Record Labels - Prices marked down Thursday, November 08, 2007
The City analysts are starting to spot the issue - record companies revenues may be under threat, with a resultant impact on share prices for such companies.
Webware picked up on a couple of those analysts recent notes on Warner Music, which were moved to a sell recommendation.
Richard Greenfield of Pali Research, penned a gloomy report about why he thinks the sector is headed for even greater losses.
"No matter how many people the RIAA sues, no matter how many times music executives point to the growth of digital music, we believe an increasing majority of worldwide consumers simply view recorded music as free," Greenfield wrote.
Following the reports, Warner Music's stock hit a 52-week low ($8.78) on Friday. The company's shares, which were trading above $27 a year ago, closed Tuesday at $9.50.The recorded music sector generated revenues of $14.3 billion in 2000, according to the Recording Industry Association of America, or RIAA. This year, it's expected to report revenue of $10.3 billion. Had sales growth only kept pace with the U.S. economy, it now would be worth $17 billion
posted by John Wilson @ 10:19 AM Permanent Link
newsvine
reddit
1 Comments:
-
At 9:23 AM,
Hawkeye said...
-
Interestingly I read in several newspapers that Radiohead's experiment of allowing downloaders to set the price paid for their latest album has been a failure because the average price paid is £2.90. I would suggest that in a conventional CD sale, typcally about £8.99 from most online retailers if not the high street stores, Radiohead would have been lucky to receive £1.00 of the £8.99 and therefore I would suggest that with no record company involved the band is receiving most of the £2.90 and on that basis are quids in. I personally would like to be involved with failures like that!
