February 1, 2009

• Finally, somebody has a good take on EMI's recent earnings release. Yes, its second-half of 2008 loss was an improvement, but there are important implications to its strategy. "The cost cuts are helping to reduce the company's losses, but they also appear to be costing EMI market share, which could make it harder to become profitable over time. EMI's share of global CD sales fell to 9.8% from 10.6% in the half, according to the EMI accounts." Isn't it funny that the press loves EMI and tends to loath the two companies that have gained market share in recent years, Universal Music Group and Warner Music Group? Maybe there's a correlation between stubbornness and market share. (Wall Street Journal)

• Slightly good news for music companies: Woolworths will return as an online retailer. (Reuters)

• Along with Jean-Marie Messier, the former Vivendi Universal CEO, former Vivendi Universal vice chairman (and current Warner Music CEO) Edgar Bronfman Jr. was cleared of insider trading by a Paris prosecutor. A magistrate still needs to review the case. (Variety)

• Not a surprise that there is still tension between iTunes and labels. "In interviews, several high-level music executives, who spoke on the condition that they not be named to avoid angering Apple, said they operated in fear of Apple’s removing a label’s products from the iTunes store over a disagreement, even though that has never happened. The labels do not have much leverage in negotiating with Apple." (New York Times)

• Thorsten Koenig, managing director of Universal Music Germany's international division, is leaving the company. (Billboard.biz)

• Music distributor The Orchard has joined the Digital Data Exchange, a group formed in 2006 to develop standards for XML message formats for the exchange of metadata. (Press release)

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Posted by Glenn at 10:38 AM | | EMI

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