Sony BMG hemorrhaging cash, to the tune of $42 million/quarter
Sony BMG, one of the more notorious major label companies who's currently trying to sell itself off, may just have gotten some numbers back that won't entice it to buyers. An 6% decline in sales resulted in a net loss of $42 million last quarter—that is not a misprint. Lest you think that this has been part of a continuous trend, Sony BMG made a $31 million profit during the same quarter last year. Releases of Usher, Neil Diamond, and Leona Lewis couldn't save the label, and the options are looking to be increasingly limited. [Hypebot]
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3 Responses
July 30, 2008 at 1:21 p.m.
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Hmmm... the long term "screw artists and suck at everything" strategy isn't panning out. Weird. |
July 30, 2008 at 7:45 p.m.
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Ha ha, so true FMH. In general, everything's changing. The old story that you needed big label clout to get the word out and have your record in stores ain't the case anymore. Big labels do nothing that "independent" labels (which are looking bigger everyday) can't do. Oh. And there's that pesky internet and stuff... |
From a $31 million profit to a $42 million loss. I'd have to look into what's behind the change, but at the surface that does not look good at all.