“Warner Music Group Corp.’s fiscal third-quarter net loss narrowed despite continued struggles with the consumer shift toward digital music,” Shara Tibken reports for The Wall Street Journal.
“The record company reported a net loss of $9 million, or six cents a share, for the period ended June 30, compared with a net loss of $17 million, or 12 cents a share, a year earlier,” Tibken reports. “Revenue rose 5.5% to $848 million, but declined 1.1% in constant currency. Domestic revenue fell 6.5%, while international revenue increased 17%, or 3.6% on a constant-currency basis.”
“Within the recorded-music segment, digital revenue — which now makes up 23% of segment revenue and 20% of total revenue — jumped 39%,” Tibken reports.
“In an effort to adapt with consumers’ shift to digital music from physical CDs and better compete with Apple Inc.’s iTunes — which in April became the nation’s No.1 retailer of music, Warner and two other music-recording companies formed a partnership in April with News Corp.’s MySpace to offer the social-networking giant’s members a range of new music-listening and merchandising features,” Tibken reports.
Full article here.
[Thanks to MacDailyNews Reader “Chuckles the Microsoft CEO” for the heads up.]
Why does Warner feel the need to “compete” with Apple’s iTunes Store when Apple’s iTunes Store sells Warner music already? Abject fear. The headline says it all. Apple’s iTunes Store is responsible for at least 19.5% of that 20% of Warner’s total revenue. Steve Jobs is playing these fools like the fools they are. And, Edgar, from now on, don’t you call Steve anymore. Steve will call you when he wants something done.