360 is the magic number for Warner Music
On The Record’s favourite music biz exec and Celine Dion accomplice seems quite taken by the whole 360 business model. Annoucing net losses and reduced revenue in the last quarter for Warner Music, Edgar Bronfman Jr told analysts that the …
Annoucing net losses and reduced revenue in the last quarter for Warner Music, Edgar Bronfman Jr told analysts that the company would, in future, look to control more than just an artist’s recorded music output.
From the FT:
Warner would seek to expand in artist management, marketing and digital distribution, Bronfman said, highlighting a $110m investment last month in Front Line Management, the largest US artist management company, as an example of the deals it was looking for.
While the company’s digital sales have risen (a jump of 29 per cent in the third quarter to $119m, or 15 per cent of total sales), Edgar is also going to get tough with digital resellers.
Mr Bronfman also signalled a more discriminating approach to deals with digital music partners, warning that the plethora of music websites had created “a sense that music is ubiquitous, to a degree that’s probably not helpful to us”.
That said, analysts and share-holders would be concerned with the company’s worse-than-expected quarterly figures.
Per the New York Times:
Warner Music, the only publicly listed major music company in the United States, said its net loss widened to $17 million, or 12 cents a share, in its third fiscal quarter, from a loss of $14 million, or 10 cents a share, a year ago. Excluding nonrecurring items, the loss was 20 cents a share, wider than Wall Street’s average forecast of 13 cents a share.
Edgar also sought to explain away why Warner Music lost out to well-known music specialists Terra Firma (the private equity group whose assets also include German petrol stations Tank & Rast, the Odeon cinema group and Northern Ireland’s Phoenix Natural Gas) when it came to the bun-fight over EMI Music.
From the Guardian:
The company has made repeated attempts to merge with EMI. It tabled a £2.1bn bid in March but lost out to a higher offer of £2.4bn from Guy Hands’ private equity outfit Terra Firma. “In order for us to succeed as a company, it is essential that we maintain our financial discipline,” said Mr Bronfman. “Accordingly we elected not to make an offer.”