WMG Stock Hits New Low

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WMG Stock Hits New Low...

By: Bruce Houghton
2007-08-08

...As Bronfman Promises Turnaround. It was an up day on Wall Street, but Warner Music stock tumbled another 10% Tuesday...

...to a 52 week low after a week earnings report. The stock ended the day at $9.89.

CEO Edgar Bronfman tried to find some bright spots pointing to strong digital growth and a growing percentage of market share (which really means WMG sales did not decline as quickly as its competitors).

"While the overall music business, including management, touring, sponsorship, merchandising, et cetera is growing, the recorded music business at present is not, while the music publishing business remains stable." stated Bronfman. So as a cure for WMG's woes he promised a more diversified business going forward touting a recent $110 million investment in Frontline Management as an example.

WMG's stock troubles are part of a growing realization on Wall Street that there is no easy fix for the recorded music industry. Sadly, the major labels seem unable to adjust quickly enough to catch any of the waves of new profits in digital, social networking and corporate tie-ins; thus leaving room for swifter and more forward thinking entrepreneurs to reshape the music industry.

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About the Author:
Bruce Houghton is a 25 year music industry veteran who owns booking agency Skyline Music and the tour marketing company Skyline Innovations.

http://www.hypebot.com


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