Media giant Bertelsmann announced its 2006 earnings yesterday. BMG, half of the Sony BMG joint venture, was the only division that did not improve its position from last year. BMG posted revenues of € 2.0 billion (down 5.2% from € 2.1 billion in 2005) and operating earnings (before interest and taxes) of € 173 million (down 2.3% from € 177 million in 2005). The company said the music division's lower 2006 performance "is attributed solely to the recorded music business." But there was (slight) good news as BMG "was able to raise the revenue contribution from digital formats from seven to twelve percent."

Retailer Borders announced its annual earnings today and gave some indication as to its future plans. (Read 8-K report) Sales increased 0.8% but the company reported a net loss of $151.3 million versus a gain of $101.0 million last year. Operating income dropped 38.5% to $111.3 million. Borders said 2007 will be "a year of transforming and stabilizing—but not significantly improving—financial performance."

No details were given on music sales but I can't imagine them being anything but disappointing. The announcement of "Digital Centers" (see below) looks, on the surface, like a bad development for the CD format and more trouble for overall album sales.

The most interesting parts of today's announcements came from a press release about Borders' long-term strategy to focus on core domestic superstore business. Among the planned initiatives:

• Modifications to its rewards program
• Work on a new concept store prototype that will include "destination businesses, technology and experiential elements that will dramatically enhance the shopping experience and set Borders apart from the competition"
• Reworking its merchandising system

Today's earnings press release mentions another new initiative, new "Digital Centers" that "will enable customers to learn about, interact with, and purchase new digital products -- such as audio books, e-books, MP3 players -- and services such as downloading and personal publishing that complement the Borders brand."

[music jobs] HR Manager at EMI NA; New York, NY.