMI noted that "tough market conditions" - a euphemism for unmitigated piracy - and a light release schedule kept revenues down.

There was also some good news for EMI. Digital music revenues increased by 26% in the first quarter - a positive endorsement of EMI's decision to sell DRM-free music. Additionally, EMI's Music publishing division saw overall revenue increase by 11.9%. Digital sales increased by 13.9%, while physical sales increased by 11.9%.

So while the old way of doing things - namely, selling those funny looking discs called CDs - is falling out of favor, EMI’s future may look bright on the digital front.

This story is filed in these Slyck News categories
Entertainment Industry :: Other

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