“In the two years since Edgar Bronfman Jr. bought the company from Time Warner, Warner Music has been destroyed. It’s gone. There’s nothing there,” Friedman reports.
“This week, they announced they were firing 400 people, 70 of whom were said to be from the WEA sales force. In the last quarter, WMG says it lost $27 million, compared to $7 million in the same quarter last year. Mind you, three months ago they announced a 75 percent drop in profits,” Friedman reports.
“It’s very sad. This week they also announced that instead of developing artists, making hits happen or pretending to be a music company, WMG has hired two guys to make videos. They called them Den of Thieves. They also hired a guy from JetBlue airlines to maximize the Warner catalog online. While Sony BMG and Universal at least try to release new acts, market them, sell them, get them played on the radio, WMG is giving up,” Friedman reports.
“We hear every day that downloading has ruined the music business. I say that is ridiculous. Laziness and greed have destroyed the industry from within. Warner Music has been turned into a venture capital pawn. It doesn’t matter if they don’t release anything; they will just lay off 400 people to show a profit. The people don’t matter and neither does the music,” Friedman reports.
Friedman writes, “Here’s a suggestion: Why not just give up and change the name to Warner Management Group or Warner Miscellaneous Group? Because the music is dead there, and so is the hallowed legacy.”
Full article here.
[Thanks to MacDailyNews Reader “Archie” for the heads up.]
Perhaps Warner is susceptible during the ongoing negotiations with Apple regarding the iTunes Store and Steve Jobs’ quest for DRM-free music? As always, we advocate eliminating the Middlebronfman.