Think of this as kind of a ‘state of the industry’ type report. It’s woefully crazy out there right now with the big labels. So let’s break it down…
Sony/BMG is soon to be two separate companies as a ‘divorce‘ appears to be in the works. I wonder who get’s to keep the house? Wal*Mart is also not helping the situation since they’re not even carrying any Sony/BMG artists on their download site right now. Just another way they’re currently losing money.
Hey, speaking of losing money… EMI has been using some questionable accounting methods to hide the fact that they really haven’t been making much money on the sale of actual new music. Yes, they’re still milking their catalog for all it’s worth, but it can’t hide the fact that the new music section of their catalog has basically lost nearly 1.5 Billion (yea that’s Billion not a typo here) dollars over the past 5 years.
Guy Hands (Captain of the ship over there at EMI) has said not to be suprised by “Massive” cutbacks at the label. But Mr. Hands is also not ruling out some re-organization that would make the back catalog more important to their bottom line. I guess you tend to go with what works… But what happens to EMI when even that doesn’t work anymore?