Thursday, November 13, 2008


I know I post about Warner Music Group's dire economic situation a lot, but it all relates back to major labels refusing to shed old business models and adapt to the current environment of the Internets.

From Digital Music News:

Shares of Warner Music Group (WMG) slipped to an all-time low on Tuesday, a sign of the times for both the economy and recording industry. At the bell, shares slipped 7.17 percent to $2.98, unchartered territory for the beleaguered stock. On Monday, shares closed at $3.21.

Warner was already suffering before the massive market downturn, based on serious issues related to its model. Now, broader economic concerns have magnified those factors for investors, and the larger picture remains bleak.
For those of you who are unaware, Edgar Bronfman Jr. is the chairman of Warner Music Group. He is also the father of M.I.A's fiance Benjamin Brewer.

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